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A Minnesota lawsuit accusing Stake.us of offering unlawful online casino gambling will remain in federal court. Judge John Tunheim rejected an arbitration request after finding that Stake.us had not proven a valid agreement with plaintiff Chris Wolters.
Good to Know
- Wolters claims more than $80,000 in gambling losses.
- Stake.us failed to prove he accepted its arbitration clause.
- The ruling does not decide whether Stake.us broke Minnesota law.
Weak Contract Evidence Blocks Arbitration
Stake.us relied on an internal screenshot and a declaration from its founder to argue that Wolters accepted online terms during registration. The screenshot did not display his name or directly confirm his acceptance.
Tunheim ruled that the evidence failed to establish contract formation. Even without the gambling law question, the court said a limited trial would be required before any order sending the case to arbitration.
Minnesota contract law created another problem. Agreements connected to conduct prohibited by public protection laws can be treated as void from the beginning.
“[I]f Stake’s Terms and Conditions are a contract entered into in violation of Minnesota’s gambling statutes, the Court must treat that contract as invalid and nonexistent,” Tunheim wrote. “Wolters has alleged facts demonstrating that Stake’s Terms and Conditions are an illegal gambling operation, and Stake has not yet presented any evidence to the contrary.”
Stake.us argued that the court should review the legality of its platform later. However, the operator did not meaningfully challenge the gambling allegations while seeking arbitration.
The judge also refused to separate the arbitration clause from the wider user agreement. The clause depended on acceptance of the full terms, meaning it could not survive if Minnesota law rendered the contract void.
Lawsuit Targets Sweepstakes Casino Model
Wolters used Stake.us from April 2023 until February 2025. He alleges losses above $80,000 and later entered treatment for gambling addiction.
Filed in August 2025, the proposed class action seeks compensation for Minnesota players under a state law covering gambling losses. It also includes claims under consumer fraud, deceptive trade practice and advertising laws, plus unjust enrichment.
Stake.us customers can buy Gold Coins and Stake Cash, use both currencies on casino games and redeem eligible Stake Cash for cryptocurrency. The complaint argues that the system operates as real money online gambling because users can convert redeemed cryptocurrency into US dollars.
“We are pleased with the Court’s decision and look forward to litigating this case on behalf of our client and all of the other Minnesotans who have been impacted by Stake.us’ illegal gambling website,” attorney Vildan A. Teske said.
Stake.us also faces a separate Los Angeles lawsuit involving Kick and several gaming suppliers.
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