Ohio Lawsuit Challenges Sweepstakes Casino Operator Over Alleged Illegal Gambling
Ohio Lawsuit Challenges Sweepstakes Casino Operator
A legal complaint has been initiated by Brenda Krivatch, accusing a well-known sweepstakes casino operator of functioning as an unlawful gambling platform. The lawsuit was filed on behalf of Ohio residents who have invested money on the site and reportedly faced losses.
Concerns Over Misleading Legal Claims
The lawsuit highlights that the operator advertised itself using the term “legal sweepstakes,” which, according to the complaint, misled Ohio players into believing the platform was permitted under state law. While sweepstakes casinos are typically legal across most U.S. states, there has been a recent shift with several states beginning to restrict or ban these operations starting in 2025, reflecting a growing regulatory crackdown on the sector.
State Actions and Industry Pushback
This scrutiny is not unique to Ohio. Nationwide, sweepstakes casinos face increasing opposition from lawmakers and competing gaming industries. For instance, some states like Louisiana are considering equating sweepstakes operations with serious criminal activities such as racketeering. The platform in question allegedly allows players to convert winnings into a digital currency called Stake Cash, which can then be exchanged for cryptocurrencies, leading to claims it operates similarly to licensed online gambling sites.
Broader Legal Context and Additional Lawsuits
The current lawsuit draws on past rulings involving sweepstakes cafés from the 2010s in Ohio, which were eventually deemed illegal. Brenda Krivatch is also targeting other companies in this space, including Social Gaming LLC, the operator of another sweepstakes social casino called Fortune Coins, alleging violations of state laws there as well.
Operator’s Response and Industry Status
Stake.us is one of the largest social sweepstakes casinos in the U.S. The company has denied all accusations, emphasizing that its operations have historically been supported by legal precedents. They argue that only recent challenges threaten this established understanding of sweepstakes gaming.
States Intensify Efforts Against Sweepstakes Casinos
Both tribal and commercial gaming entities perceive sweepstakes casinos as competitive threats and have lobbied for stricter regulations or bans. Many states, including Missouri, Illinois, Iowa, New Mexico, and Virginia, have seen legal complaints targeting these platforms.
Some states, such as Montana, New York, and California, have moved to fully prohibit sweepstakes casinos, prompting criticism from the Social Gaming Leadership Alliance, an industry advocacy group. Additionally, in Maryland, lawmakers continue efforts to shut down sweepstakes facilities through ongoing legal measures.
