Stake.us California Lawsuit Sent to Arbitration

In February, plaintiff Dennis Boyle filed a lawsuit against Stake.us, operated by Sweepsteaks LTD, claiming he lost money for years playing on the site and that Stake.us violated California gaming laws. Now, a California judge has sent the suit to arbitration. 

What Happens From Here?

There have been similar cases to this one in the past, including a lawsuit also filed in California against Fliff. 

Stake argued that Boyles agreed to arbitrate any future claims when he created an account on the platform. That said, Stake also has an opt-out clause that Boyle could have sent. This would’ve required a written request, but according to Stake, no request was ever sent. 

Before arbitration was granted, Boyle challenged it, claiming that Stake formed somewhat of an illegal contract, but US Central California District Court Judge James Selna did not side with that argument. 

“The Court can only conclude that there is no procedural unconscionability as Boyle has failed to meet his burden,” the judge said. “Therefore, the Court finds that Boyle must arbitrate his claims with Sweepsteaks.”

Now, this dispute will be handled outside of court by a neutral third party as opposed to a trial. 

By going to arbitration, this case will be removed from the public eye. 

The judge didn’t rule on the legality of sweepstakes casinos but rather enforced the arbitration clause. 

Stake is also dealing with another case in Alabama. 

Boyle Has Another Suit Against Pulsz

In addition to Stake.us, Boyle also filed a lawsuit against Pulsz, which Yellow Social Interactive runs. 

Both parties agreed to a 45-day stay due to the arbitration in the Stake.us case. It’ll resume in June. 

The Social and Promotional Games Association provided comment on the arbitration, saying, “This ruling affirms what we’ve long said: Social sweepstakes sites are not gambling,” said a spokesperson for SPGA. “They are free-to-play games enjoyed responsibly by millions of American adults, and no purchase is ever necessary to play or have a chance to win prizes.”

While the SPGA doesn’t represent Stake, it does represent Blazesoft, Fliff, and High 5. 

The SGPA has been active, recently releasing a statement condemning the SB555 law passed in Montana that effectively bans sweepstakes casinos.