A lawsuit filed in New York accuses sweepstakes operator Stake of enabling underage gambling while using cryptocurrency systems to support activity. The case claims the company’s offshore structure allowed continued access for US users, including minors.
Filed under a “John Doe” plaintiff, the complaint alleges that Stake’s global site and its US-facing platform worked together to avoid regulatory limits. The filing states, “This case is about the promotion and operation of an illegal offshore gambling platform, Stake.com, to target and acquire minor users.”
The lawsuit claims the plaintiff began gambling before reaching legal age and continued without meaningful barriers. It states the individual was “recruited to participate in underage gambling… and then routed to a US-facing crypto onramp.” The complaint describes the impact as “devastating,” citing “years of financial losses and a severe addiction-related injury, all incurred before Plaintiff was legally allowed to gamble.”
The legal action names Stake.com, Stake.us, Easygo Entertainment, and founders Bijan Tehrani and Edward Craven. It alleges they operated together, stating, “The Defendants… collectively operated as an integrated machine that facilitated repeated offshore gambling activity,” and claims “a complete unity of ownership and interest across the Stake Defendants.”
Crypto Payments And Marketing Tactics Examined
The lawsuit highlights cryptocurrency transactions and names Coinbase as a facilitator. It claims, “Defendant Coinbase knowingly supplied routing and payment infrastructure that made such wagering possible.” The complaint adds Coinbase “provided the compliance evasion mechanism necessary… to bypass New York State anti-gambling restrictions” and “facilitated the conversion and transfer of funds used for illegal gambling by a minor.”
The filing also describes how users could bypass safeguards, including the use of virtual private networks to access and fund accounts. It further points to influencer promotions that presented gambling as entertainment. One attorney said, “Our client’s adolescence was consumed by an addiction that these defendants engineered and profited from.”
The lawsuit also alleges influencer partnerships drove growth.“Stake.com was paying influencers millions of dollars to bring in the next generation of users. This lawsuit is about accountability, and we intend to see it through,” the attorney said.
Case Joins Broader Legal Challenges
The New York case follows a series of legal actions targeting Stake’s sweepstakes platform across several states. Similar complaints in Illinois, Alabama, and Missouri argue that the platform functions as an unregulated online casino. Additional cases have been filed in California, Minnesota, Mississippi, New Mexico, Utah, Virginia, and Ohio.
The lawsuit also references prior enforcement efforts, including a 2025 action in Los Angeles alleging illegal gambling operations. A separate civil case filed in Baltimore targets Stake along with other operators.
Court proceedings have already begun in New York. On April 14, Judge Dakota Ramseur issued an Order to Show Cause and scheduled a hearing for May 19, where the plaintiff must justify the requested relief.
Across multiple jurisdictions, lawsuits have raised similar arguments about sweepstakes sites operating as real-money gambling platforms. Some cases have been dismissed or moved to arbitration, while others remain ongoing.
Source:
“New Stake Lawsuit Alleges Underage Gambling”, x.com, April 16, 2026
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