A high-profile lawsuit filed in New York has placed sweepstakes casino Stake and cryptocurrency giant Coinbase under intense legal scrutiny.
The complaint, filed on behalf of an anonymous plaintiff (“John Doe”), alleges that the platforms collaborated to allow repetitive underage gambling by bypassing traditional financial safeguards.
The “Offshore” Connection
The lawsuit characterizes Stake’s operations as an illegal offshore enterprise that remains accessible to Americans via its Stake.us sweepstakes casino website. The plaintiff claims they were recruited to gamble as a minor and were able to continue doing so through a direct pipeline to the U.S.-facing crypto platform.
As stated in the complaint:
“This lawsuit concerns the marketing and management of Stake.com, an illegal offshore iGaming business, as it targets and attracts minors… The plaintiff was recruited to participate in underage gambling, and then directed to a U.S.-facing crypto platform.”
Coinbase Targeted as Payment Infrastructure
A central pillar of the case is the role of Coinbase in the transaction cycle. The lawsuit argues that the cryptocurrency gateway was intentionally utilized to evade New York’s strict anti-gambling statutes.
The petition states:
“Coinbase, the defendant, intentionally provided the payment gateway and routing that enabled this kind of wagering. The measures and methods to evade and get around New York’s anti-gambling laws were supplied by Coinbase.”
The complaint further alleges that the exchange effectively “facilitated the exchange and transfer of funds used for illegal gambling by a minor,” creating a digital environment where age restrictions were easily circumvented through crypto-assets.
A Growing Wave of Legal Pressure
Judge Dakota Ramseur has already issued an “order to show cause,” setting a critical hearing date for May 19, 2026. This case is part of a broader national trend, with Stake facing similar complaints in states like Illinois, California, and Ohio. In 2025, the Los Angeles City Attorney also moved against Stake.us to recover resident losses.
The core dispute remains whether the “sweepstakes” model is a legitimate promotional format or merely a “covert” real-money gambling venue designed to operate without a license.
