The lawsuit against Stake.us has taken a turn, as the judge has declined to rule on the ongoing case between Dennis Boyle and the sweepstakes casino. Boyle originally filed the suit in February, claiming that it was to “prohibit unlawful acts” that could impact the general public.
Outside of the $75,000, Boyle was seeking to have Stake.us shuttered over its alleged malicious actions. A major part of this claim is not being “truly random” through the use of algorithms that are tilted in the house’s favor.
Another key part is that the way the sweepstake casino operates is claimed to be gambling, something which Stake has pushed back on heavily. Sweepstakes casinos function by selling bundles of “gold coins” and premium currency, often referred to as “sweep coins” or, in Stake’s case, “Stake Cash”. Gold coins can be used to play games, while Stake Cash is used for money games.
The US District Court for the Central District of California has sided with Stake’s parent company, Sweepstakes Ltd., and moved the case to arbitration. It’ll now be in the hands of a third party to deliberate on the cash side of things.
Stake.us uses T&Cs against plaintiff
Stake’s reasoning for bringing the motion to the court is found in the terms and conditions. Since Boyle agreed to them, Stake has stated that he cannot sue them without going to arbitration. As such, the court has deemed it not their problem and sent it to the proper channels:
“The Court can only conclude that there is no procedural unconscionability as Boyle has failed to meet his burden.
“Therefore, the Court finds that Boyle must arbitrate his claims with sweepstakes.”
In a press release, the Social & Promotional Games Association (SPGA), a body that represents sweepstakes casinos and similar outfits, has said:
“This ruling affirms what we’ve long said: Social sweepstakes sites are not gambling.
“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.
“Anyone can file a lawsuit making any claims they like. This ruling is a reminder that facts – and the law – still matter.”
The SPGA calls it a “landmark case”, which, if everything goes Stake’s way, could have a definitive impact on future lawsuits.
