Stake.us has pulled out of several US states with changes to its Terms & Conditions. Updated on February 20th, the T&Cs now bear a new list of ‘Excluded Territories’, making it one of the more restricted sweeps sites geographically.
Prior to this, Stake.us did not operate in:
- Washington
- New York
- Nevada
- Idaho
- Kentucky
- Michigan
- Vermont
The recent change adds another five states to the list:
- New Jersey
- West Virginia
- Pennsylvania
- Rhode Island
- Delaware
On top of this, according to an email sent to Connecticut-based players, Stake.us will also be withdrawing from the Constitution State, effective February 27th. Therefore, we expect to see the T&Cs soon updated again to reflect this.
Stake.us and High 5 Withdraw from Multiple States
Although sweepstakes casino operators tend to pull out of states now and then – usually due to increased legal scrutiny of some kind – withdrawing from so many at once is rarer. However, it follows similar news of High 5 pulling out of 8 states recently, and reflects a turbulent start to the year for the sweepstakes industry in general.
Despite slightly differing lists of excluded states, we can see that both Stake.us and High 5 are choosing not to operate in the 7 US states where traditional online gambling is legal. That’s Michigan, Connecticut, Delaware, New Jersey, Pennsylvania, Rhode Island and West Virginia.
The American Gaming Association (AGA) – which represents the traditional gambling industry – continues to state that sweepstakes sites unfairly compete with licensed gambling outlets. It’s pushing lawmakers, and even the new presidential administration, to outlaw black market operations, often including sweepstakes casinos in this category. AGA’s CEO Bill Miller, recently stated he wanted to see increased enforcement around “illegal” casinos that operate from within and outside of US borders.
Lawmakers and regulators in many states are doing just that. For example, the new West Virginia Attorney General recently issued subpoenas to multiple sweepstakes casinos. While it’s still unclear whether Stake.us was part of that list, this news certainly won’t have gone unnoticed.
Sweepstakes Casinos Still Operating in the Main
No definitive legal precedent has yet been set when it comes to the sweepstakes model in the US, and operators argue they are operating fully within sweepstakes laws. That said, many brands, especially larger ones like Stake.us, are increasingly choosing to play it safe. The theory is likely that withdrawing from states where there has been legal action in some shape or form will help avoid future problems. It could also signal to lawmakers that these brands are willing to cooperate to some degree and work within an ever-changing system.
Perhaps complicating matters is the fact that Stake.us is operated by Sweepsteaks Limited, a company registered outside the US, in Cyprus. Also, while legally separate, Stake.us shares branding and origins with Stake.com, which was founded in Australia.
All this said, it’s ultimately the players who lose out, and thousands of Stake.us customers from six states will now need to find alternative casinos. For players in affected states, our sweepstakes casino legal guide can help you, and each SweepsKings review features an up-to-date list of states you can play from.
Author: Jon Ridehalgh
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