Stake.us Can't Force Arbitration, Judge Rules

Stake.us Can’t Force Arbitration, Judge Rules

Casino

By lines

July 20, 2026

Judge John Tunheim denied the Stake.us arbitration bid in a Minnesota gambling lawsuit in July 2026. The ruling keeps a proposed class action alive in federal court.

Judge Says Arbitration Clause May Be Void

Judge Tunheim sits on the U.S. District Court for the District of Minnesota. Judge Tunheim denied Stake.us’s motion to compel arbitration in a proposed illegal gambling class action. Sweepsteaks Limited, a Cyprus-based company, operates the Stake.us platform. Law360 first reported the ruling on July 2, 2026.

Judge Tunheim ruled it “still isn’t clear whether the terms and conditions containing an underlying arbitration agreement are valid.” The arbitration clause sits inside those same terms and conditions. Minnesota law can treat contracts that violate gambling statutes as void. A void contract cannot carry an enforceable arbitration clause.

The Minnesota case joins a wider legal fight against Sweepsteaks Limited. Gambling Insider counted at least nine lawsuits against the company in February 2026. Those cases span Illinois, California, Minnesota, Missouri, Mississippi, New Mexico, Utah, Virginia and Ohio. Plaintiffs in each case argue Stake.us runs unlicensed gambling behind a sweepstakes label.

Sweepstakes casino litigation extends well beyond Stake.us. Sweepedia counted more than 100 active lawsuits against sweepstakes operators in March 2026. VGW Holdings, the parent of Chumba Casino and LuckyLand Slots, faces the largest share of those cases. VGW settled a Kentucky class action for $11.75 million.