A federal judge has ruled that a proposed class action against Stake, Kick, and Drake cannot proceed in court—for now—after finding the plaintiffs are bound by Stake's arbitration agreement. The judge granted Stake's motion to compel arbitration, denied its motion to dismiss as moot, and put the remaining motions on hold pending arbitration.
U.S. District Judge Leonie M. Brinkema granted Stake's Motion to Compel Arbitration and Stay Proceedings on July 30, according to a court order filed in the case. The civil action has been stayed pending the conclusion of arbitration, and the court directed the clerk to remove it from the active docket.
The suit was filed in the U.S. District Court for the Eastern District of Virginia, Alexandria Division. The plaintiffs brought a four-count putative class action complaint seeking remedies for harm they allegedly suffered using Stake's platform.
The plaintiffs alleged that Stake misleads consumers while allowing real money wagering disguised as virtual currency play.
The platform supposedly advertises that it does "not offer real money gambling," that "no purchase or payment is necessary to participate or play [Stake] games," and that it provides "the ultimate social, safe and free gaming experience," but the complaint says these statements are false because users buy Gold Coins that are always bundled with Stake Cash, which can be cashed out one to one for U.S. dollars.
Among the defendants named in the suit were Stake, the streaming platform Kick, Drake, and Adin Ross.
Central to the ruling was the arbitration agreement embedded in Stake's Terms and Conditions.
Stake owns and operates an online platform where users can play casino-style games including slots, table games, scratch cards, and live dealer games.
