A federal court in Minnesota has rejected Stake’s arbitration bid after the operator was accused in a class action lawsuit claiming that it offered illegal online gambling in the state. Stake filed a motion to compel arbitration in the proposed class action; however, the court ruled that the operator didn’t provide enough evidence that there
A federal court in Minnesota has rejected Stake’s arbitration bid after the operator was accused in a class action lawsuit claiming that it offered illegal online gambling in the state.
Stake filed a motion to compel arbitration in the proposed class action; however, the court ruled that the operator didn’t provide enough evidence that there was a valid arbitration agreement.
The case revolves around a complaint filed on behalf of Chris Wolters, which includes 5 causes of action. According to the plaintiff, Stake violated the Minnesota Consumer Fraud Act, the Minnesota False Statement in Advertising Law, and the Minnesota Deceptive Trade Practices Act.
First filed in August 2025, the lawsuit claims that Stake misrepresented its products and illegally offered online gambling in the state. As a result, Wolters gambled and lost over $80,000 between 2023 and 2025.
U.S. District Judge John Tunheim stated:
“If Stake’s Terms and Conditions are a contract entered into in violation of Minnesota’s gambling statutes, the Court must treat that contract as invalid and nonexistent. Wolters has alleged facts demonstrating that Stake’s Terms and Conditions are an illegal gambling operation, and Stake has not yet presented any evidence to the contrary.”
Vildan Teske, who serves as the plaintiff’s attorney, commented:
“We are pleased with the Court’s decision and look forward to litigating this case on behalf of our client and all of the other Minnesotans who have been impacted by Stake.us’ illegal gambling website.”
The judge further explained that the arbitration clause depended on both sides’ agreement to its conditions and stated that Wolters hadn’t directly agreed to the provision.