A New Stake Lawsuit Identifies Coinbase in a Crypto Payment Role and Alleges Underage Gambling

According to a recent complaint filed in New York, Stake's international cryptocurrency casino and U.S.-based sweepstakes platform work together to circumvent legal protections and permit underage gaming. Coinbase is charged with supplying the financial infrastructure that made this possible.

The lawsuit focuses on Stake's US access and offshore model.
"John Doe" filed the complaint, which portrays Stake's operations as an overseas gambling enterprise that is nevertheless reachable by Americans through its Stake.us sweepstakes website. Because of this, it has been able to evade regulatory limitations.

As stated in the document:

This lawsuit concerns the marketing and management of Stake.com, an illicit offshore gambling business that targets and attracts minors.

The claim that the plaintiff started gambling as a juvenile and was able to keep doing so over time is at the heart of the case.

The plaintiff was "recruited to participate in underage gambling... and then routed to a U.S.-facing crypto onramp," according to the complaint.

Additionally, it claims that this had a "devastating" effect on the plaintiff, resulting in "years of financial losses and a severe addiction-related injury, all incurred before Plaintiff was legally allowed to gamble."

Founders and Stakeholders Described as a Unified Operation
Several organizations that fall under the Stake umbrella are named as defendants in the complaint. They claim centralized ownership and management over the entire organization and include founders Bijan Tehrani and Edward Craven, as well as Stake.com, Stake.us, and Easygo Entertainment.

According to the filing:

Together, the defendants functioned as a cohesive system that enabled frequent offshore gambling.

"A complete unity of ownership and interest across the Stake Defendants" is another assertion made.

Coinbase is known for making payments easier.
The case focuses on how cryptocurrencies can be used to circumvent traditional banking regulations and promote gambling. The financial middleman is identified as Coinbase.

According to the petition, Coinbase directly assisted with transactions related to gambling:

Coinbase, the defendant, intentionally provided the payment infrastructure and routing that enabled this kind of betting.

Additionally, the complaint claims that Coinbase made it possible to evade regulations:

The compliance evasion method required to get around New York State's anti-gambling laws was supplied by Coinbase.

The alleged activity's mechanics are also highlighted in the lawsuit, which claims Coinbase "facilitated the conversion and transfer of funds used for illegal gambling by a minor."

The Court Issues a Show Cause Order
Early procedural action has already been taken in the case. Judge Dakota Ramseur issued an Order to Show Cause on April 14, scheduling a hearing so the plaintiff may defend the desired relief.

As the lawsuit proceeds in the New York Supreme Court, the order establishes a hearing date of May 19.

A portion of the larger wave of stakeholder lawsuits
Stake and its sweepstakes casino, Stake.us, are facing an increasing number of legal problems, including the New York complaint.

It lists allegations that the sweepstakes platform is an illicit online casino from Illinois, Alabama, and Missouri. California, Minnesota, Mississippi, New Mexico, Utah, Virginia, and Ohio are among the states where the platform has received complaints.

The Los Angeles City Attorney's 2025 enforcement action against Stake.us and its partners is also mentioned in the case. According to that allegation, the platform functions as an illicit gambling business and aims to recoup residents' losses.

Additionally, Stake and five other significant sweepstakes casino providers were recently sued civilly by Baltimore.

A recurring legal argument has surfaced in all of these cases: sweepstakes casinos operate as covert real-money gaming venues. Nonetheless, courts have already ordered arbitration or dismissed a number of lawsuits.