Stake.com - Lawsuit, Breach of TOS, Refund of Net Losses and Nonexistent Compliance

[edondoko]

This is a copy-paste post from a thread of mine on bitcointalk.org
*snip*

[maxd says: please don’t copy-paste material from other forums, as specified in the Forum Rules , item 1.7]

 

[L&L-Jan]

3. Violation of Swiss Gambling Laws

In that case: dont sign up? Even worse: don't take a bonus.

Reminder: Offshore casinos like Stake.com have little regard for the gambling regulations in your specific country.

Makes sense, it is not applicable to your country as they aren't licensed there.

I already got 2 settlements with other Casinos although the net losses

So you are doing this so on purpose. Meaning your are either a gambling addict or a person who likes to waste their time. If you know the casino is not regulated, dont sign up. If you do, everything that happens after is the concequence of your DECISION!

If you are a problem gambler:

You do not have permission to view link Log in or register now.

Don't expect any form of sympathy on this forum. Users here are experienced and responsible gamblers that know how to make a decision for their own, and do not moan about the decision afterwards.

Grow up man, women, non binair, idk - can be anything now a days.

 

[edondoko]

Thanks, Jan, for the quick reply. At the time, I had no idea that Stake was banned in my country or that regulatory bodies like these even existed. I want to emphasize that my actions were not intentional. Why would they be?

You are correct that I should face the consequences of my own actions to some extent. However, considering what Stake has done regarding compliance, I’m deeply concerned about the impact this could have on other players. Personally, I’ve learned my lesson and will never deposit crypto into a shady offshore casino again. But that doesn’t mean I shouldn’t advocate for others, help prevent them from making the same mistakes, or fight for reimbursement if they were similarly affected.

To answer your question about the applicability of regulations in my country:
Let’s not forget that these casinos claim to be licensed by "official" licensing body's (a joke, honestly), which means they are obligated to adhere to the licensing body’s rules. These rules include strict compliance measures, particularly ensuring that players from prohibited countries cannot register or play in the first place. While it may sound good and fair in theory, the reality is that probably 95% of casinos out there don’t genuinely care about their players or the rules set by their licensing body's. Most illegal practices either go unreported to the appropriate regulatory body or aren’t pursued aggressively enough to form a proper claim against the casino.

This post isn’t about me trying to sound like a victim, a maniac, or a gambling addict. I will recover from these losses in foreseeable time. My goal is to shed light on the issue and attract other victims because I know there are many, even if they aren’t active on these forums. I don’t need sympathy, and I understand that most members here—including admins—might have a straightforward response or opinion to this situation, similar to what the casino would say.

That said, legal action is still very much on the table and will absolutely be pursued in this case. I’m currently waiting for a response from the ESBK before moving forward with the next steps, and I’ll keep everyone updated.

For now, my advice would be to do thorough research before even considering registering with these casinos. Inform yourself *snip* And, of course, only gamble with money you can afford to lose.

[maxd says: sending our readers to other forums is uncool. Please don’t.]

 

[slot_zombie]

5. The Financial and Legal Stakes
Due to my uncontrollable gambling addiction, which I failed to seek help and advice for despite a difficult financial situation, I have lost approximately $40,000 USD—a devastating amount, especially as I was unemployed at the time. Most of this money came from my unemployment insurance, making the situation even more troubling. On average, I deposited 75% of my monthly income, amounting to $1,000 to $3,000 per paycheck, and lost it within a week.

Fixed that paragraph for you.

 

[L&L-Jan]

Thanks, Jan, for the quick reply. At the time, I had no idea that Stake was banned in my country or that regulatory bodies like these even existed. I want to emphasize that my actions were not intentional. Why would they be?

Cool, problem solved. You participated and didnt win. Happens to me daily.

 

[edondoko]

Cool, problem solved. You participated and didnt win. Happens to me daily.

I’m 100% with you on taking accountability for gambling and losing, but my case still stands valid. Prove me wrong, and I might stop pursuing this situation (spoiler: that’s definitely not going to happen).

For the sake of this thread, if your response is simply that I can’t accept a loss, that I’m delusional, or any other personal attack, please refrain from commenting. Instead, provide real answers to my questions or present counterpoints to my allegations, backed by a reasonable background. Cite specific articles in the ToS, or any applicable law in Switzerland or Curacao. I’m sure many outside Switzerland aren’t familiar with the local laws, and instead of focusing on my personality, supposed lack of understanding, or whatever else, I would appreciate a more informed perspective.

Let’s approach this from a neutral standpoint. Offer opinions or advice grounded in actual cases that are similar—whether they’ve been resolved or are still pending. I don’t see any need for personal assumptions here; they don’t contribute to a meaningful discussion.

I’m currently waiting for the ESBK to respond and will act accordingly once I hear back. They will most likely launch an investigation into Stake.com, focusing on their operations before implementing mandatory KYC Level 2 verifications (as of now, if I recall correctly). Such an investigation could expose a host of compliance failures on the casino’s part. If this happens, the findings would either become public or could be made public during any legal proceedings against Stake.com.

Once a legal case is filed, I’m confident it will grab their attention.

All I want is for them to address my questions directly, but they simply can’t because doing so would reveal the issues in their system.

Just like you, running and operating casinos (e.g., L&L Group), you are obligated to follow the rules set by the legal body or jurisdiction where you operate. So why not give straightforward answers about such alleged wrongdoings and potentially avoid a civil lawsuit altogether?

In the end, I stand by the law of my country, just as Stake clings to its ToS. Getting my money back may be difficult, but I’m more than willing to assist any regulatory body or government agency to ban such platforms. This isn’t just about me—it’s clear they’ve likely done this to more players than they’d ever admit.

My ultimate goal is to ensure no Swiss resident can register on that platform, whether through a VPN or any other means. Switzerland has strict laws, and the ESBK explicitly stated that Stake assured them it was impossible for Swiss players to register—whether directly or through a VPN. So, if that’s the case, how is my situation even possible? Exactly.

They still can’t provide an answer, even after I’ve formally requested one.

 

[L&L-Jan]

Just like you, running and operating casinos (e.g., L&L Group), you are obligated to follow the rules set by the legal body or jurisdiction where you operate.

Thats because were fully regulated and a crypto casino cant be properly regulated. So if you join a crypto casino, you know you play unregulated and therefore are not protected by your local laws or regulations.

 

[justdoit]

I dont thing you can just open Stake account without using VPN, that min you open VPN you know is illegal to play

 

[edondoko]

Thats because were fully regulated and a crypto casino cant be properly regulated. So if you join a crypto casino, you know you play unregulated and therefore are not protected by your local laws or regulations.

So, are you suggesting that every crypto-casino is essentially a scam, and that their licenses hold no real weight? I agree with that perspective to some extent, but it's not like I was hacked and can't figure out who took my money. The reality is, these casinos have systems in place to target users—marking them with red/green flags based on whether they’re profitable or losing. I sincerely hope, and am confident, that your casinos don’t operate this way—though in today’s climate, who can trust anything anymore?

 

[edondoko]

I dont thing you can just open Stake account without using VPN, that min you open VPN you know is illegal to play

I’ve been using VPNs for a long time, and the entire purpose of using one is to mask my location. Why would I deactivate it to access a site? That would defeat the entire purpose of using a VPN.

Moreover, can you explain how Stake assured the ESBK that, even with the use of a VPN, I wouldn’t be able to register, play, or access the site in any way? Yet, I was still able to do so. I don’t think anyone can answer that, not even Stake itself. This is clearly a breach of laws, their own Terms of Service, and possibly several other legal regulations.

Additionally, even with the VPN, I did not use fake or misleading information to sign up. I provided my real name, address, and even left my Swiss phone number, which clearly starts with +41. So, how could they not recognize that I was playing from a restricted region? This seems to indicate a complete lack of care or due diligence on their part.

Maybe they’re trying to prevent further allegations or legal action by implementing KYC2, but in my case, I still have the right to pursue legal action. However, that is not the focus of this thread at the moment. If I do decide to proceed with legal action, I will consult with my lawyer to see if it’s possible to share all the information. In most civil lawsuits, there could be an Offenlegung (disclosure) to create a reference for future lawsuits involving similar situations like this.

 

[justdoit]

I’ve been using VPNs for a long time, and the entire purpose of using one is to mask my location. Why would I deactivate it to access a site? That would defeat the entire purpose of using a VPN.

Moreover, can you explain how Stake assured the ESBK that, even with the use of a VPN, I wouldn’t be able to register, play, or access the site in any way? Yet, I was still able to do so. I don’t think anyone can answer that, not even Stake itself. This is clearly a breach of laws, their own Terms of Service, and possibly several other legal regulations.

Additionally, even with the VPN, I did not use fake or misleading information to sign up. I provided my real name, address, and even left my Swiss phone number, which clearly starts with +41. So, how could they not recognize that I was playing from a restricted region? This seems to indicate a complete lack of care or due diligence on their part.

Maybe they’re trying to prevent further allegations or legal action by implementing KYC2, but in my case, I still have the right to pursue legal action. However, that is not the focus of this thread at the moment. If I do decide to proceed with legal action, I will consult with my lawyer to see if it’s possible to share all the information. In most civil lawsuits, there could be an Offenlegung (disclosure) to create a reference for future lawsuits involving similar situations like this.

but if you play on Swiss casino they will not let you use VPN to play, I use VPN everyday, sometimes I try to enter UK casino I forget VPN on, casino massage will pop up you have VPN on, even if VPN is on UK ip, 99% of casinos they know what pc laptop phone you use they know is you, We all know stake and other crypto casinos are illegal, if you trying to get your money back that is diffrent story, dont gamble lose and try to get your money back, I won on stake $28k they paid me right away, 3 month later they block my account, but they never block withdraw only deposit blocked

 

[edondoko]

but if you play on Swiss casino they will not let you use VPN to play, I use VPN everyday, sometimes I try to enter UK casino I forget VPN on, casino massage will pop up you have VPN on, even if VPN is on UK ip, 99% of casinos they know what pc laptop phone you use they know is you, We all know stake and other crypto casinos are illegal, if you trying to get your money back that is diffrent story, dont gamble lose and try to get your money back, I won on stake $28k they paid me right away, 3 month later they block my account, but they never block withdraw only deposit blocked

ofcourse because as Jan said, these casinos operate within their given rules and have to remind you of that. Stake does not do that for obvious reasons

 

[misstrouble]

You do this purposefully. U are in roobet chat too. Still gambling but saying you'll sue them bc you aren't allowed to play there.

 

[edondoko]

You do this purposefully. U are in roobet chat too. Still gambling but saying you'll sue them bc you aren't allowed to play there.

PAB in Progress is all I can say

 

[L&L-Jan]

You do this purposefully.

They all do, Germans, Swiss, Austrians. Really frustrating.

As an example: I go to fun casino, where of today i have 80 pages of 25 results. All players from "Andorra". When I go through the accounts I can only find: German, Austrian and Swiss IPs.

They try to play free spins, wont work. They try to deposit for a free gamble, won't work either - we have specific rules imposed.

Its really pathetic. Take responsibility and move on with your gambling problems. Blaming everything and everyone, except yourself.

 

[justdoit]

They all do, Germans, Swiss, Austrians. Really frustrating.

As an example: I go to fun casino, where of today i have 80 pages of 25 results. All players from "Andorra". When I go through the accounts I can only find: German, Austrian and Swiss IPs.

They try to play free spins, wont work. They try to deposit for a free gamble, won't work either - we have specific rules imposed.

Its really pathetic. Take responsibility and move on with your gambling problems. Blaming everything and everyone, except yourself.

I lost this week on L&L will you refund my money but when i win let me keep my winning

 

[edondoko]

They all do, Germans, Swiss, Austrians. Really frustrating.

As an example: I go to fun casino, where of today i have 80 pages of 25 results. All players from "Andorra". When I go through the accounts I can only find: German, Austrian and Swiss IPs.

They try to play free spins, wont work. They try to deposit for a free gamble, won't work either - we have specific rules imposed.

Its really pathetic. Take responsibility and move on with your gambling problems. Blaming everything and everyone, except yourself.

Well, good for you for actually enforcing restrictions properly—I won’t question your casino’s legal compliance or reputation. But the whole "Don’t play if you can’t handle losing" argument doesn’t hold up in cases like this, where casinos knowingly break their own rules, allow players from restricted jurisdictions to deposit and gamble, and then only enforce restrictions when it benefits them by confiscating winnings.

This isn't about simply accepting losses—it's about the legal and ethical implications of allowing bets to be placed in the first place. Any casino that knowingly permits unverified players from restricted regions to gamble, despite being aware of their jurisdiction from the KYC Level 1 process, is acting in bad faith. It’s not just a business decision—it’s a deliberate loophole exploitation.

Recovering lost funds will be difficult, maybe even impossible, depending on the outcome of legal action. But that doesn’t change the fact that the casino willingly violated licensing laws and regulatory requirements. The reason so many players complain about funds being confiscated under the guise of ToS enforcement is that this practice is inherently unfair—casinos gladly accept deposits and allow unrestricted play, yet conveniently cite their terms to justify seizing winnings while keeping losses intact.

I’m sure this issue has been discussed within your legal team, especially in the UK, where there’s at least some regulatory oversight. Unlike certain offshore operators, licensed casinos in the UK and Switzerland are held to legal standards that make exploiting such players less viable or just not worth the risk.

That said, I firmly believe that in the next 5-10 years, we’ll see a significant shift. Crypto casinos, in particular, will face mounting legal challenges, hefty fines, and potentially even shutdowns for disregarding regulatory frameworks. The current loopholes won’t last forever—sooner or later, enforcement will catch up, and these exploitative practices will be forced out of the industry.

And regarding the comment from misstrouble, let me clarify something—I never said I don't accept my losses. (This also answers Jan.) I fully accept them, but why in the world shouldn't I pursue legal action when the casino does the exact same thing every time I lose?

Do they pay taxes on my losses (which are their wins)? Do they contribute to AHV or any form of player protection? So many regulatory aspects come into play here, yet people just say, "Yeah bro, accept your losses and move on," or "Grow up." That kind of argument doesn’t change the fact that this issue keeps happening. I've said multiple times that I accept my losses, yet some of you apparently can’t read.

If the only counterargument you have is to refer to the ToS, call me delusional, a gambling addict, a kid, or anything else that doesn’t actually address the issue—then just refrain from commenting because that’s not even relevant to the discussion.

At the end of the day, my main goal here is for other players to read this thread and understand that if they ever win big at a crypto casino, they will likely get screwed over with the same ToS excuse. Since there was never a legally binding contract in the first place, they’ll seize your winnings without hesitation—but your deposit should technically be returned.

I've never had withdrawal issues with Stake or Roo—not once. But that’s because my withdrawals never exceeded $2k–$5k. That’s peanuts in casino money. However, I am 100% certain that if I ever hit a $50k+ withdrawal, my account would be immediately blocked, and they’d cite the same argument they always do. And honestly? I wouldn’t even be surprised.

You claim that we (the players) are doing this purposefully, which might seem somewhat true to a degree, but this goes both ways. Players take on the risk of confiscated winnings, while casinos take deposits knowing full well they’ll never have to pay out if things go their way. No casino in its right mind would ever think about returning a single cent once they decide to block you.

That’s exactly why I’m making this as big as possible—so that anyone who takes 5 minutes to research before playing (which I didn’t at the time) will know that they risk losing everything if they ever win big.

I mean, there are even approved casinos on Casinomeister—Winz.io, for example—that are supposedly okay for me to play at. Well, it’s definitely not allowed. So if I go play there and they confiscate my winnings, who is at fault? Me, or Casinomeister for saying it was fine?

Of course, me—because in the end, the player is always at fault. Nevertheless, the casinos misusing these loopholes are at fault too, they just have something to hide under, simple as that.

 

[slot_zombie]

Stake never confiscates winnings in that situation, so your argument is null. If they catch you playing from a restricted country they will simply put your account in withdraw-only mode and not allow further bets.

I should know because they busted me after many years so I packed up my things, withdrew my balance and went on my way. Did I try to get my deposits back - no. Why should I be entitled to them? I gambled and lost fair and square

 

[Avernite]

The recent behavior from experienced members is actually really disappointing.

Firstly the poor lady being ridiculed in the recent DelOro thread, to this. If you don't have anything constructive to say, then don't say anything at all.

To the OP, good on you for calling Stake out. While players should take more responsibility, that doesn't absolve casinos from also doing their part.

Personally I'd just accept the loss and move on as the added stress wouldn't be worth it to me, but I admire the effort. I wish you the best of luck.

 

[satchnz]

So I get this pop up when I set my VPN to Switzerland and try to access Stake (the dot com site).

Then when I set my VPN to a non restricted location, I can see clearly in the terms of service that Switzerland is a restricted location.

Looks clear to me that Stake is not available to Swiss players.

Do we know which location @edondoko set their VPN too? Having to turn a VPN on to access a website (especially an online casino) should be enough to tell someone they are not allowed to access it.*

What am I missing?

*I pretty much only play at crypto sites now with a VPN from the UK and I fully understand the risks I’m taking, and the consequences if I get caught out (i.e. losing my balance and any winnings).

 

[L&L-Jan]

@satchnz well done, didnt even thought of checking that. So OP is in the wrong.

 

[edondoko]

@satchnz

I’ve been using ExpressVPN with the Switzerland Server 2, meaning my IP was always from Switzerland. At the time, I could play without any issues. Now, suddenly, Stake has decided to tighten its compliance, but back then, it was a completely different story.

I know for a fact that I wasn’t in the wrong. If I had purposely hidden my identity when signing up, that would be one thing—but I didn’t. I’ve used a VPN for years, always set to Swiss servers, mainly for privacy and to access banking apps that don’t work with foreign IPs. Sometimes, I’d randomly switch to other locations, and out of the five countries I tested, only one (I think it was Mexiko or USA) actually had a geoblock.

But here’s the real issue: Stake allowed me to verify my account and play. They didn’t block me during registration. They didn’t stop me from completing KYC 1. They didn’t warn me when I deposited. And they were more than happy to take my money. Now, all of a sudden, they’re acting like I was never supposed to be there in the first place.

If they were serious about blocking Swiss players, why did they let me register with my full name, address, phone number, and email? Why did they allow a German-language chat where people openly said they were from Switzerland? It’s not like they weren’t monitoring the chat—they absolutely do. And let’s be real, with today’s AI tools, they could’ve flagged restricted-country mentions in seconds.

What Changed?​

After everything that happened with Stake, I started looking into crypto casinos where I'm actually allowed to play. I even verified myself to KYC Level 3 before depositing so this shit won't happen again but this was before I read the GSG article on gambling laws in Switzerland and basically solely relying on the trust from the casino, well turns out these casinos don't give a fuck. I have an ongoing PAB on a similar case, which I can’t discuss yet. But depending on how that turns out, there’ll probably be another thread soon(or not).

ESBK Investigation​

Once I realized I wasn’t allowed to play according to the GSG, I contacted the ESBK (Swiss Gambling Regulator), and they told me they’re launching an investigation into Stake soon if I file a complaint

Under Swiss law, both deposits and winnings from an unlicensed casino are considered illegal funds—which means Stake’s profits from Swiss players could be seized under Article 70 of the Swiss Criminal Code.

Here’s what they told me:

"Denn in der Schweiz gelten auch Einsätze von Spielenden als Gelder, die im Zusammenhang mit strafbaren Handlungen stehen, da das Casino im Falle einer Widerhandlung gegen das Geldspielgesetz finanziell durch die Einsätze profitiert hat. Diese Einsätze gelten demnach als illegale Einnahmen, die gestützt auf Art. 70 f. StGB einzuziehen sind."

Translation: My deposits are considered illegal funds, and in a criminal case against Stake, they could be seized at any time.

The ESBK also confirmed that Stake had a Swiss Customer Policy effective on January 1, 2023—which means they officially acknowledged that Swiss players weren’t supposed to be on their platform. But here’s the question:

If this policy was in place, why was I (and likely thousands of other Swiss players) still able to deposit and gamble?

Even the ESBK doesn’t know if it was possible to register with a Swiss address before 2023. But if Stake claims Swiss players were always blocked or atleast from the effectiveness of the policy how do they explain my account and my losses? They can't have it both ways. Obviously the people from the Compliance Department either are incompetent or straight up not giving a fuck about the consequences if they won't just settle with me. I mean based on this answer alone there's enough for players in the same boat to contact their lawyer and basically start a civil lawsuit and also start a criminal investigation with the ESBK.

It only needs one genuine concerned and actual legal brain of a compliance member to read this post to its full extent and I'm sure this post would be taken down in hours because of an offer I would get from them that would basically void this thread.

What’s Next?​

I’m currently waiting for Stake to fulfill my GDPR request—they have until February 28 to provide my data. If they don’t, I’ll give them a five-day extension. If they still ignore it, I’ll file a GDPR violation complaint.

Beyond that, once the ESBK launches its criminal investigation after sending them my proof or request/complaint, they’ll be able to request data on all Swiss players registered since January 1, 2023—including deposits, winnings, and losses. Since those funds are ruled illegal, they are going to be confiscated from Stake. Given how many Swiss players were on the site, I wouldn’t be surprised if we’re talking about upwards of 50 million in Deposits alone.

Final Thoughts​

I get it—VPN use is against the Terms of Service. And now that I know the situation, I won’t play anymore. And even if I did, I’d accept the consequences of any losses or confiscated winnings or similiar stuff like account blocked or bonuses not paid out because of the obvious.

But that’s not the issue here.

Stake is acting like simply updating their ToS or citing it retroactively makes this problem go away. That’s not how it works. They knew my real location. Their KYC 1 process confirmed I was a Swiss resident. And if KYC 1 wasn’t valid, why did they let me play with it?

Now, they don’t even allow deposits without KYC 2. Why do you think that is? Could it be because of complaints just like this one? Again you tell me.

Thanks anyways for actually bringing up stuff I really have to defend myself from instead of just saying you're a idiot who lost money and now want's it back.

 

[Khan4ik20]

ofcourse because as Jan said, these casinos operate within their given rules and have to remind you of that. Stake does not do that for obvious reasons

yep, however it's your responsibility to know where you gamble, and the fact that you aren't protected and nobody can help you if there's no license.
I withdrew large amounts from stake.com over a year ago, but my life is all legit, and Binance was happy with what I sent them.

 

[Avernite]

@satchnz well done, didnt even thought of checking that. So OP is in the wrong.

The geoblock may have been applied after the fact.

What doesn't sit right with me was the fact he was able to select a "forbidden" country on sign up, and pass the first verification step using documents from that country.

If this is indeed true, then the casino is in the wrong for knowingly accepting players who shouldn't be allowed to play. Even if you want to argue that the player should bear responsibility, (and I agree to an extent) two wrongs don't make a right. It certainly doesn't absolve the casino of wrong doing here.

I experienced something similar years ago at Red Queen casino when they just opened up. Selected New Zealand, deposited, played, won a good chunk of money and went to withdraw.

They said they weren't allowed to accept my play due to only having a UKGC license, but said they'd honor my withdrawal and closed my account (actually getting the money took about 3 months, but that's another story).

 

[essuk]

Sorry im confused. Havent you said that you arent after money and are just trying to help protect players? Or did I misunderstand? If I did apologies but could you explain how Ive misuderstood your previous messages such as

"At the end of the day, my main goal here is for other players to read this thread and understand that if they ever win big at a crypto casino, they will likely get screwed over with the same ToS excuse."

How do you tally that with your last email which seems to seek a monetary payoff and says thread will be taken down if they settle with you.

"It only needs one genuine concerned and actual legal brain of a compliance member to read this post to its full extent and I'm sure this post would be taken down in hours because of an offer I would get from them that would basically void this thread."

If youre so interested in protecting players why would you take down the info in return for a payoff?