Rafferty Domnick Cunningham & Yaffa, with co-counsel Seeger Weiss LLP and The Schenk Law Firm LLP, have filed a lawsuit in the Supreme Court of the State of New York against Stake and Coinbase.
The case has been filed on behalf of a young man who claims he was encouraged to gamble on offshore platforms despite it being illegal.
The plaintiff explains that he began gambling at age 13 after being exposed to gambling content platformed through live streams and social media influencers.
Many of these sites are illegal, and have been linked to misogyny or real-world crime.
The streamers themselves often explain to viewers how to bypass geolocation blocking software to access the offshore gambling platforms through VPN technology.
As these sites do not have KYC technology to block minors, this facilitates children to open accounts and lose money on the sites with no regulatory oversight.
Stake was also featured in a social media post from Donald Trump, drawing fresh attention to an offshore operator that is not licensed to offer online casino gaming or sports betting anywhere in the US.
Madeline Pendley, Rafferty Domnick Cunningham & Yaffa Lead Counsel, said: “This case is an important first step in holding these gambling platforms accountable.
“Gambling addiction in minors is steadily increasing, and it’s not happening by accident.
“The defendants who design and market these platforms know that if they can entice young people to gamble, they have a customer for life.”
The lawsuit explains that the plaintiff suffered severe gambling harm, financial losses, and long-term psychological harm during his teenage years.
This went on to affect his education, relationships with family members and required intensive, ongoing treatment.
Troy Rafferty, Rafferty Domnick Cunningham & Yaffa Shareholder, said: “Our client's adolescence was consumed by an addiction that these defendants engineered and profited from.
“His education suffered. His family relationships suffered. His mental health suffered. And while he was going through all of that, Stake.com was paying influencers millions of dollars to bring in the next generation of users.
“This lawsuit is about accountability, and we intend to see it through.”
The lawsuit brings claims under New York consumer protection laws, as well as common law theories including negligence and gross negligence
