Alabama has long maintained one of the most restrictive stances on gambling in the United States. While surrounding states like Tennessee and Mississippi have legalized lottery gaming, sports betting, and casinos, Alabama has repeatedly rejected efforts to expand legal gambling.
The conservative approach has now taken center stage thanks to a recent lawsuit filed against sweepstakes operator Stake.us.
The case challenges Stake.us’s operations in Alabama and highlights a broader resistance to gambling expansion.
What the lawsuit alleges
The class action was filed in the U.S. District Court for the Middle District of Alabama Eastern Division by Laura Hall and her minor child (J.C.) and on behalf of other players of Stake.us. The filing seeks damages for Alabama residents who paid and lost money or other things of value on Stake.us within the last six months.
The court has been asked to declare Stake.us operations unlawful and order corrections for harm caused. The lawsuit has been labeled as a class action but has not received that certification from the court.
The filing alleges that Stake.us has been deceptively marketing its service as a legal sweepstakes platform while it is really an unlicensed online casino provider.
This is the third lawsuit against Stake.us, as the company is involved in private cases in California and Illinois.
Current state of gambling in Alabama
Alabama is known for its anti-gambling laws, and as a resident, I can attest to how strict the state is on gambling services. There is no lottery system, though residents have been hopeful for one for years. Alabamians like myself travel to nearby Tennessee, Georgia, and Mississippi to purchase lottery tickets, accessible by crossing state lines.
There are no commercial casinos, online casinos, or sportsbooks in the state. The Poarch Band of Creek Indians operates Wind Creek tribal casinos, but services are limited to three facilities. The casinos also only offer Class II gaming, so players can only access bingo-based electronic games. There are no traditional table games or slot machines available.
I have a Stake.us account and was able to access it as of Tuesday, but I am unsure if this will remain the case. The lawsuit may cause Stake.us to limit players in Alabama. The operator has shown it’s not afraid to pull out of states where it isn’t smart to stay in the short term in the past.
How Alabama defines gambling — does it include Stake Cash?
The Alabama Code defines gambling broadly, which may not help the Stake.us defense in the recent filing. Gambling is defined in Alabama as when a person stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under their control or influence, upon an agreement or understanding that they or someone else will receive something of value in the event of a certain outcome.
Stake.us could argue that its members are using Gold Coins and Stake Cash to play, both of which have no real value. However, Stake Cash can be redeemed for real cash.
A history of controversy, raids
This lawsuit is not the first time that the legality of gambling has been debated in Alabama. Located in Shorter, VictoryLand is a facility that has been at the heart of the state’s gambling argument for decades. Originally operating as a greyhound racetrack, VictoryLand later upgraded to offer hotel stays and electronic bingo games.
The bingo operations soon caused an issue, with state regulators arguing that the games functioned like illegal slot machines. In 2010, acting Attorney General Troy King raided the facility. Attorney General Luther Strange raided it again in 2013, seizing over 1,600 machines and $263,000 in cash.
VictoryLand shut down for a few years before reopening in 2016 and still functions today with limited electronic bingo games. Law enforcement keeps a close eye on the gaming facility, and its rocky past shows just how unevenly gambling laws are enforced in Alabama.
It also reflects the ongoing struggle between local communities that rely on these operations for jobs and revenue and state officials who remain firmly against expanding gambling.
The broader impact of Alabama’s Stake.us lawsuit
Alabama’s lawsuit against Stake.us highlights a bigger fight over how gambling should be handled and who gets to control it. While much of the country embraces new forms of betting — from mobile sports apps to casinos — Alabama remains firmly rooted in a prohibitionist tradition. The case will test how far the state can go in regulating online platforms and whether the model of online sweeps casinos can withstand legal scrutiny.
Meanwhile, venues like VictoryLand and Wind Creek Casinos continue to operate under narrow legal allowances, reminding everyone just how limited gambling in Alabama truly is. With few signs of legislative change, residents and operators alike must navigate a legal environment defined more by prohibition than progress.
