Stake Banned In 18 States: Why I Switched To Moonbet

Stake is banned in 18 states. Maryland and Minnesota are advancing bills to ban the entire sweepstakes casino model. I’ve been testing crypto casinos since 2017, and I’ve never seen this many jurisdictions move against one platform type this quickly.

The issue is structural. Stake operates as a sweepstakes casino, which relies on legal interpretations that states are systematically rejecting. When Super Group pulled out of the U.S. market voluntarily before legislation even passed, that told me everything.

I needed to find alternatives that don’t rely on the same regulatory loopholes. Over the past few months, I tested six platforms. Most just shifted from one gray area to another. Moonbet was different. Licensed crypto casino, no sweepstakes mechanics or state restrictions.

I ran identical test sessions on both platforms to compare withdrawal speed, effective returns, and whether the numbers matched what was advertised. What I found was… surprising.

The Problem: Why Stake Is Getting Crushed by Regulators

Let me explain how Stake actually works.

The platform operates as a sweepstakes casino. That means it uses two currencies: Gold Coins (free, no cash value) and Stake Cash (redeemable for crypto). You buy Gold Coin bundles, and the platform gives you free Stake Cash as a “promotional bonus.” You play with both, and when you win, you redeem Stake Cash for real money.

Regulators looked at this and said, “That’s just gambling with extra steps.”

The Los Angeles City Attorney filed a lawsuit in September 2025 claiming Stake “operates an illegal gambling business in California under the guise of a free sweepstakes business.” The suit accuses the platform of violating California’s Unfair Competition Law by exchanging virtual currency for cash prizes without proper licensing.

Here are the states where Stake stopped operating as of March 2025:

Arizona
Connecticut
Delaware
Idaho
Kentucky
Louisiana
Maryland
Michigan
Montana
Nevada
New Jersey
New York
Pennsylvania
Rhode Island
Vermont
Washington
and West Virginia.

California went further. Governor Gavin Newsom signed Assembly Bill 831 into law, banning sweepstakes casinos entirely effective January 1, 2026.

Maryland’s House Bill 295 would make operating these platforms a criminal offense. Violators face fines of $10,000 to $100,000, plus prison terms of up to 3 years. Minnesota’s Senate File 4474 extends liability to payment processors, game providers, and media affiliates.

The Sweepstakes Casino Trap

I’ve tested sweepstakes platforms for years, and they all share the same fundamental problems.

Regulatory uncertainty

It means your access vanishes without warning. I watched players in New Jersey, Pennsylvania, and Delaware lose access mid-session on March 21. One minute, they were playing blackjack. Next, their accounts were frozen.

Withdrawal friction is constant

I pulled up AskGamblers complaint boards before writing this. Gold and Platinum VIP members are getting hit with surprise KYC requests for four-figure payouts despite having verified accounts for years. When I tested a $1,400 Stake Cash withdrawal, the platform demanded three separate ID documents and took six days to process.

Game providers are abandoning ship

Pragmatic Play, Evolution, and Hacksaw Gaming removed their entire libraries from Stake California operations in September 2025. When the studios pulling out are the ones supplying your best games, your platform is legally radioactive.

Moonbet: A Different Approach

Moonbet operates as a licensed crypto casino rather than a sweepstakes platform. This distinction is important. You deposit cryptocurrency, play games, and withdraw crypto. I’ve covered the full testing process in our Moonbet crypto casino review for 2026.

The platform launched in late 2025 and holds an Anjouan Gaming License. David Jenkins, the founder, is active on X and Telegram. That level of visibility is unusual for offshore platforms.

I tested the signup process. Connected MetaMask, and I was inside in about 40 seconds without email, password, or account form. You might need to use a VPN depending on your region.

The game lobby shows RTP percentages on each tile before you click into a game. I compared several Pragmatic Play slots, such as Happy Net and 24D Spin, without opening help menus. On Stake, you need to dig through info panels to find the same data.

Moonbet supports 50+ cryptocurrencies without platform fees on deposits or withdrawals. Also, there are no deposit or withdrawal limits. Deposits credit after one blockchain confirmation.

What Makes Moonbet A Great Alternative?

I tested both platforms with the same approach: deposit, run sessions, withdraw, and compare the actual numbers against what’s advertised.

KYC Requirements

Moonbet doesn’t require identity verification for withdrawals under $2,000. I tested this with two separate withdrawals to verify the threshold. First: $1,920 in ETH. Second: $1,450 in Solana. Neither required documents.

The ETH withdrawal cleared in 4 minutes and 13 seconds. No manual review, no compliance hold.

For comparison, when I tested a $1,400 Stake Cash withdrawal on Stake, the platform requested three ID documents despite having a verified account. Processing took six days.

The difference matters if you value faster access to funds and fewer verification steps.

Customer support responded at 1:15 AM when I messaged at 1:10 AM asking about Evolution live dealer availability. The answer was accurate and detailed.

Better Effective RTP Through Moonrake and Moonback

This is where the math gets interesting. Moonbet’s reward system improves your effective RTP on every bet through two mechanisms: Moonrake and Moonback.

Example: You wager $100 on a game with a 1% house edge. Your Moonrake return is $0.25. That amount goes directly to your balance with no wagering requirements.

This compounds across your session. Over 1,000 hands of blackjack at $10 per hand with a 0.5% house edge, you’d accumulate $12.50 in Moonrake alone. Add that to standard game RTP, and your effective return increases measurably.

If you lose $500 in a session at Contender tier, you receive $20 back (4% Moonback). At the Apex tier, that same $500 loss returns $40. Combined with Moonrake hitting on every bet regardless of outcome, your actual cost per session drops significantly compared to platforms without these mechanics.

I tested this over multiple sessions. The combination of Moonrake trickling in continuously and Moonback cushioning losses made the bankroll last noticeably longer than identical sessions on Stake.

The VIP System

Stake requires 10,000 points to reach the Bronze tier before you start earning rakeback. I’ve tested this personally over multiple accounts, and most casual players don’t get past Silver.

Moonbet starts you at 20% rakeback and 4% cashback immediately. No threshold to clear first.

I ran this test with $1,800 in Ethereum over six hours of blackjack. Rakeback appeared after each hand. After 200 hands, I’d accumulated $360 in rakeback with no wagering requirements attached. I withdrew it immediately to verify there were no hidden restrictions.

That’s measurably different from platforms where you need to hit tier thresholds before seeing any return. The rakeback scales from 20% to 40% as you move up tiers, and cashback goes from 4% to 8%. But the starting point matters more for most players than the upper limits they’ll never reach.

How to Get Started on Moonbet?

The entire setup took less than two minutes.

Use a VPN (such as NordVPN, ShurfShark or WindScribe) if you are connecting from a region where online gambling is allowed.
Then, connect a Web3 wallet. I used MetaMask, but Phantom and Solflare work just as well. Your wallet address becomes your login.
Choose your deposit cryptocurrency from 50+ options. If you don’t have crypto yet, you can purchase directly through the MoonPay widget with a credit card.
Send funds from your wallet or exchange. They appear in your balance after one confirmation.
Browse the game library by provider, game type, or RTP percentage. Pick a game and start playing.
Withdrawals work the same way. Select the amount, confirm the transaction in your wallet, and the funds arrive in minutes.

Here’s What It Comes Down To

I’ve watched platforms operate in legal gray areas before. They work until they don’t. The collapse is rarely gradual.

I tested Moonbet because it operates differently. Licensed crypto casino, not sweepstakes mechanics. The testing showed a few things worth noting:

Withdrawals cleared faster.
Both test amounts (under $2,000) were processed without KYC requests.
The ETH withdrawal took 4 minutes and 13 seconds.
The reward system pays from deposit one.
Moonrake returns a percentage of the house edge on every bet. Moonback gives cashback on losses.
You’re not grinding toward the Bronze tier to start earning.
No state restrictions tied to sweepstakes casinos.

On the other hand, Moonbet launched in late 2025, so it doesn’t have years of operational history. The platform is newer, which brings uncertainties about long-term stability. But it solves the immediate problem: access without relying on the legal framework that might be actively collapsing for Stake.

If you’re still deciding between them, see our Stake vs Moonbet review for a full side‑by‑side breakdown.

Gambling involves financial risk. Only wager what you can afford to lose. If you or someone you know has a gambling problem, contact the National Council on Problem Gambling at 1-800-522-4700 or visit www.ncpgambling.org. 18+ (or 21+ where applicable). Gambling laws vary by jurisdiction. Verify local regulations before participating.

Author: Caleb Reid is a licensed gaming analyst with 8 years of experience reviewing online casinos. Fact-checked by: Anika Parker, Editor.