Los Angeles Sues Stake.US and Gaming Giants Evolution, Pragmatic Play, Alleging Illegal Gambling Ring
The Los Angeles City Attorney’s Office has filed a sweeping civil lawsuit against the sweepstakes casino operator Stake.US and a host of its technology suppliers, including the gaming industry giants Evolution and Pragmatic Play. The suit alleges that the companies are collectively operating an illegal online gambling enterprise that preys on California consumers.
A Broad and Aggressive Legal Strategy
The lawsuit, filed on August 29 in Los Angeles Superior Court, names a wide array of defendants. In addition to Stake.US and its founders, the suit targets the streaming service Kick, as well as the game developers Evolution, Pragmatic Play, and Hacksaw Gaming. Even the identity verification company Veriff is named as a defendant.
The central claim of the suit is that Stake.US is not a legitimate social casino, as it claims, but a de facto illegal gambling site. The city attorney argues that the platform’s dual-currency model is a “subterfuge” designed to circumvent state and federal gambling laws.
“Stake.US has designed and styled its website to look and feel exactly like an online casino,” the lawsuit states, pointing to its library of over 1,900 casino-style games.
Suppliers Accused of being “Aiders and Abettors”
What makes this lawsuit particularly noteworthy is its targeting of the B2B suppliers. The city attorney accuses these companies of being “aiders and abettors” in the alleged illegal operation, claiming they knowingly provided their games to an unlicensed gambling site.
The suit alleges that major suppliers like Evolution, which is one of the world’s largest providers of online casino content, are using platforms like Stake.US to gain a foothold in unregulated U.S. markets like California. This allows them to profit from a market that would otherwise be inaccessible to them.
The inclusion of these suppliers represents a new and more aggressive legal tactic in the fight against sweepstakes gaming, as previous lawsuits have typically focused only on the operators themselves.
Severe Allegations and Hefty Penalties
The lawsuit accuses the defendants of violating California’s Unfair Competition Law and False Advertising Law, as well as state and federal gambling statutes. It alleges that Stake.US creates a “predatory, dangerous gambling environment” that exposes Californians to the risks of addiction and financial harm.
The city attorney is seeking a range of significant penalties, including:
- Treble damages for the harm caused.
- An injunction to halt all operations and advertising in California.
- Full restitution of all losses incurred by California players.
- Civil penalties of up to $2,500 per violation, which could amount to hundreds of millions of dollars.
The lawsuit does not exist in a vacuum. It comes as California lawmakers are advancing a separate piece of legislation, AB 831, which aims to criminalize sweepstakes gaming statewide. That bill also includes provisions that would hold suppliers and promoters liable.
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