Stake.us to Exit California Market Ahead of New Law
Stake.us has confirmed it will fully stop all operations in California by December 30, 2025. This exit date, verified by Sweepsy through communication with a customer service representative, comes two days before Assembly Bill 831 (AB 831) takes effect on January 1, 2026. The platform’s decision is a direct response to intense legal and regulatory pressure in the state.
Complete Shutdown of Platform
The closure is a full platform withdrawal. This means Stake.us will end gameplay using both Sweeps Coins (SC) and Gold Coins (GC). This is a more cautious step than some competitors who plan to keep Gold Coin play running. The total shutdown likely relates to a consumer protection lawsuit filed against the company in California.
After December 30, user accounts in California will switch to a “Redeem Only” status. Players may still log in to cash out any remaining Sweeps Coins balance. Users will face harsh limits after that date. Californian users will not be able to play games, make purchases, join promotions, or ask for free Stake Cash/codes.
Furthermore, the platform has already blocked or will close new player registrations and identity checks using California-issued documents.
Legal Pressure Forces Hand
The withdrawal is a consequence of legal action and new state legislation. On August 28, the Los Angeles County Superior Court received a lawsuit against Sweepsteaks Ltd., the parent company of Stake.us.
This lawsuit is the first time a U.S. state jurisdiction has targeted a sweepstakes casino operator and its partners directly. The suit claims the platform operates illegal real-money gambling while falsely promoting itself as a free-to-play social casino.
Adding to the pressure is AB 831, signed by Governor Newsom. This law, effective January 1, 2026, is designed to close a legal loophole. It prohibits the operation or promotion of online sweepstakes games that copy casino-style gambling and use a dual-currency system. Penalties for breaking the law include fines up to $25,000 and jail time. The bill specifically extends criminal liability to entities that support the games, such as payment processors and gaming content suppliers.
The pressure has caused an industry-wide shift. Stake.us is the third major sweepstakes platform to confirm a complete exit from California. The pending legislation and the lawsuit have led to a mass withdrawal of game content.
Titles from 11 different suppliers, including NetEnt, Red Tiger, and Big Time Gaming, have already become unavailable to Stake.us players in the state. Losing almost half of its available slots and live dealer games, Stake.us faced a major loss of content ahead of its final closing date.
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