The city of Los Angeles has escalated its battle against sweepstakes-style casinos, filing a lawsuit that not only targets Stake.us but also some of the world’s biggest iGaming suppliers. Industry heavyweights, including Evolution, Pragmatic Play, Hacksaw Gaming, Red Tiger, NetEnt, NoLimit City, and Big Time Gaming, are all named as accomplices in an “illegal gambling operation.”
According to the filings, these suppliers knowingly provided games to Stake.us, enabling the platform to operate as an online casino without the proper licenses. The complaint further highlights Pragmatic Play’s use of subsidiaries in Gibraltar, along with Hacksaw Gaming’s links to Malta and the Isle of Man. Observers suggest that if the courts accept supplier liability, it could mark a turning point in the industry. This would challenge the long-standing defense that developers merely deliver technology rather than oversee gambling operations.
A Real Online Casino Pretending Not to Be?
At the center of the lawsuit is the allegation that Stake.us is disguising a real-money gambling platform under its sweepstakes model. The city argues that the site’s design mirrors traditional online casinos, featuring a massive library of more than 1,900 games, including slots, table games, and live dealer titles.
The case points to the platform’s dual currency system as evidence of its casino-like nature. Essentially, the players purchase Gold Coins and receive free Sweepstakes Coins that can ultimately be redeemed for cash. Prosecutors further warn that Stake.us creates a high-risk environment by allowing 24/7 access through mobile devices and computers. With the ever-present concerns about problem gambling, this implies an addictive aspect.
Broader Restrictions on Sweepstakes Casinos in California
Los Angeles prosecutors have asked the court to shut down Stake.us operations, recover player losses, and impose penalties on the company and its suppliers. The city’s complaint warns that money meant for essentials like rent, food, tuition, and medical care is being funneled into an illegal scheme.
This legal action comes as California lawmakers weigh broader restrictions on sweepstakes casinos. Assemblymember Avelino Valencia has introduced a bill to outlaw the model entirely, reflecting increasing political and regulatory momentum against operators in this gray area of U.S. gambling law.
Stake.us is no stranger to legal scrutiny. The operator is already facing several class action lawsuits. However, past attempts against sweepstakes operators have struggled to overcome legal setbacks. Still, with LA’s case also targeting major suppliers, the stakes for the broader online gambling industry may be higher than ever.
