iGaming Content Providers Withdraw from Stake.us in California

California has seen content providers like Evolution and Pragmatic Play deciding to withdraw their offerings from Stake.us, the decision follows a civil enforcement action initiated by the City of Los Angeles, which has raised allegations against Stake.us, labelling it an illegal online gambling platform masquerading as a social casino.

On August 29, 2025, the City Attorney of Los Angeles, Hydee Feldstein Soto, filed a lawsuit against Stake.us, claiming that the platform operates in violation of California gambling laws. The lawsuit contends that Stake.us employs a dual currency system involving gold coins and sweepstakes coins, which effectively simulates real-money gambling it is claimed.

Allegations of Unfair Competition and False Advertising

The lawsuit does not stop at the claim of illegal gambling. It also accuses Stake.us of engaging in unfair competition and false advertising practices. By presenting itself as a legitimate social casino, Stake.us allegedly misleads consumers and undermines the integrity of the regulated gaming market in California. This multifaceted legal challenge has prompted a swift response from  content providers.

Reactions from Content Providers

In light of the lawsuit, both Evolution and Pragmatic Play have taken action by pulling their content from Stake.us for users in California. This move is primarily aimed at mitigating potential legal risks and protecting their reputations in an increasingly scrutinised market. The withdrawal signifies a broader trend among gaming providers to distance themselves from platforms that may be operating in a legally ambiguous space.

Pragmatic Play has announced its intention to exit the entire US sweepstakes market, marking a significant shift in its operational strategy. This decision reflects the growing regulatory pressures and evolving legislation that are reshaping the iGaming landscape. As traditional gaming interests ramp up their lobbying efforts, Pragmatic Play’s exit underscores the challenges faced by companies operating in the sweepstakes casino vertical.

Stake.us has vehemently denied the allegations put forth by the City of Los Angeles, asserting that its operations comply with all existing laws. The platform has expressed its commitment to defending its position in court, indicating a willingness to engage in a protracted legal battle. However, the immediate fallout from the lawsuit has left users in California without access to popular games from Evolution and Pragmatic Play, raising concerns about the platform’s future viability.

The legal challenges faced by Stake.us are occurring against the backdrop of California’s Assembly Bill 831, which is currently awaiting a full Senate vote. This proposed legislation aims to impose a comprehensive ban on sweepstakes casinos and introduce criminal penalties for suppliers providing content to such operations. The potential passage of AB 831 could have far-reaching implications for the iGaming industry in California, further complicating the regulatory landscape.

Tribal Opposition to AB 831

The proposed legislation has not garnered unanimous support among California tribes. Several tribal communities, including the Kletsel Dehe Wintun Nation and the Big Lagoon Rancheria, have publicly opposed AB 831, arguing that it threatens their rights to establish legitimate revenue streams.