Key Moments:
- Evolution and Pragmatic Play have ceased operations on Stake.us for California users following a lawsuit by the City of Los Angeles.
- The City of Los Angeles has filed a civil enforcement action identifying multiple suppliers as allegedly supporting illegal online gambling.
- Legislation known as AB 831, which seeks to ban sweepstakes casinos and penalize suppliers, is gaining momentum in California.
Leading Software Providers Withdraw from Stake.us
Stake.us users in California have lost access to popular titles from Evolution and Pragmatic Play after both companies exited the platform. The decision follows a recent lawsuit from the City of Los Angeles, which accuses Stake.us and over 20 related parties of unlawful gambling operations under state law. As legal scrutiny intensifies around sweepstakes practices, these providers have distanced themselves from Stake.us’ offerings in California.
Legal Action Targets iGaming Suppliers
The civil enforcement action from Los Angeles lists several subsidiaries of Evolution, including NoLimit City, Red Tiger, Big Time Gaming, and NetEnt. The lawsuit alleges that these suppliers knowingly licensed their content to a platform regarded as an unlicensed online casino by city authorities.
The proposed AB 831 legislation in California—which would criminalize support for sweepstakes casinos—is gaining support and heightens risk for businesses supplying technology to these platforms.
California is suing online gambling platform Stake for running an illegal casino and for false advertising, and streaming platform Kick for aiding and abetting them.
CA alleges that Stake US uses a two-currency system to circumvent gambling laws was falsely representing itself… pic.twitter.com/g1oBwe3J42
— Rob Freund (@RobertFreundLaw) August 29, 2025
Stake.us Issues Response
Stake.us has publicly denied allegations made in relation to the civil case, confirming knowledge of the lawsuit but defending its operations. A spokesperson told NEXT.io, “We have not been served at this time. However, we reject allegations that have been made in the media in relation to this potential claim and will vigorously defend this and all such claims.”
Broader Implications for Regulatory Compliance
The lawsuit has put iGaming providers at the heart of the legal debate, positioning them as “accomplices” in alleged illegal gambling activity. Legal experts argue that this situation spotlights the obligations and vulnerabilities of gaming suppliers. Daniel Wallach, a gaming attorney, commented to NEXT.io regarding the risks for regulated and publicly listed companies: “The regulatory risk regarding licensing suitability and the reputational risk, especially for publicly traded companies, make them the weak links in the chain.”
If courts place liability on suppliers for the practices of their licensees, it could reshape the established supplier-customer dynamic within online gambling—challenging industry assertions that suppliers operate only as technology vendors.
Increasing Regulatory Attention on Providers
Regulators are now focusing more intensely on software suppliers as part of initiatives to limit unauthorized online gambling. A cited example involves the UK Gambling Commission’s December 2024 investigation, which identified Evolution’s content being offered through unlicensed operators in Great Britain.
Following this, Evolution has taken measures in Europe to restrict its games to properly licensed channels. CEO Martin Careslund discussed the impact of these operational changes during a Q2 report, stating, “Although the ring-fencing measures may have had a larger financial impact than anticipated outside of the UK, we maintain that regulation is positive over time, but that the structure of the regulatory parameters is vital.”
Timeline of Key Legal and Regulatory Developments
| Event | Stakeholders | Description |
|---|---|---|
| City of Los Angeles Files Lawsuit | Stake.us, Evolution, Pragmatic Play, Associated Entities | Accusation of illegal gambling operations; suppliers named in the lawsuit |
| Proposed AB 831 Gathers Momentum | California Legislature, iGaming Suppliers | Potential criminal penalties for supporting sweepstakes casinos |
| Evolution Faces UK Gambling Commission Investigation | Evolution, UK Gambling Commission | Investigation into unlicensed access of Evolution’s games in December 2024 |
- Author
Daniel Williams
