Evolution and Pragmatic Play Withdraw Games from Stake.us Following California Lawsuit
Leading Providers Exit Stake.us Amid Legal Challenges in California
Two major players in the online gambling content industry, Pragmatic Play and Evolution, have recently pulled their games from Stake.us for users in California. This action highlights the increasing regulatory scrutiny sweepstakes platforms face in the United States as states work to restrict this form of gaming.
Suppliers Act to Avoid Regulatory Risks
This move comes after the City of Los Angeles filed a civil lawsuit against Stake.us and some of its affiliates. The lawsuit alleges that despite Stake.us promoting itself as a social casino, it is operating illegal gambling activities under California state law.
The legal complaint extends to Stake.us’s suppliers, including Evolution and its associated studios like NetEnt, Red Tiger, Nolimit City, and Big Time Gaming, whose games are no longer accessible on the platform according to recent reports. Another supplier, Hacksaw Gaming, has also removed its titles from Stake.us.
These providers likely chose to sever ties with Stake.us to avoid reputational damage and maintain healthy relationships with regulators. Associations with controversial sweepstakes platforms can jeopardize their licensing and operations in regulated markets.
Growing Controversy Surrounds Sweepstakes Gaming
Stake.us operates as the American branch of the crypto gambling site Stake.com, well known for sponsoring sports and entertainment events. Unlike traditional online casinos, Stake.us offers games where players use virtual coins and redeem prizes based on sweepstakes rules, a format it claims avoids classification as gambling under existing laws. However, regulators are increasingly skeptical, viewing these offerings as disguised casino gambling.
Officials in Los Angeles argue that Stake.us misleads Californians by presenting itself as a harmless social platform while enabling unregulated gambling risks. Stake.us denies the allegations and intends to vigorously defend its position, but losing key suppliers could significantly impact its business.
This legal conflict coincides with California’s Assembly Bill 831, which seeks to ban sweepstakes casinos entirely and is advancing to the state Senate. The bill, however, has faced considerable opposition from tribal organizations and industry groups who claim it would harm legitimate promotional gaming and damage the state’s digital economy.
