In Los Angeles, an unprecedented legal battle is under way: the city has filed a lawsuit against Stake.us, the American branch of the online casino Stake, accusing it of disguising a genuine illegal casino behind a so-called “sweepstakes” model.
From justifications to accusations
Stake.us presents itself as a social casino platform, based on a dual currency system – players buy Gold Coins and receive Sweepstakes Coins, redeemable for real money. But Los Angeles sees this architecture as a ruse: in their view, Stake.us creates an illegal gambling environment by masking its true operation behind a facade of harmless entertainment.
The City Attorney argues that the site, which is available 24 hours a day, encourages addiction and diverts Californians’ money, sometimes to the detriment of essential needs such as rent or health. The judicial demand is clear: immediate closure of the platform, reimbursement of losses incurred by players and financial penalties.
Accomplices in the hot seat
This complaint does not stop at Stake.us. Los Angeles is broadening the scope of the lawsuit by also targeting several game developers and technical suppliers who have helped the platform operate. These include Evolution, Pragmatic Play, Hacksaw Gaming, NetEnt, Red Tiger, NoLimit City and Big Time Gaming.
According to the city, these companies are complicit in an illegal gambling scheme, providing the content that powers Stake.us’s virtual machines. The stakes are high: these suppliers could now fear major legal repercussions, a reality that could redraw alliances in the industry.
An increasingly hostile national context
Stake.us is not new to legal action. Last March, a California resident, Dennis Boyle, filed a federal complaint alleging that the platform was operating an illegal casino. The case was referred to private arbitration under the terms of use signed by the user, which delayed the legal assessment of the merits.
What Stake.us risks
If the city wins its case, Stake.us could be forced to cease operations in California, reimburse players, and its suppliers could also be penalised. This decision could also force Stake to review its national and international strategy, despite the licences already held in countries such as Brazil, Italy and Colombia.
The blow to Stake.us sends a clear signal: jurisdictions will no longer tolerate disguised circumvention strategies. Content providers, often considered neutral, are now in a vulnerable position. This change of perspective could lead to a re-evaluation of partnerships and compliance models in iGaming.