The Los Angeles City Attorney’s Office has launched a sweeping civil lawsuit against Stake.us, its affiliated streaming platform Kick, company founders Ed Craven and Bijan Tehrani, and numerous gaming suppliers. Filed in California Superior Court, the complaint accuses Stake.US of running an illegal online gambling enterprise in violation of California’s Unfair Competition Law (UCL), False Advertising Law (FAL), and the Unlawful Internet Gambling Enforcement Act (UIGEA).

Lawsuit Alleges Illegal Gambling Operations

According to City Attorney Hydee Feldstein Soto, Stake.US’s platform mirrors the design and offerings of its international counterpart, Stake.com, which operates legally outside the United States but is restricted in many jurisdictions. The suit claims the site’s dual-currency system — allowing players to purchase Gold Coins and receive Sweepstakes Coins redeemable for cash equivalents like gift cards or cryptocurrency — disguises what is essentially real-money online gambling.

“The People therefore bring this action to stop the Stake Illegal Gambling Scheme from continuing to prey on Californians, recover all funds lost by Californians, and impose civil penalties on Defendants to deter future misconduct,” the filing states.

The lawsuit (pdf) seeks a permanent injunction to shut down operations in California and treble damages for residents affected by the alleged illegal gambling activities.

What makes this case notable is its scope. As reported by SBC Americas, alongside Stake.US, the lawsuit targets several major industry suppliers, including Pragmatic Play, Hacksaw Gaming, and live casino giant Evolution, as well as its subsidiaries like Big Time Gaming, Red Tiger, and NetEnt. The city argues that these companies knowingly facilitated the operation by providing games to a platform it considers unlawful.

By including game studios and compliance providers such as Veriff, the lawsuit signals a shift in enforcement strategy — suppliers and tech partners are now being treated as active participants rather than neutral service providers. Observers note this could have significant implications for the broader iGaming sector, especially for publicly traded firms like Evolution, valued at approximately €18 billion, and Hacksaw, worth around €2 billion.

The streaming service Kick, heavily tied to Stake.US’s marketing efforts, is also named in the suit. Prosecutors allege Kick amplified the reach of Stake.US by hosting streams that showcased gameplay and promotions targeting Californians. Legal experts warn that if the suit succeeds, platforms that have partnered with online gambling operators could face heightened regulatory and legal scrutiny.

Broader Legal and Regulatory Impact

California has emerged as a critical battleground for the sweepstakes casino industry, and this case could mark a turning point. The legal action coincides with the advancement of Assembly Bill 831 (AB 831), which proposes a statewide ban on sweepstakes casinos and associated suppliers and advertisers. If enacted, the legislation would make operating or supporting such platforms a criminal offense.

“By masking its real money gambling platform as ‘America’s Social Casino,’ Stake.US and Defendants create a predatory, dangerous gambling environment,” Los Angeles attorneys wrote, emphasizing the risks of addiction and financial harm. The complaint highlights that Stake.US offers over 1,900 games, from slots and table games to live dealer titles and scratch cards, all accessible around the clock via mobile and desktop devices.

This aggressive enforcement mirrors actions in other states. In Arizona, operators like Pulsz and Thrillzz have exited the market following cease-and-desist orders, while Ohio has seen class actions against platforms such as Crown Coins Casino.