The major iGaming content providers Evolution and Pragmatic Play have pulled their content from Stake.us for users in California after a civil enforcement filed by the City of Los Angeles on August 29.
Led by the City Attorney, Hydee Feldstein Soto, the lawsuit alleges that Stake is essentially an illegal online gambling service, hidden as a “social casino”, which violates various laws in the Golden State.
Beyond law breaches on gambling, unfair competition, and false advertising, the lawsuit further claims that Stake’s dual currency system of gold coins and sweepstakes coins replicates real money gambling.
Crucially, the legal action names Evolution (including its NetEnt, Red Tiger, Big Time Gaming, and Nolimit City subsidiaries), Pragmatic Play, and Hacksaw Gaming as accomplices for knowingly licensing games to an unlicensed operator.
As a direct response, Evolution and Pragmatic Play immediately shut down their content on Stake in California to mitigate legal risks as well as for reputational reasons.
Breaking: Pragmatic Play is actually pulling its games from all sweepstakes casino operations in the US. It has become the first major provider to exit the controversial sweepstakes casino vertical amid regulatory pushback and lobbying from traditional gaming interests.
— Zak Akoo (@ThomasAkoo) September 2, 2025
Assembly Bill 831 awaits full Senate vote
Pragmatic did not stop at the California jurisdiction, as the company announced a full exit from the United States sweepstakes market, citing “regulatory developments and evolving legislation”, signaling a potential shift closer to regulated iGaming markets.
This comes at a time when California’s Assembly Bill 831 is advancing, with the proposed legislation set to enforce a full ban on sweepstakes casinos and to unleash criminal penalties on suppliers providing content for their operations.
This is an ongoing situation that major players like Evolution and Pragmatic Play are monitoring, with AB831 awaiting a full Senate vote after clearing the Senate Appropriations Committee
Stake.us has refuted the allegations by insisting its sweepstakes operation complies with all existing laws and said it will defend its position.
Last week, a third California Tribe declared its open opposition to Assembly Bill 831, following the trend of the Kletsel Dehe Wintun Nation and the Big Lagoon Rancheria.
The communities have argued that AB831 lacks unanimous support among California tribes, which has advanced without “meaningful consultation of broader tribal interests, and threatens our inherent right to create legitimate revenue streams to support our people.”
ReadWrite has approached Evolution, Pragmatic Play, and Stake US for further comment.
Image credit: Stake
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