Gambling company Stake.us and suppliers face lawsuits over alleged operation of an unlawful gambling enterprise by Los Angeles authorities

In a significant move against the sweepstakes casino industry, the city of Los Angeles has filed a lawsuit against Stake.us, EasyGo holding company, and several major iGaming suppliers. The lawsuit, which targets Stake.us as particularly pernicious due to its round-the-clock accessibility via mobile phones and computers, aims to stop the operation, recover funds lost by Californians, and impose civil penalties on the defendants to deter future misconduct.

The lawsuit alleges that Stake.us is operating an illegal gambling business, exploiting a dual currency structure where players receive free Sweepstakes Coins after purchasing Gold Coins. These Sweepstakes Coins can be redeemed for real money in the Stake.us sweepstakes casino. The operation, the lawsuit claims, jeopardizes the financial and mental health of those involved and presents hazards that California's anti-gambling laws are intended to prevent.

The legal action in California is part of ongoing efforts to ban the sweepstakes casino industry in the Golden State. The lawsuit names live casino giant Evolution, content supplier Pragmatic Play, and slots provider Hacksaw Gaming as "accomplices" to the operation. Notably, besides Stake.us, no other companies are listed in the Los Angeles criminal indictment related to the suspected illegal gambling business, according to available search results.

This is not the first legal action Stake.us is facing in the US over its sweeps casino. There is currently another class action ongoing, specifically in California. The lawsuit seeks to prevent Stake.us from preying on Californians, stating that money that would otherwise be used for essential expenses like rent, mortgages, utilities, food, clothing, school supplies, college tuition, and medical care is being diverted to Stake.us's illegal gambling scheme.

The lawsuit is the latest legal wrinkle for Stake.us and the controversial sweepstakes casino industry, which is currently facing a total ban working its way through the Golden State's Senate. The targeting of sweepstakes casino suppliers is a tactic that has also been seen in several proposed legislative bans, including the Californian bill AB 831. The lawsuit states that the operation creates a predatory and dangerous gambling environment, drawing in Californians across demographics and exposing them to substantial risks of gambling addiction.

Gambling company Stake.us and suppliers face lawsuits over alleged operation of an unlawful gambling enterprise by Los Angeles authorities