LA Files Lawsuit Against Stake.us Amidst Ongoing Dispute Over Sweepstakes

In a move aimed at curbing online gambling, the city of Los Angeles has filed a legal complaint against Stake.us, a US-facing social casino subsidiary of Stake.com. The complaint alleges that Stake.us offers illegal gambling in disguise, and seeks to recover all funds lost by Californians, force the platform to shut down, and impose civil penalties to deter future misconduct.

At the heart of the complaint is Stake.us' use of a dual-currency system, which operators, including Stake.us, employ to claim their products are not gambling. However, regulators, commercial gaming stakeholders, and tribal entities have spurned this model, labeling it as illegal gambling.

The city alleges that Stake.us has been misleading local players and jeopardizing their financial and mental health. This is further compounded by Stake.us' online nature, which makes it easily accessible 24/7, potentially making it more dangerous.

Los Angeles has not only directed its ire towards Stake.us, but also towards casino content suppliers such as Evolution, Pragmatic Play, and Hacksaw Gaming. The city alleges that these suppliers are accomplices who have been enabling and supporting illegal gambling.

The crackdown on sweepstakes companies, including Stake.us, has made it increasingly difficult for them to navigate the US space. Some companies have opted to exit certain states due to the crackdown. In California, there has been a push to usher in a complete ban on sweepstakes.

It is important to note that there is no publicly available information linking the management of Stake.us to illegal gambling activities. No specific name of any involved company leadership has been identified in the provided search results.

The city of Los Angeles hopes to make Stake.us refund all player losses, as part of its efforts to protect its citizens from the potential harms of illegal gambling. The outcome of this legal action could set a precedent for other cities and states in the US, as they grapple with the issue of online gambling and its regulation.