Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioLos Angeles City Attorney Hydee Feldstein Soto has filed a civil enforcement lawsuit against sweepstakes casino Stake.us, its owners, Kick Streaming, and several gaming content suppliers, including Evolution and its subsidiaries, for allegedly operating or aiding an illegal gambling enterprise in California.
With this case, Soto becomes the first US official to take direct legal action against sweepstakes casinos, a controversial model facing mounting scrutiny nationwide.
US gaming attorney Daniel Wallach broke the news on X, posting a screenshot of the complaint. The filing names over a dozen defendants, including Stake’s owners Ed Craven and Bijan Tehrani. It also sues Easygo Holdings, the parent company of Stake, Kick Streaming, and Twist Gaming.
The complaint also accuses several content providers. They include Evolution and its subsidiaries, including NetEnt, Red Tiger, and NoLimit City. Hacksaw Gaming is also a defendant.
Soto Works With Law Firm Also Suing VGW
Wallach noted that Soto is co-counseling with Susman Godfrey LLC. The same law firm recently filed a nationwide class action lawsuit against VGW, the operator of Chumba Casino, LuckyLand Slots, and Global Poker. The complaint also names influencer Brian Christoper, along with California suppliers such as Trustly, Yodlee, and Jumio.
The case differs from the many other class actions against sweepstakes casinos, as it was filed on behalf of VGW customers’ spouses who share bank accounts but never agreed to the terms.
With this approach, the plaintiffs argue that VGW’s arbitration clauses, for which the operator has won multiple lawsuits, are invalid. The suit seeks damages under state loss-recovery statutes that allow secondary parties to recoup gambling losses.
The shared legal counsel of Soto and Susman Godfrey suggests a coordinated effort to challenge the sweepstakes casino industry on multiple fronts. It also could mean that VGW could be next on Soto’s radar.
Evolution Draws More Fire Over Unregulated Access
The complaint’s inclusion of Evolution marks another challenge to the B2B supplier, which has long fought a battle over its role in unregulated markets.
Earlier this month, leaked recordings suggested that senior Evolution executives knew that the company’s games were accessible in illegal markets or those subject to US sanctions, such as Iran and Sudan.
Private intelligence firm Black Cube submitted the recordings in a defamation suit Evolution filed against Calcagni & Kanefsky, a New York-based law firm representing an unnamed client. The law firm had accused the content supplier in 2021 of knowingly allowing its games to be played in prohibited jurisdictions.
Evolution denies the 2021 report’s findings. Still, its financial reports show that for the last quarter, 56% of its global revenue came from “unregulated” markets.
The LA lawsuit builds on that narrative, alleging that Evolution and its subsidiaries supplied games to sweepstakes platforms that circumvent California’s gambling laws.
First Government Enforcement, Dozens of Private Suits Already Filed
While Soto’s complaint is the first brought by a government official, sweepstakes casinos are already fighting a growing number of private lawsuits across the US.
More than 60 are active across the US, including around a dozen in California and 18 in Alabama. Over 20 new complaints have emerged in the past two months alone.
So far, operators have fended off many cases, with courts upholding arbitration clauses or dismissing claims for lack of standing. VGW, for example, has already won three suits in Georgia.
Still, the surge in litigation is drawing more attention to the legal gray area that sweepstakes casinos occupy.
California Ban Bill Faces Resistance
Aside from government and public lawsuits, California is also considering a ban on sweepstakes casinos. An active bill, AB 831, has already advanced through two Senate committees, but recently stalled in the Senate Appropriations Committee.
While it unanimously voted to pass the measure, the committee placed it in a Suspense File. Lawmakers will return to review it again on what’s called “Suspense Day”, which could be today, August 29.
In this special session, lawmakers will decide whether to advance AB 831 to the Senate floor or effectively kill it. They often use the suspense process to weigh the fiscal impact of controversial bills.
The growing opposition to the prohibition of sweepstakes casinos could influence the committee’s decision. Operators, such as VGW, have partnered with several high-profile organizations, including the American Civil Liberties Union, to fight the bill.
In addition, two Native American tribes have joined the opposition, citing that a ban would limit their economic opportunities. The two tribes, which occupy geographically isolated regions in California, have broken ranks. A coalition of over 50 other tribes supports the ban.
If the bill passes, it would cement California’s stance against sweepstakes casinos and strengthen Soto’s position. If it fails, the L.A. lawsuit could still serve as a test case for enforcement. It could set a precedent for other cities and states to follow.
