Pragmatic Play and Evolution Exit California Sweepstakes Casino Market

Four major providers have withdrawn from the California (USA) sweepstakes casino market following a lawsuit filed by Los Angeles authorities against “Stake.us” on August 29.

Reasons Behind the Exit

The lawsuit was filed by Los Angeles City Attorney Heidi Feldstein Soto. Authorities accused “Stake” of running illegal online gambling disguised as a “social casino.”
The dual-currency model — “gold coins” and “sweep coins” — was described as a system mimicking real-money play.

The filing mentions Evolution, Pragmatic Play, and Hacksaw Gaming, which allegedly licensed content to an unregulated operator knowingly.
As a result, these companies pulled their games from “Stake.us” to reduce legal risks and avoid reputational damage.

Industry Leaders Respond

• Pragmatic Play announced a complete withdrawal from the U.S. sweepstakes market effective September 9.
• Evolution (including subsidiaries NetEnt, Red Tiger, Big Time Gaming, and Nolimit City) restricted access to their content in California.
• Hacksaw Gaming followed suit and removed its titles from “Stake.”
• Playtech limited its restrictions to California, removing games from “Chumba Casino” and “McLuck.”

VGW, the parent company of “Chumba Casino,” confirmed the removal of Playtech slots. Titles such as “Tsai Shen’s Gift Fire Blaze” and “Mega Fire Blaze: Big Circus” are no longer available.

Operators’ Position

“Stake.us” rejected the allegations, stating its business model complies with the law. The operator intends to defend its case in court.

VGW sent a letter to players apologizing and clarifying that its game library remains extensive thanks to in-house development. The company emphasized that its partnership with Playtech remains positive despite the changes.

Assembly Bill 831 and Its Impact

The California Senate is reviewing Assembly Bill 831, which seeks to ban sweepstakes casinos entirely and introduce criminal liability for game suppliers.
The vote is scheduled to take place by September 12.

Several California tribal nations have opposed the bill, citing a lack of consultation and concerns about threats to their right to build independent revenue sources.
The Kletsel Dehe Wintun Nation, Big Lagoon Rancheria, and another tribe stated that AB 831 does not reflect the collective position of all communities.

Comparison of Company Actions