California’s legal spotlight is now fixed on Stake.us. Attorney General Hydee Feldstein Soto has filed a civil lawsuit targeting the sweepstakes casino operator and several of its suppliers, accusing them of operating in violation of state laws.

Good to Know

• The lawsuit cites alleged breaches of California’s Unfair Competition Law and False Advertising Law.
• Defendants include Stake.us, its executives, and major suppliers like Evolution, Red Tiger, Nolimit City, and Hacksaw.
• AB 831, a separate bill, is also moving through the legislature to outlaw sweepstakes casinos statewide.

The filing argues that Stake.us, presented as a “social casino,” is in reality designed to look and operate like a traditional gambling site. It further claims that the company structured its sweepstakes system as a workaround to avoid U.S. gambling regulations.

The Case Against Stake.us

The complaint highlights the role of Stake.us founder and defendant Bijan Tehrani, quoting his earlier boast that Stake.com had “the highest [betting volume] in the world out of any casino, land-based or online.” Prosecutors argue that Stake.us is effectively an extension of that model, dressed up to appear compliant.

Under the platform’s system, players buy Gold Coins that carry no cash value. However, those purchases also unlock “Stake Cash,” which can be used to play casino-style games and later converted into real money. Regulators argue that this dual-currency setup crosses into gambling territory.

In addition to Stake.us executives, suppliers like Veriff, Evolution, Big Time Gaming, Red Tiger, Nolimit City, Hacksaw, and HGIM are all named defendants. They are accused of supporting the operation and helping facilitate gambling activity for Californians.

This case arrives as the debate over sweepstakes casinos intensifies in California. AB 831, a bill currently under consideration in Sacramento, would outlaw sweepstakes altogether. Tribal groups like the California Nations Indian Gaming Association have pushed strongly in favor, while some tribes have opposed it, arguing it could limit their own digital opportunities.

Notably, earlier this year, the Boyle vs Sweepsteaks Limited case challenged the model but ended without a ruling against Stake.us. That decision left the door open for further legal action, and state officials now appear determined to test their case in court.

Stake.us has already pulled out of markets such as New Jersey, Delaware, and West Virginia amid mounting legal challenges. The California lawsuit may prove one of the most consequential, given the size of the market and the state’s ongoing push to regulate or ban sweepstakes-style gaming.

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