Sweepstakes Casinos Resembles Real Money Casinos According to AGA Report.
According to AGA's report, respondents thought of sweepstakes casinos like regular online gambling.

Los Angeles’ lawsuit against Stake.us to VGW’s alliance with a California tribe, and the latest sweepstakes casino reports from the American Gaming Association, highlight the ongoing difficulties in the sweepstakes industry.

TL;DR: A Bite-sized Overview:

  • AGA report flags sweepstakes as gambling: 68% of players seek real money wins, prompting calls for stricter oversight.
  • VGW partners with California tribe: Alliance with Kletsel Dehe Wintun Nation opposes AB831, boosts tribal economic opportunities.
  • City of LA sues Stake.us and suppliers: Lawsuit targets illegal gambling, leading Evolution and Pragmatic Play to exit Stake.us in California.

Sweepstakes Casinos Mimic Gambling According to AGA Report

Last month, the American Gaming Association (AGA) released a report revealing that players widely perceive sweepstakes casinos as gambling due to their branding, language, and functionality that mirrors that of regulated online casinos. This consumer confusion, fueled by a lack of regulatory oversight, leaves players without safeguards like responsible gaming measures or accountability.

The report, based on a June 2025 survey of 2,250 online casino and sweepstakes players by Interpret, reveals that sweepstakes casino ads accounted for half of all online real-money casino advertisements in early 2025. These ads heavily target populous states and those with unclear regulations, unlike legal operators, who focus on regulated markets with strict advertising guidelines. AGA’s Tres York emphasized the need for clear legal definitions, stronger enforcement, and consumer education to address the risks posed by unregulated sweepstakes platforms that exploit legal loopholes.

VGW Partners with California Tribe to Bolster Social Gaming Amid AB831 Controversy

Virtual Gaming Worlds (VGW), operator of Chumba Casino and Global Poker, announced a conditional partnership with the Kletsel Dehe Wintun Nation to offer free-to-play social gaming, including sweepstakes promotions, in California. VGW’s CEO, Laurence Escalante, called the deal a commitment to responsible operations and community engagement, aligning with opposition to AB831, a bill that aims to ban sweepstakes casinos in California.

Eric Wright, representative of the Kletsel Dehe Wintun Nation, in a letter to California’s Senate Appropriations Committee, criticized AB831 for lacking tribal consensus and threatening smaller tribes’ economic opportunities. He argued that digital platforms could fund critical needs, such as healthcare and education, for geographically disadvantaged tribes, unlike larger gaming tribes that were supporting the bill. VGW’s partnership, backed by the Social Gaming Leadership Alliance, advocates for regulation over bans to protect players and generate revenue, warning that the passage of AB831 could harm local businesses and exacerbate tribal disparities.

Los Angeles Sues Stake.us and Suppliers, Alleging Illegal Gambling Operations

The city of Los Angeles filed a civil lawsuit in California Superior Court against Stake.us, its founders, parent company EasyGo, and suppliers Evolution, Pragmatic Play, and Hacksaw Gaming, alleging that the sweepstakes casino operates as an illegal gambling business. The suit claims that Stake.us’ dual-currency model, offering free Sweepstakes Coins redeemable for cash alongside Gold Coin purchases, mimics a real-money online casino with over 1,900 games, fostering addiction and financial harm. It seeks to halt operations, recover player losses, and impose penalties.

The lawsuit labels Stake.us a “predatory” platform, accessible 24/7, diverting funds from essential expenses. Targeting suppliers mirrors tactics employed in proposed bans, such as California’s AB 831. The complete list of defendants includes:

  • Sweepstakes Limited (Stake.us)
  • Easygo Group Holdings Pty Limited
  • Medium Rate N.V.
  • Kick Streaming Pty Limited
  • Ed Craven
  • Bijan Tehrani
  • Veriff
  • Veridian (Gibraltar) Limited
  • Tamaris (Gibraltar) Limited
  • Evolution AB
  • Evolution Malta Holding Limited
  • Evolution US LLC
  • Evolution Malta Limited
  • Bigtime Gaming Pty Limited
  • Red Tiger Gaming Limited
  • Red Tiger International Limited
  • Netent Nolimit City Holding Limited
  • Nolimit City Limited
  • Hacksaw AB
  • Hacksaw Gaming Limited
  • HGMT Limited
  • HGIM Limited

Evolution and Pragmatic Play Pull Games from Stake.us in California

Following the aforementioned lawsuit, major iGaming suppliers Evolution and Pragmatic Play ceased providing games to Stake.us. According to the list above, the lawsuit also named Evolution’s subsidiaries, including Nolimit City, Red Tiger, Big Time Gaming, and NetEnt, as well as Hacksaw Gaming, whose games are no longer available on Stake.us.