Stake.us to Fully Shut Down California Platform Amid Ongoing Lawsuit

Stake.us is the latest sweepstakes casino to exit the California market this month. According to multiple reports, the Stake’s operations will continue until December 30th, 2025. From here, the popular social casino will no longer accept new players, and existing players can no longer play or complete coin purchases. Players’ accounts will be put into “Redeem Only”, where they can only access the remaining balance and initiate redemptions, but can no longer play.

Stake’s decision comes two days before the deadline set by AB831, and is tied to the current lawsuit the operator faces in the Golden State.

Stake’s Exit Happening Against a Backdrop of Increasing Regulatory Pressure

Stake.us, a subsidiary of the popular Stake brand, is pulling the plug in California amid growing regulatory pressure. The operator’s latest decision can be linked to two important developments:

• Lawsuit filed last September 4th, 2025. According to Los Angeles City Attorney Hydee Feldstein Soto, Stake operates an illegal and unlicensed online gambling site in California, despite using a “social casino/sweepstakes casino model”. The Public Rights Branch of the City Attorney’s Office manages the Stake case, which was filed on August 28th. Records show that the operator faces several violations under state laws, including the Unfair Competition Law and the False Advertising Law.
• Governor Gavin Newsom approved and signed AB831. On October 13th, Governor Newsom signed a bill banning all sweepstakes casino operations in the state with strong bipartisan support. The law makes sweep sites illegal starting January 1st, 2026, and also extends the liability to affiliates, including payment processors.

Software vendors have already pulled their content from Stake in response to stricter regulations. A few weeks ago, Evolution Gaming and Pragmatic Play pulled titles for California players due to legal risk. Hacksaw Gaming, another popular vendor, has also signalled its intention to leave the state.

Revisiting the Stake.us Shutdown

On paper, Stake’s decision is one of the biggest news stories to come out of the industry in recent days. Although the management announced that it’s pulling the plug in California, it doesn’t mean it will end its sweepstakes casino operations nationally. It’s a localised decision that only affects California players, who must complete their redemptions before the site’s full closure.

Stake’s recent move reflects a broader challenge for the sweepstakes casino industry. For the company, an exit doesn’t guarantee that no similar suits will follow.

Experts say that lawsuits may continue, and other operators are not safe. The dual-currency model, with Gold Coins (GCs) and Sweeps Coins (SCs), is at the heart of the legal challenge. According to these lawsuits, this model operates like real-money gambling under state laws.

REFERENCES:

• AB831
• Los Angeles City Attorney