Sweepstakes casinos market themselves as free-to-play games you can't lose real money on. Los Angeles says Stake.us is really a full-blown online casino wearing a disguise — and it wants the operators to pay California players back.
Allegations Only · Nothing Proven
This article describes a government enforcement complaint. The statements below are unproven allegations. The defendants have not been found liable, no court has ruled on the claims, and there is nothing for the public to claim. This page is informational and is not legal advice.
What Is This About?
The Los Angeles City Attorney has taken one of the biggest names in "social casino" gaming to court. In a lawsuit filed on August 28, 2025 in Los Angeles Superior Court — People of the State of California v. Sweepsteaks Ltd. (doing business as Stake.US), No. 25STCV25304 — the city alleges that Stake.us is not the harmless sweepstakes game it presents itself as, but an illegal online casino operating in California. The office brought the case with outside co-counsel and is suing on behalf of the People of California.The complaint frames Stake.us as, in effect, a "carbon copy" of the real-money site Stake.com, dressed up in a dual-currency system to skirt gambling laws. The defendants dispute that characterization. Nothing has been decided yet — every claim in the suit is an allegation that the city will have to prove.
How a "Sweepstakes Casino" Is Supposed to Work
Sites like Stake.us operate on a two-currency model. Players get "Gold Coins" for play-for-fun games and a second currency — on Stake.us, "Stake Cash" — that can be redeemed for prizes, including cash. Operators argue this makes the games legal sweepstakes rather than gambling, because you can obtain the promotional currency without paying and, they say, you are not technically wagering real money. The L.A. lawsuit alleges that this structure is a fig leaf: that in practice players buy their way into real-money casino gambling — slots, table games, live dealers — that California law does not permit. Whether the dual-currency model is a lawful sweepstakes or unlawful gambling is exactly the question the case will test.Who Is Being Sued, and What the City Alleges
The suit names a web of defendants. They include Sweepsteaks Ltd., doing business as Stake.US, and affiliated Stake entities; the livestreaming platform Kick; and the founders behind them, Ed Craven and Bijan Tehrani. The complaint also names several game-content suppliers whose software allegedly powers the platform. The city alleges these parties operated, promoted, or supplied an illegal online casino aimed at Californians.Legally, the case rests on California's Unfair Competition Law and False Advertising Law. The city alleges the platform misled consumers about what it really is and caused financial harm — with particular concern, the complaint says, for people vulnerable to gambling addiction. It seeks civil penalties, a court order shutting down the alleged illegal operation in California, and restitution to recover money Californians lost. The suit also ties in Kick because of the way gambling streams are promoted to audiences; reporting has noted that Kick paid streamers large sums, though specific per-hour figures cited in media coverage relate to Kick's streaming deals rather than being established findings in this complaint. All of these are allegations, and the defendants have not been found liable.
How Big Are the Numbers?
Coverage of the case has emphasized scale. Stake's global operation reported roughly $4.7 billion in gross revenue in 2024, and officials have described California's potential exposure — the money the city says players lost — as reaching into the hundreds of millions, if not more. Those figures give a sense of the stakes, but they are estimates and context, not a judgment: no court has determined any amount is owed, and the ultimate financial consequences, if any, would be decided later in the case.The Bigger Picture: AB 831 and a Wave of Lawsuits
This case is one piece of a much larger crackdown on sweepstakes casinos. In October 2025, California enacted AB 831, a law that bans dual-currency online sweepstakes casinos and extends liability to vendors, payment processors, and media affiliates that knowingly support them; it took effect January 1, 2026. That is separate legislation, not this lawsuit — and it is worth stressing that the California Attorney General has backed the legislative crackdown but has not filed his own suit against Stake.us. The only California government lawsuit against Stake is this L.A. City Attorney case.Beyond government action, dozens of private class actions have been filed nationwide against sweepstakes-casino operators, several naming Stake.us and its celebrity promoters. Those private cases — including a federal RICO class action tied to Stake and its promoters Drake and Adin Ross — are distinct from this government enforcement action, with different plaintiffs, theories, and courts. Together they reflect a rapidly shifting legal landscape for an industry that boomed in a gray area and is now being challenged on multiple fronts.
Frequently Asked Questions
What is the L.A. City Attorney's lawsuit against Stake.us about?
In August 2025, the Los Angeles City Attorney filed a lawsuit on behalf of the People of California alleging that Stake.us — a self-described social or sweepstakes casino — is really an illegal online gambling operation using a dual-currency model to disguise real-money betting. The suit brings California Unfair Competition Law and False Advertising Law claims and seeks penalties, an injunction, and recovery of money Californians lost. These are allegations that have not been proven.
Who are the defendants?
The defendants include Sweepsteaks Ltd. doing business as Stake.US and affiliated Stake entities, the streaming platform Kick, and the founders behind them, Ed Craven and Bijan Tehrani, along with several game-content suppliers named in the complaint. All are alleged to have operated or supported the platform; none has been found liable.
Is this the same as the California Attorney General suing Stake?
No. This is a Los Angeles City Attorney case, not a California Attorney General action. There is no separate state Attorney General lawsuit against Stake.us. Separately, California enacted a law, AB 831, that bans dual-currency online sweepstakes casinos effective January 1, 2026 — but that is legislation, not this lawsuit.
Can I claim money from this lawsuit?
No. This is a government enforcement lawsuit, not a class action or a settlement. There is no claim form and no fund for the public. If the case ever results in restitution, any process would be announced later. There is nothing to claim now.
Sources
• L.A. City Attorney — Office announcement of the Stake.us lawsuit• Susman Godfrey — co-counsel statement and complaint
• Legal Sports Report — Breaking down the California lawsuit against Stake.us and its affiliates
• KTLA — L.A. City Attorney files lawsuit against online gambling giant
• ZwillGen — California's AB 831 bans sweepstakes casinos and expands vendor liability
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