Stake.us, one of the most popular sweepstakes casinos in the United States, is losing more content providers in California, with the exits coinciding with a lawsuit by the Los Angeles City Attorney and the state’s efforts to ban the online sweepstakes model via Assembly Bill 831.
More Content Providers Pull Games From Stake.us In California
Earlier this week, Stake.us players noticed that titles from Booming Games (24 games), Fat Panda (17 games), and Just Slots (6 games) were unavailable in California.
Because the same titles are still live on competing platforms, such as WOW Vegas and McLuck in California, this means the withdrawal is limited to just Stake.us.
Those 47 titles add to the excluded list of Evolution and Pragmatic Play titles.
Banned titles now include 586 games by Pragmatic Play, 95 titles by NoLimitCity, 60 slots from Red Tiger, 45 games by Big Time Gaming, and 34 by NetEnt.
That’s nearly half of Stake’s 1,800-plus slots.
All Disputes Subject To Arbitration?
In Dennis Boyle v. Sweepsteaks Ltd., the United States District Court for the Central District of California granted Stake.us’ motion to compel arbitration pertaining to the plaintiff’s claims that the platform violated state law.
The court denied to rule on the issue of illegality of the platform, stating that it was an issue to be determined by the arbitrator based on Stake.us’ terms, which establish a valid agreement to arbitrate between the parties.
Stake.us’ Terms and Conditions state that “any and all past, present and future disputes, claims or causes of action between you and Stake or any of its affiliates, subsidiaries, ultimate parent and parent companies, partners, officers, directors, employees, contractors, shareholders, agents, licensors, subcontractors or suppliers, which arise out of or are related in any way to these Terms, the formation of these Terms, the validity or scope of this clause 26 (Dispute Resolution and Agreement to Arbitrate), your Participation in or other access to or use of the Games or the Platform, or any other dispute between you and Stake or any of its affiliates, subsidiaries, ultimate parent and parent companies, partners, officers, directors, employees, contractors, shareholders, agents, licensors, subcontractors or suppliers” shall be subject to arbitration.
New Lawsuit Filed Against Stake.us
Furthermore, the latest complaint seeks to permanently ban Stake.us from California based on the platform violating state and federal laws by “falsely advertising itself” as a free-to-play social casino.
The complaint is also seeking restitution and damages for each violation of the state’s unfair competition and false advertising law, as well as relief against the following third parties: Veriff, Evolution/Hacksaw/Pragmatic Play, and Kick.
In addition, the suit intends to render Stake.us’ owners, Ed Craven and Bijan Tehrani, personally liable for the allegations made against the company.
Since a new complaint has been filed, the city attorney’s office may move for preliminary injunction to prevent Stake.us and its affiliates from operating and/or advertising the platform in California for the time being.
California Senate Passed Assembly Bill 831
On Tuesday, the California Senate passed Assemblymember Avelino Valencia’s AB 831 by a 36-0 vote. The legislation would outlaw sweepstakes casinos and sweeps promotions in the state.
If signed into law by Gov. Gavin Newsom, the measure would also make it illegal “for any person, entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within the state.”
The Social Gaming Leadership Alliance (SGLA) strongly condemned the Senate’s decision, warning AB 831 would jeopardize jobs, limit opportunities for economically disadvantaged tribal nations, and ignore overwhelming voter preference.
“AB 831 is a fundamentally flawed proposal that serves the narrow interests of a few powerful groups while silencing the voices of millions of Californians who responsibly enjoy these games – and tribal nations who see the games as a lifeline to fund vital services,” said Jeff Duncan, Executive Director of the Social Gaming Leadership Alliance.
“This bill threatens legitimate businesses with criminal liability, strips economically disadvantaged tribes of a key development opportunity, and ignores the potential for smart regulation to generate hundreds of millions in new tax revenue for the state. We urge the Assembly members to reject this misguided legislation and stand for equity, innovation, and tribal self-determination.”