The Los Angeles City Attorney named Evolution AB as a defendant in the Stake.us sweepstakes lawsuit in August 2025. The company has not mentioned the case in any quarterly or annual report since, and has not responded in court.
City Attorney Hydee Feldstein Soto filed the suit on 28 August 2025, alleging complicity in illegal online gambling and violations of California competition and advertising law. Named defendants include operator Sweepsteaks Ltd., its owners Ed Craven and Bijan Tehrani, streaming platform Kick, and ten Evolution entities: Evolution AB, Evolution US LLC, Evolution Malta Ltd., NetEnt, Nolimit City, Red Tiger, and Big Time Gaming. Four Hacksaw Gaming entities were also named. The claim centres on licensing and marketing games for Stake.us. The Attorney seeks an injunction, player reimbursement, and penalties of up to $2,500 per violation.
The case sets a precedent: if the court holds a content supplier liable for operator conduct, the entire B2B chain faces exposure. Evolution and Pragmatic Play withdrew from the California sweepstakes market days after the suit was filed.
Gambling Insider reviewed four quarterly and annual reports since August 2025, plus the latest earnings call transcript. The lawsuit appears nowhere. In the Q3 2025 report, CEO Martin Carlesund wrote that 'conditions are changing, as in California, where the city attorney made a personal interpretation of the law'. He did not name Stake.us or mention litigation. In subsequent reports — full-year 2025, Q1 and Q2 2026 — the subject disappeared entirely. The litigation section in Q2 2026 lists only two matters: Evolution's suit against Playtech and a £4.75 million settlement with the UK Gambling Commission.
On the 17 July 2026 earnings call, analysts from Morgan Stanley, UBS, Citi, Barclays, JPMorgan and Bank of America asked about Asia, Europe, and the Galaxy Gaming deal. No one raised the California case.
Under EU Market Abuse Regulation and Nasdaq Stockholm rules, a listed company must disclose inside information 'as soon as possible' if it could affect the share price. A $2,500-per-violation penalty is immaterial for a company with €2 billion revenue in 2025, but a precedent shifting liability to suppliers could reprice risk across the industry. Evolution did not respond to a request for comment.
