Evolution AB faces Los Angeles lawsuit over Stake.us ties

Evolution AB, a Swedish gaming supplier, was named in a lawsuit filed by the City of Los Angeles in August 2025. The legal action alleges that the company helped facilitate illegal gambling operations through its ties to the sweepstakes casino Stake.us. The lawsuit seeks an injunction, consumer restitution, and civil penalties of up to $2,500 per violation.

While Evolution AB successfully obtained a dismissal in August 2025 based on a lack of jurisdictional competence, the case has raised significant concerns regarding corporate transparency. Reports indicate that the company failed to disclose the litigation in its 2025 and early 2026 financial reports, a potential violation of European stock market regulations.

Following the filing, Evolution AB and Pragmatic Play announced their intention to exit the California sweepstakes market. The litigation is noted for its unique approach of targeting B2B technology suppliers rather than just the platform operators.