LA City Attorney sues Stake, Kick, and partners over alleged illegal gambling ring

LA City Attorney sues Stake, Kick, and partners over alleged illegal gambling ring

The Los Angeles (LA) City Attorney has sued sweepstakes operator Stake, Kick Streaming, and other partners over an alleged illegal gambling ring.

As well as Stake and Kick, the two companies’ co-founders Ed Craven and Bijan Tehrani, service providers Evolution and Hacksaw, and 12 other related partners have been named in a lawsuit, with charges related to running or aiding and abetting the running of an illegal online gambling ring. This allegedly puts them in violation of California law.

This isn’t the first time that Stake has faced legal action, with lawsuits already in California, Illinois, and Alabama. Those previous cases allege that Stake has engaged in alleged bad practices and running an illegal casino posing as a sweepstakes game.

Lawsuits reaching beyond Stake and Kick

In this new LA lawsuit, the naming of Evolution, Hacksaw, and other B2B gambling services providers highlights that not only Stake and Kick could be held liable for illegal gambling practices, but also the service providers and operators that seemingly assisted them.

Both Evolution and Hacksaw are Swedish companies that now face allegations that they knowingly licensed content to a platform operating as an unlicensed casino in California. They could now face both civil penalties and restitution orders.

While other suppliers, including Pragmatic Play, Red Tiger, NetEnt, Nolimit City, and Big Time Gaming, analysis from sports betting lawyer Daniel Wallach underlines that Evolution and Hacksaw have the most to lose, being valued on public markets.

With illegal gambling taking up a third of the US market, gambling service providers now have even greater reason to ensure that the services they provide are being used on legal games, or else risk lawsuits themselves. As well as potentially costing large sums, the reputational damage could also be extreme, especially for smaller providers.

Featured image: Flickr, licensed under CC BY-SA 2.0

The post LA City Attorney sues Stake, Kick, and partners over alleged illegal gambling ring appeared first on ReadWrite.

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Rachael Davies

Tech Journalist

Rachael Davies has spent six years reporting on tech and entertainment, writing for publications like the Evening Standard, Huffington Post, Dazed, and more. From niche topics like the latest gaming mods to consumer-faced guides on the latest tech, she puts her MA in Convergent Journalism to work, following avenues guided by a variety of interests. As well as writing, she also has experience in editing as the UK Editor of The Mary Sue , as well as speaking on the important of SEO in journalism at the Student Press Association National Conference. You can find her full portfolio over on…

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