TLDR Los Angeles sued Evolution AB in August 2025 over its ties to Stake.us The case claims Evolution helped run an illegal gambling business Evolution has not named the lawsuit in four straight earnings reports Analysts have never asked about the case on an earnings call Evolution and Pragmatic Play already left the California sweepstakes market
Los Angeles City Attorney Hydee Feldstein Soto filed a lawsuit against the sweepstakes casino Stake.us in August 2025. The case did something new. It also named the company’s gaming suppliers as defendants.
Evolution AB, a Swedish company listed on the Stockholm stock exchange, was one of them. The company supplies live-dealer casino games to operators around the world.
More than ten related entities were named in the suit, including Evolution US, Evolution Malta, NetEnt, Red Tiger, and Nolimit City. Four Hacksaw Gaming entities were also listed.
The lawsuit accuses these companies of helping run an illegal gambling operation. It cites California’s consumer protection laws.
What the Lawsuit Seeks
The city is asking for an injunction to stop the alleged conduct. It also wants restitution for consumers and civil penalties of up to $2,500 per violation.
The City Attorney’s office called it the first case of its kind in the country. It targets suppliers, not just the operator running the platform.
Within days of the filing, Evolution and Pragmatic Play said they would exit the California sweepstakes market. That response came quickly.
What did not come was any mention of the lawsuit to shareholders.
Four Reports, No Mention
A review of Evolution’s financial reports found no reference to the case in any of them. This includes the third quarter 2025 report, the full year 2025 report, and both 2026 quarterly reports so far.
The closest Evolution came was a line from CEO