Pragmatic Play Pulls Games from U.S. Sweepstakes Casinos 

A Decision Driven by a Shifting Landscape

In a statement, a spokesperson for Pragmatic Play said the company “has chosen to discontinue licensing its games to sweepstake operators in U.S. states where restrictions were not already in place, in light of regulatory developments and evolving legislation.”

This “evolving legislation” refers to a multi-front assault on the sweepstakes casino model. Lawmakers in several states are advancing bills to ban or severely restrict these platforms, arguing they are a direct violation of state gambling laws.

States like New Jersey and Montana have already enacted such prohibitions. In California, a bill that would criminalize not just the operators but also their suppliers and promoters is advancing through the legislature.

The Lawsuit that Broke the Camel’s Back

While the legislative pressure has been building for months, the immediate catalyst for Pragmatic Play’s decision appears to be a recent civil lawsuit filed in Los Angeles. The suit, which targets the sweepstakes operator Stake.US, also names Pragmatic Play and other suppliers as defendants, accusing them of aiding an illegal gambling enterprise.

The lawsuit describes the Stake.US operation as “one of the largest and most profitable illegal gambling enterprises in California’s history.” This legal action represents a new and more aggressive tactic, as it seeks to hold the B2B suppliers accountable alongside the B2C operators.

The Impact on the Sweepstakes Market

Pragmatic Play’s withdrawal is a significant blow to the sweepstakes casino industry. The company is a major provider of high-quality slot and table games, and its titles, such as Sweet Bonanza and Gates of Olympus, are staples on many of the most popular platforms.

For players, the immediate impact will be a reduction in game variety. For the operators, the loss of a major content partner could put a significant dent in their offerings. The decision could also create a domino effect, prompting other major suppliers to reconsider their involvement in the U.S. sweepstakes market. The gaming giant Evolution has also reportedly pulled its games from Stake.US in California in the wake of the lawsuit.

Pragmatic Play is not currently active in the licensed U.S. iGaming market. Its decision to exit the legally gray sweepstakes space could be considered as a strategic precursor to a future entry into the traditional, state-regulated online casino market.