Pragmatic Play has officially withdrawn from the U.S. sweepstakes casino market, becoming the first major iGaming supplier to take such a step as legal and regulatory pressures around the vertical intensify. The decision marks a significant shift for the company, which will no longer license its games to sweepstake operators across the United States.
According to a spokesperson for the company, the move was made “in light of regulatory developments and evolving legislation.” Although Pragmatic Play has not been implicated in any lawsuits, it has opted for a cautious exit, citing its ongoing commitment to compliance. “We remain committed to the highest standards of compliance and will continue to engage transparently with regulators,” the spokesperson added.
Legal Risks Mount for Sweepstakes Operators and Suppliers
The decision follows a civil lawsuit filed by Los Angeles City Attorney Hydee Feldstein Soto against sweepstakes operator Stake.us, accusing the company of violating state competition and advertising laws. While Pragmatic Play was not directly named in the suit, several of its peers were included as defendants, signaling broader legal risks for suppliers in this gray market.
At the same time, Assembly Bill 831 (AB 831), backed by California Attorney General Rob Bonta, is pushing to outlaw sweepstakes-style gambling platforms statewide. California currently permits gambling only on tribal land, and AB 831 would criminalize the operation and support of sweepstakes casinos without tribal-state agreements.
In a parallel development, Assembly Bill 837 (AB 837) - which specifically targets dual-currency sweepstakes casinos - passed through California's Senate Appropriations Committee with a 7-0 vote. This means the bill now heads to the full Senate for a final reading before the legislative session ends on September 12. If passed, the legislation would impose fines between $1,000 and $25,000 on operators violating the ban.
Pragmatic's Exit Reflects Industry-Wide Uncertainty
The sweepstakes model has long been a point of contention in the U.S., with its legality and regulatory oversight varying dramatically between states. Pragmatic Play's departure highlights the growing concerns among suppliers about the sustainability and legal exposure tied to this market.
This move has prompted speculation that Pragmatic may be preparing for a future push into the regulated U.S. iGaming space, although the company has yet to make any formal announcements. For now, its titles remain accessible in parts of Canada, but not in any U.S. regulated iGaming markets.
Other suppliers appear to be following suit. Industry heavyweight Evolution has also pulled its games from Stake.us, signaling that Pragmatic may not be the last to exit this volatile space.
VGW Charts a Different Path Through Tribal Partnership
While some companies are stepping away, others are seeking alternative approaches. Sweepstakes operator VGW recently announced a partnership with the Kletsel Dehe Wintun Nation in California through its economic arm, Kletsel Economic Development Authority (KEDA). This collaboration aims to expand the reach of VGW’s social gaming platforms in the state.
As the U.S. sweepstakes market faces heightened scrutiny, Pragmatic Play’s exit could be the first of many, reshaping the supplier landscape and potentially opening the door to a regulated reentry in the future.
Source:
“Pragmatic Play withdraws from US sweepstakes market”, gamblinginsider.com, September 2, 2025
tough_nut
1 year ago
Moderator
Their exit really shows how uncertain the U.S. sweepstakes space has become with all the legal pressure. Feels like suppliers are starting to play it safe and position themselves for a more regulated entry down the line.
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