Pragmatic Play Ends All US Sweepstakes Supply
Pragmatic Play, an online gaming content provider, has decided to stop supplying its games to US sweepstakes casinos, becoming the first major provider to withdraw from the sector as regulatory scrutiny intensifies.
The move comes after the City of Los Angeles filed a civil enforcement action against Stake.us, naming Pragmatic and other suppliers, even though Pragmatic itself is not active in the US-regulated market. A spokesperson for the company underscored Pragmatic’s commitment to compliance and transparent engagement with regulators, stating that the company is simply responding to regulatory developments and evolving legislation.
Yet, some see the decision as a signal that Pragmatic may be positioning itself to enter the US online casino market. Other industry peers are also adjusting. Evolution has reportedly pulled its games from Stake.us, while Light & Wonder and Play’n GO have long opposed sweepstakes casinos.
This shift coincides with California’s proposed Assembly Bill 831, which would explicitly criminalize supporting sweepstakes casinos without a tribal-state compact or regulatory approval. Although the bill was softened by adding the word “knowingly,” suppliers remain cautious.
Pragmatic’s exit from the current market underscores the increased pressure on sweepstakes casinos. As US lawmakers tighten regulation and oversight, more providers are likely to follow suit.
SGLA urging California to reject AB831
In the wake of California’s anti-sweepstakes legislation, the Social Gaming Leadership Alliance (SGLA) is urging California lawmakers to reject Assembly Bill 831 (AB831), which seeks to ban online social games with sweepstakes promotions.
The group argues the bill is misaligned with voter preferences, tribal economic opportunities, and the state’s revenue potential. Executive Director Jeff Duncan criticized the Senate Appropriations Committee for moving the bill forward, saying it ignores opposition from tribal nations, California Business, and players who prefer regulation over prohibition.
Furthermore, current economic models estimate that online social games currently provide over $1 billion in benefits to California, with the potential for an additional $200-$300 million annually through regulation.
The SGLA calls on Senators to vote to reject AB831 and advocate for a modern regulatory framework. “We urge lawmakers who are planning to vote in favor of AB831 to reconsider their stance and think about what their constituents actually want,” the statement read.
AGA reports consumers know sweepstakes are gambling
The American Gaming Association (AGA) has recently released new research showing that online sweepstakes casinos are widely used by consumers, despite operating outside regulated frameworks.
The research also shows that at least 90% of consumers know that sweepstakes are considered gambling. Additionally, 69% of consumers describe sweepstakes sites as real-money online casinos, and 68% say that their primary motivation is winning cash.
“These operators present themselves like legal, regulated platforms – but they operate outside the law and regulation,” said AGA Vice President of Government Relations, Tres York. “There are few if any responsible gaming tools, no regulatory oversight, and no consumer protections. It’s a dangerous subterfuge that puts players at real risk.”
