Pragmatic Play exits US sweepstakes amid regulatory pressure

• Pragmatic Play stops licensing games to US sweepstakes operators due to evolving legislation
• The move follows a civil enforcement action against Stake.us and other suppliers in California
• Industry observers suggest the decision may signal a potential push into regulated US iGaming

Pragmatic Play has become the first major iGaming supplier to exit the US sweepstakes casino market, citing regulatory changes and evolving legislation, Next.io reports exclusively after speaking to an anonymous source at the company.

The decision comes amid heightened scrutiny following a civil enforcement action by the City of Los Angeles against Stake.us, which named several major suppliers including Pragmatic.

A company spokesperson told Next.io:

“Pragmatic Play has chosen to discontinue licensing its games to sweepstake operators in US States where restrictions were not already in place, in light of regulatory developments and evolving legislation. We remain committed to the highest standards of compliance and will continue to engage transparently with regulators.”

The exit is likely to be welcomed by state gaming regulators, though Pragmatic Play is not currently active in the licensed US iGaming market. Industry analysts suggest the move could indicate a future expansion into traditional online casino operations in the country.

Next.io also notes that Evolution has pulled its games from Stake.us in California, and other suppliers, including Light & Wonder and Play’n GO, have historically avoided the sweepstakes market.

Play’n GO CEO Johan Törnqvist previously said:

“Sweepstakes casinos do not operate inside a regulated framework and that’s not something we support. Our commitment to regulated markets is absolute. We will never supply our games to sweepstakes casinos.”

The development coincides with California’s Assembly Bill 831, which, if passed, could criminalise suppliers who knowingly support sweepstakes casinos in the state. Amendments to the bill now include the term “knowingly,” potentially limiting liability for suppliers using game aggregators.