Pragmatic Play to Stop Supplying Games to US Sweepstakes Casinos

Pragmatic Play has officially announced that its games will no longer be available at sweepstakes online casinos in the US.

The well-known software provider has decided to stop licensing its titles to US sweepstakes operators following increased regulatory scrutiny in the country. Meanwhile, advocates of traditional online gambling also continue to lobby against the sweepstakes sector.

With several US states already banning sweepstakes casinos and the latest civil suit against Stake.us in California, Pragmatic Play’s decision to exit the US sweepstakes market is justified.

Is Pragmatic Play Preparing to Enter the Regulated US iGaming Market?

The civil lawsuit in California against Stake.us also includes several content providers who supply their games to players in this US state. Alongside Evolution and Hacksaw Gaming, Pragmatic Play is one of them. The Office of the Los Angeles City Attorney filed this lawsuit, intending to stop an illegal gambling business, as they claim.

Evolution was the first to withdraw from the Stake.us platform in California, and Pragmatic Play followed in its footsteps. However, the company then decided to withdraw entirely from the controversial sweepstakes vertical.

Pragmatic Play supplied its games to online sweepstakes casinos in the United States. However, the provider still hasn’t officially expanded its reach into the US legal iGaming market. Therefore, the latest developments and the announcement from Pragmatic Play are seen by some as a signal that the company plans to enter the US gambling scene.

Leaving the sweepstakes gaming vertical suggests that the reputable casino game provider is unwilling to risk its ambitions for expanding in the US legal market.

Explaining the new developments, the spokesperson from Pragmatic Play has stated:

“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.”

Sweepstakes Casinos Face Legal Scrutiny

Sweepstakes casino platforms are under serious legal scrutiny, and some US states have decided to ban these sites. New Jersey, Delaware, New York, and Louisiana have all taken legal actions against these brands, thus joining Washington, Montana, and Connecticut, where sweepstakes casinos are already fully prohibited.

Arkansas, Mississippi, Maryland, Michigan, Pennsylvania, and Nevada have also issued cease-and-desist letters or advanced legislation that will completely prohibit sweepstakes casinos.

Last year, one of the largest sweepstakes operators, VGW, was forced to exit around dozens of US states, which clearly demonstrates how state regulators feel about sweepstakes platforms.

Could Bill AB 831 Be a Game-Changer?

In California, the effort to criminalize sweepstakes operators and affiliates working with them is a step closer after Bill AB 831 advanced out of the Senate Appropriations Committee. The bill, introduced by Attorney General Rob Bonta, was unanimously approved with no debate and is now ready to be sent to the Senate, which will decide whether the bill will be signed into law.

The proposed legislation targets not only sweepstakes operators but also suppliers who partner with them. If AB 831 becomes a law in California, it would make it illegal for any “entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state.”

It means that the law will introduce criminal penalties against companies that support sweepstakes platforms. Therefore, it seems that Pragmatic Play and Evolution will not be the only iGaming suppliers that will stop their cooperation with sweepstakes brands in the coming days.

Finally, the bill also makes a person “who violates these provisions guilty of a misdemeanor punishable by a fine not less than $1,000 nor more than $25,000, or by imprisonment in the county jail not exceeding one year, or by both the fine and imprisonment.”