Pragmatic Play Withdraws from US Sweepstakes Market

Recently, Pragmatic Play has pulled all its products from sweepstakes casinos, effectively leaving the US market. This decision comes amid new lawsuits being filed against sweepstakes casinos, particularly one aimed at Stake.us as Pragmatic Play was one of its suppliers. Check out our article for details on the lawsuit and Pragmatic Play’s decision.

The Sweepstakes Situation

Sweepstake casinos offer an alternative to real-money gambling. Instead of using dollars, you use virtual currency to play the games. However, many of these sites would allow players to redeem virtual currency for real money, which violates gambling laws. That’s why they are now banned in many states, such as:

• Nevada
• New Jersey
• New York
• Connecticut
• Arizona
• Washington
• Delaware
• Idaho
• Louisiana
• Michigan
• Montana
• Utah

Many other states, like California, are also considering bans and discussing new legislation to curb sweepstakes casinos. Any operator that provides games to these sites is also liable to face consequences, which is why some are now leaving the market. For Pragmatic Play, this was caused by the Stake.us lawsuit.

Pragmatic Play’s Withdrawal

Pragmatic Play removed all its content from such operators as the US continues to restrict sweepstakes casinos. Previously, it operated only in states where sweepstakes were legal and was always mindful of the laws. This decision also comes amid a civil suit being filed against Stake.us, where Pragmatic Play was listed as a defendant due to supplying games.

Pragmatic Play 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.

Pragmatic Play spokesperson

The company states it will continue to look for legal avenues to supply its games for the US market. While Pragmatic Play’s titles are available in Canada, US players could only access them through sweepstakes. That’s why some players are hopeful it will now acquire licenses to provide its games to online casinos.

The Stake.us Lawsuit

Recently, Stake.us was taken to court as LA City Attorney Hydee Feldstein Soto filed a civil suit against them. The argument is that the operator breaches gambling laws as the dual currency system is a loophole for real-money gambling. It also argues that the operator’s advertising is similar to the online casino version Stake.com. Additionally, the suit names several suppliers as defendants, such as:

• Pragmatic Play
• Evolution
• Big Time Gaming
• NetEnt

While similar lawsuits typically target only operators, this one also targets suppliers and Kick’s streaming platform. Companies must pay treble damages and cease offering or advertising their products in California. Although the case is ongoing, many companies have followed Pragmatic Play and stopped supplying their products to the operator.

California’s Sweepstakes Ban

California has joined states like New Jersey and Montana in banning sweepstakes. It recently approved Assembly Bill 831 by a 7-0 vote, which was introduced in the spring and faced multiple amendments. Currently, it prohibits sweepstakes and bans suppliers from working with such operators.

In today’s digital age, increased access to online gambling and virtual betting, coupled with the lack of strong age verification safeguards, puts our youth at serious risk of developing crippling gambling addiction.

Jason Anderson San Bernardino County District Attorney

While the bill would originally also criminalize players, this part was amended in the Assembly. Some tribal casinos and suppliers like Play’n GO support further restrictions, believing sweepstakes could impact the real money market. Meanwhile, companies like Publishers Clearing House continue to advocate for regulation.

Conclusion

As sweepstake casino restrictions continue to increase, suppliers like Pragmatic Play are withdrawing from the market. However, there is hope they will return through legal real money gambling sites. We hope their games will be available to US players in the future.