As California moves closer to regulating or banning online sweepstakes-style gaming, major software provider Playtech has stopped offering its games to sweepstakes operators in the state. The decision reflects mounting legal pressure and shifting industry dynamics.
Playtech Confirms Exit from California Sweepstakes Scene
Playtech has officially halted its content and services to sweepstakes gaming platforms in California. A spokesperson for the company said, “We continually assess our position across jurisdictions, taking into account a range of factors. We are not supplying social gaming operators on sweepstakes in California at this time.”
The decision was initiated by Playtech, not the platforms themselves. Major operators including Chumba Casino and LuckyLand Slots, owned by VGW, along with McLuck from B-Two Operations, confirmed the removal of Playtech games from their California offerings.
“We can confirm that games provided by Playtech – a third-party games supplier – are no longer available for our players in California,” a VGW spokesperson stated. They added, “We continue to have a positive relationship with Playtech. However, we are not reliant on third-party games suppliers and our brands still offer a vast library of world-class free-to-play games, many of which are created by our amazing in-house games studios.”
Legal Backdrop: Industry Faces Regulatory Challenges
Playtech’s move follows a similar decision by Pragmatic Play, which exited the U.S. sweepstakes market after being named in a lawsuit led by Los Angeles City Attorney Hydee Feldstein Soto. The suit targets Stake.us, its streaming partner Kick, and game developers including Pragmatic Play, Evolution, and Hacksaw Gaming, alleging illegal gambling practices and deceptive marketing.
Although Playtech was not named in the lawsuit, its departure from California aligns with a broader trend of suppliers distancing themselves from sweepstakes platforms as regulatory scrutiny increases. After the lawsuit was filed, the named companies pulled their content from Stake.us, with some exiting California entirely.
This cautious approach appears to be gaining momentum, especially among providers with more significant exposure to regulated online gambling markets. Playtech, for instance, has a substantial presence in states like New Jersey and Pennsylvania through partnerships with operators such as DraftKings and BetMGM.
Lawmakers Consider Ban on Sweepstakes-Style Gaming
At the same time, California l
egislators are reviewing AB 831, a bill aimed at banning dual-currency sweepstakes games. The bill was recently amended to clarify that it would not apply to promotional sweepstakes offered by mainstream brands like McDonald’s or Starbucks. It also specifies that only those who “knowingly and intentionally” promote or run these games would be affected, not uninvolved service providers.
The bill enjoys strong support from key tribal stakeholders, including the Yuhaaviatam of San Manuel Nation and the California Nations Indian Gaming Association (CNIGA). However, opposition has emerged. Four smaller tribes, including VGW’s partner, the Kletsel Dehe Wintun Nation, and the Mechoopda Indians of Chico Rancheria, have voiced concerns, along with Publishers Clearing House, now owned by a social gaming firm.
AB 831 is currently awaiting a third reading in the Senate. If approved, it must return to the Assembly for final clearance. Lawmakers are up against a tight deadline, with the legislative session ending September 12.
Source:
“Playtech stops supplying to sweepstakes operators in California”, x.com, Sep 5, 2025.
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