In a move that underscores growing unease within the U.S. sweepstakes landscape, Pragmatic Play has chosen to withdraw its content from the vertical altogether. The prominent game provider confirmed it will no longer license its titles to sweepstakes operators in the United States, a decision shaped by increasing legal uncertainty and shifts in regulatory momentum.
A company spokesperson stated the exit comes “in light of regulatory developments and evolving legislation,” highlighting the volatile nature of the market and its shifting legal foundations. While the company has not been targeted in any legal actions, the growing risks facing sweepstakes casinos and their content partners appear to have spurred Pragmatic’s decision to walk away.
Legislative Pushback Signals Broader Challenges
The legal climate surrounding sweepstakes casinos has rapidly intensified in recent months, with California emerging as a key battleground. Assembly Bill 831 (AB 831) – proposed by Attorney General Rob Bonta – seeks to ban the operation and support of sweepstakes-style casinos in the state, where gambling is only permitted on tribal lands.
Meanwhile, AB 837, a companion bill sponsored by Assemblymember Avelino Valencia, aims to outlaw sweepstakes platforms using dual-currency models. The bill sailed through the Senate Appropriations Committee on August 29 with unanimous support and is now poised for a vote on the Senate floor ahead of the September 12 legislative deadline. It proposes penalties of up to $25,000 for violators.
While sweepstakes operators face mounting legal threats, content suppliers are also being drawn into the fray. Last week, Stake.us, one of the most visible sweepstakes platforms, was hit with a civil lawsuit filed by Los Angeles City Attorney Hydee Feldstein Soto. The complaint cites violations of California’s unfair competition and false advertising laws. Although Pragmatic Play was not named as a defendant, the growing number of suppliers caught in similar lawsuits may have triggered a preemptive exit.
A Calculated Exit – And Possibly a Strategic Pivot
Pragmatic Play’s decision to exit the U.S. sweepstakes sector places it ahead of the curve, as the first major supplier to formally break ties with the model. The move, however, raises a larger question: is this an early step toward future participation in the regulated U.S. iGaming space?
While the company remains inactive in U.S.-licensed iGaming markets for now, it has confirmed it is “continuing to explore new licences in line with its business goals and needs.” No further details have been disclosed, but the retreat from sweepstakes could clear the path for an eventual, more compliant reentry via licensed avenues.
Other providers may soon follow suit. Evolution, another high-profile supplier, has already withdrawn its games from Stake.us, further signaling that pressure on the sweepstakes ecosystem is reshaping the supplier landscape.
Not All Are Backing Away: VGW Finds Tribal Ally
As some players retreat, others are forging new paths. Sweepstakes operator VGW has responded to the legislative squeeze in California by forming a strategic alliance with the Kletsel Dehe Wintun Nation. Their collaboration aims to expand the reach of social gaming experiences under the umbrella of the Kletsel Economic Development Authority (KEDA).
This alternative approach suggests that while some operators exit the sweepstakes stage, others are reshaping it—with tribal partnerships possibly becoming the next frontier in legally compliant digital gaming.
Source:
“Pragmatic Play withdraws from US sweepstakes market”, gamblinginsider.com, September 2, 2025
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