Pragmatic Play Pulls Out of US Sweepstakes Market

Pragmatic Play stops supplying games to US Sweepstakes casinos, citing regulatory changes, lawsuits, and legal risks.

Pragmatic Play, one of the most recognisable names in online casinos, has confirmed it is ending all supply agreements with Sweepstakes casinos in the US. The move, described as a “significant operational shift”, follows months of heightened regulatory attention and a lawsuit filed in California against Sweepstakes operators and their content providers.

Pragmatic Play said its decision was rooted in compliance concerns. A spokesperson explained:

“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.”

Lawsuit in Los Angeles sparks wider exit

Last month, LA City Attorney Hydee Feldstein Soto filed a lawsuit targeting Stake.us and several suppliers, including Pragmatic Play, alleging that Sweepstakes casinos function as unlicensed gambling operations.

At the centre of the case is the dual-currency system used by Stake.us, which prosecutors claim blurs the line between free-to-play social gaming and real-money online gambling, between Sweepstakes and traditional casinos.

The lawsuit argues that while the model technically avoids cash betting, the marketing and branding closely mirror Stake.com’s real-money platform, making the distinction largely cosmetic.

Other suppliers, such as Evolution and Hacksaw Gaming, have already withdrawn their games from California platforms. Pragmatic Play’s move goes further: it will no longer provide games to any US Sweepstakes casinos, regardless of the state.

What’s at stake in the lawsuit?

The LA complaint is the first civil enforcement action of its kind against a Sweepstakes operator in the US. Soto’s office is working with Susman Godfrey LLP, a powerful litigation firm already active in gambling-related class actions.

The complaint seeks not only to halt Stake.us’ operations in California but also to impose heavy financial penalties. Civil fines could reach $7,500 per violation if senior citizens or disabled individuals are involved. Full restrictions for California residents who lost money on Sweepstakes casinos are also being pursued.

For suppliers like Pragmatic Play, the lawsuit created exposure well beyond their control: a risk of being painted as enablers of illegal gambling according to the US gambling regulations.

Lawmakers add to the pressure

Alongside the lawsuit, new legislation has put the sector under scrutiny. California's Assembly Bill 831 has already cleared the Senate Appropriations Committee and is awaiting a floor vote.

The bill, introduced by Assembly member Avelino Valencia, seeks to criminalise not only the operation of Sweepstakes casinos but also supplying games, providing marketing services, or even running affiliate promotions for them. Punishment could include misdemeanour charges, fines between $1,000 and $25,000, and up to a year in county jail.

California isn’t acting alone. States such as Connecticut, New Jersey, and Montana have already moved to ban Sweepstakes casinos outright in 2025. On the other hand, AGA pushes for the regulation of Sweepstakes casinos, which also adds to pressure.

The bigger picture for online gambling

Sweepstakes casinos provided a legal workaround: US players could access casino games like slots and table games without breaching federal gambling laws. With platforms operating on a Sweepstakes model, players can redeem cash prizes with virtual currency.

Providing a gateway into the US market for companies like Pragmatic Play, Sweepstakes casinos were perfect - particularly at a time when regulated online gambling was still patchy across states. But with lawmakers turning up the heat, that bridge is quickly collapsing.

Pragmatic Play’s departure signals a turning point. Sweepstakes casinos losing access to top-tier content providers will reduce game variety and player appeal. For regulators, it is evidence that the pressure campaign is working.

What this means moving forward

Built on a reputation for global expansion across regulated markets, Pragmatic Play shows a clear preference for long-term compliance over short-term revenue by pulling out of Sweepstakes casinos. As the company put it:

“We remain committed to the highest standards of compliance and will continue to engage transparently with regulators.”

This decision could position Pragmatic Play favourably as US states continue to expand fully regulated online gambling frameworks.

For Sweepstakes casinos, however, the future looks far more uncertain, and they may struggle to maintain relevance in a shifting landscape under growing legal scrutiny.

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By Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

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Last updated: September 8, 2025

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Pragmatic Play pulls out of US Sweepstakes market

Lawsuit in Los Angeles sparks wider exit

What’s at stake in the lawsuit?

Lawmakers add to the pressure

The bigger picture for online gambling