Pragmatic Play has confirmed it will no longer license games to US sweepstake operators. The supplier stated that the decision was made in light of regulatory developments and evolving legislation.

This move will see its titles removed from sweepstake platforms in every state where they are available, regardless of whether restrictions have already been applied.

Growing Legal Pressure on Sweepstakes

Sweepstakes gaming has become a highly debated sector in the US, with lawmakers and regulators questioning its legal standing. In California, Attorney General Rob Bonta has proposed a Bill AB 831, which seeks to ban sweepstake casinos entirely. Gambling in the state remains limited to tribal reservations.

The push for prohibition is not unique to California. New Jersey has already banned sweepstakes, and other states are considering tighter restrictions. Some tribal groups have supported the moves, while others remain opposed.

Adding to the pressure, Hydee Feldstein Soto, City Attorney of Los Angeles, last week filed a wide-reaching civil lawsuit against operator Stake.us. The case cites violations of unfair competition and false advertising laws. Several suppliers working with Stake were also named as defendants.

A Compliance-First Approach

The company’s spokesperson said: “We remain committed to the highest standards of compliance and will continue to engage transparently with regulators.” The withdrawal shows Pragmatic Play’s focus on maintaining its reputation in highly regulated markets and avoiding what has become one of the most contentious areas of US gaming law.

Although the company has not previously offered iGaming products directly in the United States, its slots and other content are available to players in parts of Canada. Its exit from the sweepstake segment distances it from a market drawing attention from state attorneys and lawmakers.

Exploring New Licensing Options

While stepping back from sweepstakes, Pragmatic Play has confirmed it will continue to explore new licensing opportunities. The company has not specified which jurisdictions or verticals are being targeted, but industry observers speculate that a pause from sweepstakes could be a prelude to re-entering the US.

Analysts also note that Pragmatic Play’s withdrawal might pressure other suppliers to reconsider their involvement with sweepstake platforms, as lawsuits and new legislations gain momentum.

A Market in Transition

Pragmatic Play’s move highlights the uncertain future of sweepstake casinos in the US. With multiple states weighing bans and civil actions underway, suppliers and operators face a shifting legal landscape.

Whatever the company’s motive might be for exiting the market, it shows the risks of operating in a market with evolving regulations.