Notorious iGaming developer, Pragmatic Play, announced their withdrawal from the US sweepstakes casino market this week.
News comes via an official statement from the software provider, which reads: “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.
“We remain committed to the highest standards of compliance and will continue to engage transparently with regulators.”
The retreat follows a City of Los Angeles-led lawsuit against Stake.us, a sweepstakes platform, which directly names Pragmatic Play as an “accomplice” to a “dangerous gambling environment.”
Now, the question beckons: how will this abrupt exodus impact the domestic sweepstakes scene? And, more pertinently for players, could Pragmatic Play return to the US under a revised strategy?
Why Pragmatic Play has cut ties with the sweepstakes market
Whilst Pragmatic Play’s statement on the matter is understandably vague, several tidbits hint at possible reasons for the group’s sudden sweepstakes departure.
First, Pragmatic cites “regulatory developments” as a primary concern. Sentiments toward sweepstakes platforms have soured in recent months – with many states seeking to outlaw social casinos.
However, legal online casino gaming remains illegal in more than 50% of states. Meanwhile, sweepstakes platforms – albeit unregulated – offer services in virtually every US region.
Pragmatic Play was therefore left at a crossroads: either stick with the current modus operandi at the risk of potential legal ramifications, or exit, regroup and develop a new US-focused scheme. The latter won out.
What Pragmatic Play’s sweepstakes withdrawal means for players
The Gibraltar-headquartered firm is renowned for its impressive real money games catalogue – with Sweet Bonanza, Gates of Olympus and an ever-expanding Big Bass series of slots among its top-rated products.
Pragmatic’s retreat from the US sweepstakes market sees its entire portfolio removed from all platforms with which it had previously partnered.
Although this revokes player access to a significant portion of the industry’s pre-eminent content, those in states where legal online casinos are available may find Pragmatic Play’s products on new platforms if the developer opts to return in partnership with licensed operators.
National pressure on sweepstakes ramps up
Several states have issued warnings and/or legal proceedings against sweepstakes operators since the turn of the year.
New York, Arizona, Maryland, Montana, Mississippi and, more recently, California, have each pushed anti-sweepstakes legislation in 2025. This has led many operators to pre-emptively withdraw from multiple US regions for fear of financial and legal punishment.
Pragmatic Play’s decision to leave the market is further evidence of this industry-wide alarm; the software provider pulled away despite not facing tangible consequences for working with unregulated platforms.
Whether additional states follow in the footsteps of the aforementioned anti-sweepstakes states remains to be seen.
Still, one thing is certain: Pragmatic Play’s exit points to a deep-rooted lack of confidence in the modern social casino space.
