Pragmatic Play withdraws from US sweepstakes market
A spokesperson from Pragmatic Play has announced the supplier's withdrawal from the controversial sweepstakes market.
Key points:
– Pragmatic Play will stop licensing its games to US sweepstake operators
– The decision has been taken “in light of regulatory developments and evolving legislation”
– The supplier will continue to explore new licensing options
Pragmatic Play’s games will soon no longer be available on any sweepstake platform in the US.
A spokesperson from the company has told Gambling Insider that the decision to discontinue licensing its games in any states where restrictions were not already in place has been made “in light of regulatory developments and evolving legislation.”
Sweepstakes are a much-debated vertical in the US and Bill AB 831, brought by Attorney General Rob Bonta, seeks to ban them in California, where gambling is only legal on tribal reservations.
The idea of banning, as has happened in New Jersey, has so far been backed by some tribal stakeholders and opposed by others, but it isn’t the only legal snowball being thrown at sweepstakes operators and suppliers.
Last week, Hydee Feldstein Soto, City Attorney of Los Angeles, brought a sweeping civil suit against operator Stake.us on grounds of the state’s unfair competition and false advertising laws.
Good to know: Pragmatic Play slots are available to play online in parts of Canada, but the supplier is not yet active anywhere in the USA for iGaming
Many of Stake’s suppliers were also listed as defendants in the case and, although Pragmatic Play were not implicated, it has taken the decision to exit the fraught legal environment voluntarily: “We remain committed to the highest standards of compliance and will continue to engage transparently with regulators.”
Whether Pragmatic Play will now take steps to enter the US iGaming market remains to be seen, but Gambling Insider was told that the provider will be continuing to explore new licences in line with its business goals and needs.
What those business goals and needs are exactly is not yet clear but a retreat from the controversial sweepstake’s landscape before returning through alternative verticals seems a distinct possibility.
Gambling Insider delivers the latest industry news, in-depth features, and operator reviews that you can trust. Our team combines rigorous editorial standards with decades of specialized expertise to ensure accuracy and fairness. We are committed to delivering clear, impartial, and dependable coverage across the global gambling sector.
