Pragmatic Play exits US sweepstakes market
Pragmatic Play will no longer license its games to sweepstake operators in the USA.
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
A spokesperson from Pragmatic Play has informed Gaming America that the supplier will be withdrawing from the US sweepstakes market.
In practise, this means the company will be inactive in the US for now. There is a possibility that in the future it may return to the country via the regulated iGaming market, but for now it is withdrawing the licensing of its games to all sweepstake operators in states where regulation is not already in place.
The Pragmatic Play statement included the comment: “We will continue to explore obtaining new licenses, in addition to the multiple licenses we already hold, in line with our business goals and needs.”
The state of play for sweepstakes in the US has become particularly fraught in recent times and last week a civil suit was launched in California against Stake.us and a number of its suppliers.
While not implicated in the suit, Pragmatic Play has nonetheless taken decisive action to remove itself from the developing situation.
Good to know: Pragmatic Play has been expanding its operations in LatAm and has partnered with TQJ to integrate Pragmatic Play’s portfolio of slots, live casino and virtual sports into the Bet do Milhão platform
The company puts this decision down to “regulatory developments and evolving legislation” while stressing that it “remains committed to the highest standards of compliance and will continue to engage transparently with regulators.”
California is the most prominent battleground for sweepstakes at the moment, and while the sector is facing a significant legal headwind, not all are in favor of Bill AB 831 which would outlaw the practice.
Recently Tribal stakeholders have been split on the issue, with some expressing concern that smaller Tribal communities with less well-established gaming economies could suffer unduly from the ban.
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