Pragmatic Play Ends Supply to US Sweepstakes Casinos as Lawmakers Push Ban

The online casino world in the US is seeing changes after Pragmatic Play made the decision to stop providing its games to sweepstakes casinos. The shift comes right as California lawmakers continue to push forward with new rules targeting this sector.

Good to know

• Pragmatic Play pulled its games from Stake.us following a civil lawsuit in Los Angeles.
• Evolution followed the same path, removing its titles from sweepstakes platforms.
• California’s AB837 bill could ban dual-currency sweepstakes casinos and introduce fines up to $25,000.

Pragmatic Play became the first well-known supplier to step back from sweepstakes casinos in the United States after being named in a legal action tied to Stake.us. Although the company isn’t active in the licensed US iGaming market, the lawsuit created enough risk for Pragmatic to exit quickly.

The move is already influencing the industry. Evolution, another major provider, has also withdrawn from Stake.us, showing that Pragmatic’s choice might not be an isolated one. Other suppliers are now weighing whether to continue working with operators that rely on sweepstakes models.

Many industry watchers see this development as more than just damage control. Some believe Pragmatic could be preparing for a later entry into the regulated US iGaming market, where its portfolio would face fewer legal complications.

Meanwhile, lawmakers in California are pushing forward with their own crackdown on sweepstakes casinos. On August 29, the Senate Appropriations Committee unanimously approved AB837, clearing it through the budget process without public debate. The bill, introduced by Assemblymember Avelino Valencia, will now head to the Senate floor for a third reading.

If AB837 becomes law, sweepstakes casinos using dual-currency systems would be banned in California. Operators caught running such platforms could face penalties starting at $1,000 and reaching up to $25,000. Lawmakers must pass the measure by September 12, when the current legislative session ends.

The timing of Pragmatic’s withdrawal and California’s legislative progress suggests that the sweepstakes model is under pressure from multiple sides. With legal actions in play and new state laws on the horizon, more game suppliers may soon follow Pragmatic and Evolution in cutting ties with this corner of the US casino market.

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