Pragmatic Play is quietly stepping away from the US sweepstakes casino market — and it’s not just a small shuffle. This is the first major game supplier to exit a market that’s been drawing growing scrutiny from regulators, lawmakers, and, of course, traditional gaming lobbyists.
While some players may be disappointed to see Pragmatic Play’s popular slot titles disappear from platforms like JefeBet and High5 Casino, the bigger picture is more nuanced. This massive move says a lot about where the industry is headed, who’s staying in the game, and how game developers and suppliers are picking their battles.
At its core, this is purely a compliance call, and it seems that Pragmatic Play is just getting ahead. Pragmatic Play confirmed through an email that the company will no longer license its games to sweepstakes casinos in US states where there aren’t already bans in place, such as Texas, Florida, and New York. The biggest reason is regulatory developments and evolving legislation.
What this means essentially is that the legal climate around sweepstakes gambling is getting more intense. Pragmatic obviously doesn’t want to be caught in the middle of it, so they’re shifting.
The decision follows a civil enforcement action filed by the City of Los Angeles against Stake.us, one of the biggest sweepstakes casino platforms in the US. Pragmatic Play was listed in the case — not necessarily as a direct defendant, but as one of several suppliers whose games appeared on the platform and therefore loosely tying them into the litigation.
The lawsuit alleges violations of unfair competition and false advertising laws, which is a big swing from city prosecutors and a sign that local and state authorities are increasingly willing to go after not just the operators, but the companies enabling them to do their business.
Pragmatic Play apparently saw the writing on the wall and chose to step away before things escalated. Is the industry going to spiral downward? Nobody knows, but it’s a gamble that Pragmatic Play didn’t want to be involved with.
For those unfamiliar with the industry, sweepstakes casinos operate in a grey zone. They offer casino-style games that don’t technically count as “real money” gambling under federal law because players play the games using virtual currencies like Gold Coins or Sweeps Coins. There’s no requirement to make a purchase or deposit money, which makes this more of a sweepstakes than a casino.
But it’s easy to see how the model walks a fine line, and now, lawmakers are drawing clearer boundaries.
California’s Assembly Bill 831 is currently moving through the state legislature, and if passed, it could criminalize companies that knowingly support or enable online sweepstakes games. This could possibly include content suppliers like Pragmatic Play, geolocation providers, payment processors, sweepstakes and social casino operators, and even media affiliates.
The bill was recently amended to soften the language a bit, as they added the word “knowingly,” which offers some breathing room for suppliers that rely on aggregators. Still, it seems that the message is clear that the regulatory tide is turning.
What really makes this interesting is that Pragmatic Play isn't even active in the licensed US iGaming market yet. That raises an obvious question — if they’re not operating in regulated markets, why the sudden exit?
Here’s a theory that’s gaining traction in online forums and circles — this isn’t a retreat. It’s a reset.
By severing ties with sweepstakes casinos, Pragmatic Play is cleaning up its compliance record and positioning itself for future opportunities in the regulated iGaming space with operators such as FanDuel and DraftKings. Of course, that’s where the real money is. The US iGaming market is growing, albeit slowly and state-by-state. But if and when it opens up further, regulators are going to want to see clean hands, so Pragmatic Play is washing them right now.
We see this as potentially being Pragmatic’s way of signaling, “We’re serious about playing by the rules.”
If this is the case, other suppliers might soon follow suit. Evolution, for instance, has also reportedly pulled its games from Stake.us in California. That could be a hint that this might be the beginning of a broader industry shift away from the sweepstakes model.
Of course, this is all speculative, but it’s worth thinking about if you’re into the sweepstakes casino market.
If you’ve already been spinning the reels of Pragmatic Play titles like Gates of Olympus or Sweet Bonanza on sweepstakes platforms like JefeBet, this is going to sting a bit. Those games will be gone as soon as Monday.
However, all is not lost. The sweepstakes casino space is still filled with tons of games from other top-tier providers. And new studios are entering the space all the time with hot, fresh content to keep you playing.
Plus, not all suppliers are pulling out — at least not yet. Some have taken more of a “wait and see” approach, watching how the legal climate shifts before making a call to jump ship or stay the course. So while Pragmatic’s exit is a big deal in the industry overall, it doesn’t mean the end of the sweepstakes experience for US players. Regardless of what happens, it won’t happen overnight.
With that said, it’s a reminder to pay attention to how these platforms operate. The more regulated the environment, the better it usually is for the player in the long run, as you can expect better security, more accountability, and clearer recourse if something goes wrong.
The company hasn’t laid out its next move, but it's clear that expansion is still on the table.
Given the company’s strong presence in Canada and Europe, it wouldn't be surprising to see Pragmatic start pushing for state-by-state licensing in the US once the dust settles. After all, they’ve got a huge portfolio of insanely popular games and a global brand to back it up. We can’t imagine a big name like this would just fold and crash.
The way we see it is while they’re exiting one part of the US market, the door is wide open for a return — just in a more regulated, traditional format. We’re sure we’ll be hearing from them again.
Sure, it surprised us as well, but Pragmatic Play leaving the US sweepstakes casino market isn’t just another industry headline. It’s a signal that the legal landscape is shifting, and suppliers are taking it seriously — as they should.
For players, it means there is one less game provider on sweeps platforms, but it also might mean a better-regulated environment down the line, especially if this marks the start of a broader industry cleanup.
For Pragmatic Play, this could be a smart long-term play, and you can bet they’re moving the chess pieces. Cutting ties now could clear the path for future growth in the regulated US iGaming space.
The sweepstakes model might be in for a rough ride over the next few years, but casino gaming in the US isn’t going anywhere. It’s just changing, and companies like Pragmatic Play are adapting to stay in the game.