In a surprise move, popular slots provider, Pragmatic Play is pulling its games from all US sweepstakes casinos.
The news, first reported by Next.io, comes hot on the heels of Pragmatic’s withdrawal from California yesterday, but it seems the Malta-based studio now wants to go one step further and cut all ties with the sweepstakes vertical.
It’s likely as a result of the civil enforcement action filed against them last week by the Los Angeles City Attorney’s office, along with the general regulatory turmoil surrounding sweeps.
A Pragmatic Play spokesperson told Next.io:
“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.”
What makes the withdrawal somewhat curious is the fact that Pragmatic Play doesn’t currently supply games to real-money, regulated iGaming platforms in the US.
It supplies slots and live casino products to licensed operators in global markets, as well as to sweepstakes casinos and social gaming platforms in the US. At least up until now. Upon withdrawal, Pragmatic will temporarily have no presence in the US market.
However, this move could well be positioning the company for a future entry into regulated US iGaming, with the full exit serving as a way of nailing its colors to the mast.
Regulated iGaming platforms are highly risk-averse and often want to distance themselves from gray area formats like sweeps casinos. Other providers such as Play’n GO choose to only supply regulated markets too, actively dissociating themselves from sweepstakes in the process. Pragmatic could be following this pattern.
Pragmatic Withdrawal Leaves A Hole in the Sweepstakes Industry
The studio will certainly be missed by sweepstakes and social casino players. Based in Malta, it’s built a reputation for producing high-quality slots and live casino games that populate many of the biggest sweepstakes lobbies.
Titles like Sugar Rush, Gates of Olympus, and the Big Bass series are among the most played online slots of the last few years. By drawing inspiration from other providers’ popular mechanics, maintaining high production values, and creating a packed release schedule, Pragmatic has become a go-to name for many US players.
The withdrawal will leave a considerable hole in the lobbies of casinos like WOW Vegas, McLuck, and Pulsz, and it could prompt other studios to make a similar exit. At the same time, it will open up a significant opportunity for quality slots in the sweepstakes and social space.
Why the Withdrawal from Pragmatic Play?
As noted above, Pragmatic initially restricted access to its games for sweepstakes players in California only. That was yesterday.
We also saw Evolution AB, another major slots supplier, withdraw from the Stake.us sweeps platform. Evolution functions as distributor for popular studios like Nolimit City, Red Tiger, Big Time Gaming, and NetEnt.
Both withdrawals were most likely directly related to Stake.us, Pragmatic Play, and Evolution being named in the civil enforcement action filed by the Los Angeles City Attorney’s office. Hacksaw Gaming was also named, but we’re yet to see it announce any exits.
On top of that case, there’s also the California anti-sweeps bill – AB831 – to consider. It’s been making its way through the California Senate, and recently moved out of suspense, bringing it one step closer to passage and a signature from the State Governor.
There’s a chance AB831 could pass before the end of the California session on September 12, and if signed, it would effectively ban the sweepstakes format in the Golden State, the largest market for sweepstakes casinos in the country.
This would, of course, have implications for other elements of the supply chain, including game providers. In fact, AB831 contains the following wording, implicating the whole ecosystem:
“The bill would make it unlawful for any entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to knowingly support directly or indirectly the operation, conduct, or promotion of an online sweepstakes game within this state.”
This is all on top of similar proposals which have been signed into law in Connecticut, Montana, and New Jersey this year, along with anti-sweeps activity in Louisiana and Nevada. New York lawmakers have passed an anti-sweeps bill too, which is currently waiting for the Governor’s signature.
What’s Next for the Sweepstakes Industry?
It’s been a year like no other for sweepstakes, and rather than stay and fight it out, Pragmatic Play has decided to exit, likely soon shifting its focus to purely regulated markets.
A quick test by SweepsKings revealed that, at the time of writing, Pragmatic Play games were not playable at sweeps platforms in California. However, they were playable from other states for now, but we don’t expect this to last for long.
It’s likely we’ll see an official announcement from the studio itself soon, as well as from the casinos it’s been supplying.
As always, we’ll keep you updated with any major new developments, including game provider withdrawals and alternatives to popular Pragmatic slot games.
Author: Joseph Allen
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