Now that Pragmatic Play Has Left US Sweeps Casinos, What's Next on the Roadmap?

The US gambling landscape remains fluid, with uncertainty looming in states like New York, Florida, and Texas. As regulations tighten and the prospects of future investigations loom large, a few industry stakeholders are implementing smart and calculated moves.

Take the case of Pragmatic Play, a popular iGaming games and software supplier that formally entered the country’s sweepstakes gaming industry. With one less popular supplier, many are asking: Will there be less variety and depth in games with Pragmatic’s exit? More importantly, where’s Pragmatic Play headed, and what can we expect next from this well-loved studio?

Software Vendors Get Dragged into the US Sweeps Legal Mess

Sweepstakes-based casinos have long operated in a grey area of gambling regulation. Recent legal actions, including a civil lawsuit against Stake.us, a major sweepstakes casino operator, filed by the City of Los Angeles, have pushed companies like Pragmatic Play to reassess their sweepstakes market participation. 

While Hacksaw Gaming and Evolution AB are the content suppliers included in the action, Pragmatic Play has become collateral damage. According to corporate and court documents, Stake.us features 594 casino games from Pragmatic Play, which represents 30% of its content library. So when something happens to an operator like Stake, there are ripple effects to its suppliers and partners. 

If the lawsuit succeeds, those named could face fines of up to $2,500 for each violation. Legal expert Daniel Wallach said the total penalties could reach hundreds of millions of dollars because of how large Stake.us’s operation is.

What Pragmatic Play Plans Next

According to the Pragmatic Play spokesperson, “the company will remain committed to the highest standards of compliance and will continue to engage transparently with regulators.” 

Pragmatic Play’s next move in the U.S. market remains uncertain. But, according to some industry watchers, Pragmatic Play may be currently working on the following plans:

• Actively assessing new state-by-state licenses in the US to operate in the legal online casino market aligned with its strategic goals. While those goals have not been clearly defined, the recent exit from the sweepstakes sector suggests a deliberate shift in direction;
• Maintaining its strong international presence beyond the U.S. market. The company continues to explore regulated expansion opportunities in other global markets, capitalizing on several jurisdictions with a legal landscape that supports sustainable growth;
• Entering the regulated iGaming market through sustainable and more compliant channels. There’s a strong possibility for a return via licensed online casino operations. 

The months ahead will be pivotal as Pragmatic Play charts its course in regulated markets. And for sweeps casino players, it’s now a waiting game with one of iGaming's popular suppliers in the spotlight.

References:

• Los Angeles City Attorney
• Daniel Wallach