Pragmatic Play, a popular slots provider, is pulling its games from all US sweepstakes casinos. The news, first reported by Next.io, comes a day after Pragmatic announced its decision to exit California.
Pragmatic Play, Evolution AB Withdrew From Stake.us
Pragmatic Play initially restricted access to its games for sweepstakes players in California only. That report surfaced earlier Monday. Both Pragmatic and Evolution AB, another major slots supplier, withdrew from the Stake.us sweeps platform.
However, Pragmatic is reportedly dropping US sweepstakes altogether.
Evolution is an iGaming content distributor for popular studios like Big Time Gaming, NetEnt, Nolimit City, and Red Tiger. Both withdrawals were possibly related to Evolution, Pragmatic Play, and Stake.us being named in the civil enforcement action filed by the Los Angeles City Attorney’s office.
LA’s lawyers stated: “By masking its real money gambling platform as ‘America’s Social Casino,’ Stake.us and defendants create a predatory, dangerous gambling environment.
“This deliberately misleading environment draws in Californians across demographics, exposes them to substantial risks of gambling addiction, jeopardizes their and their families’ financial and mental health, and otherwise presents the type of hazards that California’s anti-gambling laws are intended to prevent.”
Pragmatic Play To Discontinue Licensing Its Games To Sweepstakes Casinos
Hacksaw Gaming was also named in the lawsuit, but the company has yet to announce any exits.
As for Pragmatic Play, this latest development means the Malta-based studio will be exiting the US sweepstakes market and “discontinue licensing its games” to such providers.
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.”
This is heartbreaking news for sweepstakes casinos and social casinos like Legendz, McLuck, Pulsz, and WOW Vegas. Popular titles such as the Gates of Olympus, Sugar Rush, and the Big Bass series are played by thousands.
California Assembly Bill 831 May Have Influenced Decision
Another contributing factor regarding Pragmatic Play’s decision to leave California is Assembly Bill 831, which would outlaw free-to-play casino-style games via a dual-currency model and company sweepstakes promotions.
The California Senate Appropriations Committee moved AB 831 to a vote on the Senate floor last week. The measure is one step closer to passage and a signature from the state governor.
The Social Gaming Leadership Alliance (SGLA) had also expressed its disappointment in the bill’s movement, urging lawmakers to push for “commonsense regulation over banning online social games.”
“SGLA urges Senators to vote ‘No’ on AB 831 and remains committed to working with state leaders to develop a smart and modern regulatory framework that prioritizes consumer safety, promotes innovation, protects California’s digital economy, provides tribal economic opportunities, and delivers economic benefits to the state without increasing taxes on California families,” the SGLA said.
The California session ends on Sept. 12.