Pragmatic Play made a major operational changes in North America after being named in a major lawsuit last week.
The European online casino content supplier is no longer allowing sweepstakes casino operators in the U.S. to offer its content amid regulatory scrutiny across the country. Pragmatic Play made the operational change to no longer work with sweepstakes. The company does not work with any regulated real-money online casinos in the U.S.
“Pragmatic Play has chosen to discontinue licensing its games to sweepstake operators in U.S. states where restrictions were not already in place, in light of regulatory developments and evolving legislation,” a spokesperson told SBC Americas. “We remain committed to the highest standards of compliance and will continue to engage transparently with regulators.”
The content supplier has existing partnerships in Canada but made operational changes in the U.S. amid regulatory scrutiny and recently being named in a California lawsuit.
Lawsuit takes aim at Pragmatic Play and other suppliers
Last month, the office of Los Angeles City Attorney Hydee Feldstein Soto filed a lawsuit against sweepstakes operator Stake.US and a group of suppliers, including Pragmatic Play.
The suit, which also named Evolution as a co-defendant, alleges Stake.US operates a de facto illegal gambling site and violating internet gambling, unfair competition and false advertising laws.
Soto, on behalf of the city’s residents, claims Stake.US provides a workaround to offer real-money gaming through its dual-currency system, violating state law.
The suit notes Stake.US uses identical branding to real-money gambling site Stake.com.
Pragmatic Play, Evolution and other game studios and suppliers were included in the suit for allegedly knowingly hosting content and providing access to an illegal gambling site.
Evolution and Pragmatic Play have both pulled their content from California amid the case. Hacksaw Gaming, another co-defendant, also removed its content from the state.
The suit is seeking treble damages and for a California Superior Court to enjoin both the suppliers and Stake.US from advertising and offering the product in the Golden State.
Potential sweepstakes ban in California
Pieces of legislation are also impacting how Pragmatic Play approaches U.S. sweepstakes.
Last week, the California Senate Appropriations Committee approved Assembly Bill 831 by a 7-0 vote. The piece of legislation proposes prohibiting sweepstakes gambling in California and currently includes a provision making it illegal for suppliers to conduct business with sweepstakes operators in the state.
In 2025, sweepstakes casino bans have been signed in Connecticut, New Jersey and Montana.
