As sweepstakes gambling in California continues to be a controversial topic in the legislature and the courts, another major supplier has decided that enough is enough.
Playtech is no longer supplying content or services to sweeps operators in the Golden State, a spokesperson told SBC Americas.
“We continually assess our position across jurisdictions, taking into account a range of factors,” the spokesperson said. “We are not supplying social gaming operators on sweepstakes in California at this time.”
Playtech will continue to make decisions about its presence and partnerships in jurisdictions based on a wide range of considerations on a case-by-case basis, in consultation with operators in the markets in which it operates.
SBC Americas confirmed that the decision came from Playtech’s end after multiple notable sweeps operators, including VGW (owner of Chumba Casino and LuckyLand Slots) and B-Two Operations’ McLuck confirmed that Playtech games were no longer available on their sites in California.
“We can confirm that games provided by Playtech – a third-party games supplier – are no longer available for our players in California,” a VGW spokesperson told SBC Americas. “We understand these players may be disappointed and apologise for any inconvenience or frustration caused.
“We cannot speak to the decisions of third-party games providers but from time to time, licensing arrangements with games suppliers evolve for a variety of reasons. We continue to have a positive relationship with Playtech. However, we are not reliant on third-party games suppliers and our brands still offer a vast library of world-class free-to-play games, many of which are created by our amazing in-house games studios that provide our players with leading, exclusive content.”
Playtech not named in lawsuit, but likely observing
British-based Playtech, a major provider of gaming content and solutions across North America, is the latest company to decide that a presence in the sweepstakes market is not worthwhile in the current Californian climate.
This week, Pragmatic Play, which does not work with any regulated real-money online casinos in the U.S., confirmed to SBC Americas that it will stop working with sweepstakes casinos anywhere in the country. McLuck, for one, told SBC Americas that it will cease offering that company’s games as of Monday, Sept. 8.
Pragmatic Play made that call after being named as one of several defendants in a precedent-setting lawsuit filed by the office of Los Angeles City Attorney Hydee Feldstein Soto last month. The suit against sweepstakes operator Stake.US and a group of suppliers, including Pragmatic Play, Evolution and Hacksaw Gaming, alleges that Stake.US operates a de facto illegal gambling site and violates internet gambling, unfair competition and false advertising laws.
Evolution, Pragmatic Play, and Hacksaw all removed their content from Stake.us after the suit was filed, with some leaving California entirely. Now, Playtech, which is not part of the lawsuit, has followed suit.
California sweeps bill awaits vote with new amendment
While this all goes on, the bill that would explicitly ban sweepstakes in California awaits a Senate vote.
AB 831 was amended this week to clarify that it only targets ongoing sweepstakes-style gambling, not the kind of marketing sweepstakes promotions offered on a limited basis by the likes of Starbucks and McDonald’s. Another change adds a new section clearly stating that the bill would only apply to people or entities who “knowingly and intentionally” engage in, promote or facilitate online sweepstakes games that utilize a dual-currency system, not to service providers that may be unknowingly or unintentionally used in connection with online sweeps.
AB 831 is strongly backed by the Yuhaaviatam of San Manuel Nation, other major gaming tribes, and the California Nations Indian Gaming Association (CNIGA). However, some limited opposition has emerged in the last couple of weeks.
Four smaller tribes have spoken out against it, including VGW’s new tribal partner, the Kletsel Dehe Wintun Nation of the Cortina Rancheria, as has longtime sweepstakes contest operator Publishers Clearing House (PCH), now owned by a social gaming company. The fourth and latest opposing tribe, the Mechoopda Indians of Chico Rancheria, submitted an opposition letter to the California Senate on Sept. 3.
Cardroom advocacy group the California Cities Gaming Authority and multiple cities that host cardrooms also opposed the bill before the latest amendment.
The bill awaits a vote at third reading in the Senate. If it passes there, it must be reapproved in the Assembly after being gutted and amended post-passage. The first year of California’s two-year legislative session ends Sept. 12, meaning AB 831 must either pass in the next few days or be put on hold for months.
