It’s official.

Pragmatic Play, one of the biggest providers of casino games in the iGaming industry, is quitting the sweepstakes market.

They’re the first major provider to exit the sweepstakes casino vertical and it comes following ongoing pushback against these casinos.

The regulatory crackdown first started back in early 2024 and has been heating up ever since, reaching a point where it now seems as though sweepstakes casinos are in more trouble than people first thought.

It isn’t necessarily the end for sweepstakes casinos, but all signs point to this being more than just a temporary shake-up.

Pragmatic Play Will No Longer License Its Games to Sweepstakes Casino Operators in the US

The start of September hasn’t brought good news for sweepstakes casinos, with Pragmatic Play, a company that boasts award-winning slots, live casino games, and more, making a fast exit from the market.

Here’s what they had to say in a statement:

“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.

Pragmatic Play leaving the sweeps market now means that none of the sweepstakes casinos will be able to host its games anymore. This includes Stake.us, WOW Vegas, and McLuck, all of which have hosted hundreds of Pragmatic Play games over the years.

One of the biggest shocks is that these casinos will have to wave good-bye to Sugar Rush, one of the most popular slot games ever released. The slot itself is a huge money-maker for online casinos, so sweepstakes operators will be reeling from this.

Gates of Olympus, Big Bass Bonanaza, and Wolf Gold, some of Pragmatic Play’s other popular slots, are also being pulled off the table.

The worry for sweepstakes casinos here is that this will likely lead to a big drop-off in players for them. After all, Pragmatic Play’s catalogue of games has long been a major draw for players. Having them suddenly removed from these sites won’t go unnoticed, and many players will likely switch to alternate casino sites.

What’s Behind the Recent Pushback Against Sweepstakes Casinos

The pushback against sweepstakes casinos has gotten intense over the past couple of years.

Interestingly, when sweeps casinos first exploded in popularity back during the 2020 pandemic, there was no pushback at all.

They were seen as nothing more than a fun, legal alternative to traditional online casinos where you could play for free and not have to gamble any real cash.

But once the likes of Stake.us and Chumba Casino started hitting player counts well into the millions, state lawmakers started paying attention.

Initially, the American Gaming Association (AGA) put out a harsh statement against sweepstakes casino sites, and the legal issues have snowballed ever since.

So, what exactly is the problem with these operators?

The heart of the problem is that sweeps operators blur the line between gaming and real-money gambling, which has raised concern among lawmakers and regulators.

Yes, sweepstakes casinos do, indeed, let anyone play for free. After creating an account, you can effectively play slots and table games for as long as you like without betting a dollar. This is something that many players have been doing for years.

However, the problem arises from the fact that sweepstakes casinos have another option on the side: you can also play with “Sweeps Coins”. These coins can be redeemed for real-world prizes if you collect enough of them, effectively mimicking gambling.

The Sweeps Coins Controversy

If you step inside any sweepstakes casino, they all offer the chance to play with Sweeps Coins (sometimes, though, these coins have different names, such as with Stake.us, whose Sweeps Coins are called “Stake Cash”).

On average, 1 SC converts to $1.

So, if you win 100 Sweeps Coins, this will allow you to redeem $100 worth of prizes, with most sweepstakes casinos offering cash transfers, gift cards, and even cryptocurrencies in their redemption menus.

This, many argue, turns the experience from free-to-play fun into actual gambling, despite the fact you’re not betting real money.

Instead, what you’re doing is swapping out real money for Sweeps Coins, with the gambling principle still present.

A growing number of state lawmakers are furious about this, which is why many of them are actively pushing to ban sweepstakes casinos.

More States, Including New York, Looking to Ban Sweeps Operators

When sweepstakes casinos first hit the internet, they were legal everywhere.

But as of 2025, they’ve officially been banned in Washington, Michigan, and Montana.

And as we speak, more states than ever are actively passing bills to ban them, including California, Massachusetts, and Louisiana.

At the same time, New York is also pushing to ban sweepstakes casinos, which would cause a huge drop-off in players for the leading sites. The Big Apple isn’t happy about this, reflected in a recent statement:

“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” said New York State Gaming Commission Chairman Brian O’Dwyer.

With New York in particular, the state prohibits online platforms from offering gambling that involves risking anything of actual value, which is what they believe is the case with sweepstakes casinos, despite the fact these sites offer a free-to-play model.

If New York and a growing number of other states are successful with their proposed sweepstakes bans, it would be devastating for this iGaming vertical and likely lead to a position where operators are only legal in around 40 US states, whereas previously they were legal in all of them.

Play’n GO Will “Never” Supply Games to Sweepstakes Casinos

Pragmatic Play isn’t the only casino game provider that has a problem with sweepstakes casinos.

Play’n GO, another huge iGaming industry supplier, has outright refused to supply games to sweepstakes casinos from the very beginning.

CEO and co-founder of Play’n GO, Johan Törnqvist, recently said:

“Sweepstakes casinos do not operate inside a regulated framework and that’s not something we support. Our commitment to regulated markets is absolute. We will never supply our games to sweepstakes casinos.”

The belief here is that sweepstakes casinos simply don’t follow a regulated market model and are too risky to work with. There’s already a rising number of player-filed lawsuits against sweepstakes casinos, so supplying them with games does come with a certain level of liability that, seemingly, both Pragmatic Play and Play’n GO are intent on avoiding.

What Pragmatic Play’s Sweepstakes Exit Mean Might Mean for the Future

So, with Pragmatic Play pulling its popular games out of the sweepstakes casino market and many US states currently pushing for site bans, sweepstakes casinos are stuck in the middle of a challenging period.

Player drop-offs are likely to follow from this. It’s also possible that more casino game software providers will also follow suit by removing their games from leading sweepstakes casino sites, leading to further frustration.

It’s not all bad news, though. Sweepstakes casinos are going through a rough transitional period, but the sweeps casino industry itself is still booming with players and has all the capability to withstand the current controversy.

Players will, undoubtedly, continue to enjoy the ‘freemium’ model offered by these sites. Not to mention, the fact that pop culture figures like Drake, whose name is widely associated with Stake and Stake.us, continue to back sweepstakes casinos is a huge indicator they aren’t going anywhere.

Sweeps casinos are also huge on streaming platforms like Kick and Twitch, boasting a cult-like following of viewers. Again, Pragmatic Play might be jumping ship, but it’s far from over for sweepstakes casinos, which arguably have too many players to be completely wiped off the map.

For now, at least, it’s a case of waiting to see what happens.

As for Pragmatic Play, the company looks set to explore new licenses now that it’ll no longer be supplying its games to sweepstakes casinos.