U.S. Sweepstakes Casinos Miss Out on Pragmatic Play Providers due to Lawmakers Advocating for Ban
In a significant development for California's gaming industry, the Senate Appropriations Committee unanimously approved AB837 on August 29. This bill, if passed, could mark a turning point in the state's casino market.
The timing of Pragmatic's withdrawal from the sweepstakes market and the progress of AB837 have led some to speculate about a potential crackdown on sweepstakes casinos in California. Operators found running such platforms in the state could face penalties ranging from $1,000 to $25,000 if AB837 becomes law.
At the heart of the matter is AB837 itself. If passed, the bill would ban sweepstakes casinos using dual-currency systems in California. This could lead to a shift away from the sweepstakes model in the state's casino market.
Pragmatic's withdrawal from the sweepstakes market suggests that the sweepstakes model is under pressure from multiple sides. Some industry watchers believe Pragmatic may be preparing for a later entry into the regulated US iGaming market.
The exit of Pragmatic, along with other prominent game suppliers like Evolution, could pave the way for more game suppliers to follow suit and cut ties with the US sweepstakes casino market. However, the search results do not provide information on other game providers considering whether to continue working with operators relying on sweepstakes models like Pragmatic Play and Evolution.
As of now, AB837 is headed to the Senate floor for a third reading. If it passes, it must be passed by September 12, the end of the current legislative session. The future of sweepstakes casinos in California hangs in the balance as the fate of AB837 unfolds.
