Strategic Withdrawal
Playtech just said the quiet part out loud: sweepstakes casinos aren’t worth the hassle.
At its H1 2025 earnings call, the global gambling giant revealed that supplying games to sweeps platforms like Chumba Casino, LuckyLand Slots, and McLuck made up only about 1% of its overall revenue – “single-digit millions” in the words of CFO Chris McGinnis.
In other words: small potatoes. And with California regulators sharpening their knives, Playtech has decided to walk away.
What Happened?
Earlier this month, Playtech confirmed it had pulled its content from sweepstakes casinos in California. That means no more Playtech slots or live dealer games on Chumba, LuckyLand, or McLuck.
The timing isn’t random. California is moving ahead with AB 831, a bill that could outright ban sweepstakes-style casinos, while the LA City Attorney has already filed a splashy lawsuit against Stake.us and major suppliers Evolution and Hacksaw.
Rather than risk getting caught in the crossfire, Playtech decided to wash its hands off and exit the stage.
Why Call It “Immaterial”?
According to McGinnis, sweeps simply don’t move the needle:
“Overall, we see it as immaterial, circa 1% of overall group revenues or single-digit millions kind of amount on a revenue basis.”
CEO Mor Weizer echoed that, saying Playtech always took a conservative approach to sweeps, working only with a handful of vetted operators in limited states. And when California started sharpening its sword, Playtech was “one of the first to pull out.”
The Bigger Industry Picture
Playtech isn’t the only one heading for the exits. In the past few months, Pragmatic Play, Evolution, and Skywind have all scaled back or cut ties with sweepstakes operators, showing just how fast suppliers are backing away from the gray zone.
And it’s not just suppliers blinking, states are tightening the screws, too:
- Montana, Connecticut, and New Jersey have already passed bans this year, putting sweepstakes casinos on notice that their legal leeway is running out.
- California is pushing forward with AB 831, a bill that could outlaw dual-currency sweeps outright. On top of that, the LA City Attorney has already dragged Stake.us, Evolution, and Hacksaw into court to test just how far sweeps can stretch the law.
- Louisiana took a different tack, suing VGW and WOW Vegas for $44 million in unpaid sales taxes, proving states don’t need a new ban to hit operators where it hurts.
Taken together, it’s a national effort to box sweepstakes in, with lawmakers, regulators, and even the taxman closing in from all sides. The “gray zone” that fueled sweeps’ explosive rise isn’t just shrinking, it’s disappearing.
What This Means for Sweeps Casinos
The immediate impact is simple: fewer games for players. Californians logging into Chumba or McLuck will find their Playtech favorites all gone.
For operators, the loss is deeper. Big-name suppliers bring credibility and retention power. Without them, platforms will lean more heavily on in-house studios or smaller developers, which leaves a visible gap in quality and variety.
It also sends a chilling signal: if Playtech, with global ambitions, thinks sweeps aren’t worth it, who’s next to bail?
Playtech’s Bigger Bet
If sweeps are “immaterial,” what is material? Well, Regulated iGaming.
The company’s latest earnings show where its chips are going:
- U.S. revenue doubled year-on-year in the first half of 2025, showing strong momentum despite its retreat from sweeps.
- Live casino revenue surged 300%, fueled by demand for interactive dealer games and new product launches.
- Playtech deepened its partnerships with DraftKings and FanDuel, two of the biggest names in American sports betting and casino play.
- It also expanded into West Virginia, making it Playtech’s fourth regulated U.S. iGaming market alongside New Jersey, Michigan, and Pennsylvania.
There’s a catch, though: CFO Chris McGinnis admitted profitability in the U.S. is still “years away.” Heavy investment in live casino infrastructure is driving growth, but eating into margins.
Still, the message is clear: Playtech isn’t chasing quick cash in the sweeps gray zone. It’s betting long-term on regulated markets. Here the rules may be tougher, but the rewards are steadier and far more scalable, and doesn’t come with hefty lawsuits
What’s Next
Don’t expect Playtech to re-enter sweeps anytime soon. Executives said they’ll “monitor developments,” but with bans and lawsuits piling up, the path forward is murky at best.
More likely? Other global suppliers will follow Playtech’s lead, quietly labeling sweeps as “immaterial” while chasing the much bigger pie of regulated iGaming.
That leaves sweeps operators scrambling to plug content gaps, and regulators emboldened by a market that’s starting to police itself.
Bottom line: Playtech just confirmed what the numbers already hinted at—sweepstakes casinos may have made a lot of noise, but for big global suppliers, they’re not worth the risk. In the battle between gray-zone sweeps and regulated iGaming, Playtech is placing its chips firmly on the regulated side.
Blaise Luis
