Playtech Says Sweepstakes Casino Business ‘Immaterial’ After California Exit

Playtech has indicated that sweepstakes casinos play a minimal role in its business, describing its involvement as “immaterial”, following its decision to withdraw from sweepstakes casinos in California.

The move came amid growing pressure in the state. Some suppliers and operators are exiting the market as a ban bill, AB 831, moves towards the finish line to prohibit dual-currency sweepstakes casinos.

What Playtech’s Leadership Said

In the company’s H1 2025 earnings call, Playtech’s CEO Mor Weizer and CFO Chris McGinnis addressed questions about sweepstakes casinos and the California exit.

They emphasised that the segment does not materially affect Playtech’s financials. They added that the company has always approached sweepstakes casinos with caution.

McGinnis said: “On quantifying, I mean, overall, we see it as immaterial. Just to give you a bit more color around that, you know, circa 1% of group revenues or, you know, single-digit millions kind of amount on a revenue basis.”

Weizer added, “I will say that we always took a conservative approach. This conservative approach meant that we only worked with a very selected few operators of size that we knew obtained certain legal advice alongside Playtech in only selected few states.”

Weizer went on to reemphasize Playtech’s cautious approach to sweepstakes casinos and noted that the company was among the first to exit California. He said Playtech is monitoring developments around the segment and approaches each state differently.

“We will follow the fluid changing and fluid regulatory environment in the US. We will continue … to further establish ourselves in the regulated states across the US with the largest and leading online gaming operators. This is our focus. It was the focus, it is the focus, and will remain the focus going forward,” said the CEO.

Weizer also highlighted that Playtech’s growth in the US was 100%, but sweepstakes casinos account for 1% of revenue.

California Exit Amid Sweeping Regulatory Pressure

Playtech’s withdrawal from the California sweepstakes market aligns with another gaming giant and arguably the most popular and widely available supplier, Pragmatic Play. The company subsequently decided to withdraw its operations from California and the entire US sweepstakes market.

The retreats come at a time when the segment is facing legal and legislative pressure. AB 831 was passed by the state Senate and is scheduled for a concurrent vote in the House. If the lower chamber approves it, it goes to Governor Newsom’s desk for signature.

At the same time, the Los Angeles City Attorney has filed a lawsuit against Stake.us and some of its suppliers, including Evolution, alleging illegal gambling activity.

Losing access to the state will be a massive blow for sweepstakes casinos. One report suggests that California accounts for approximately 17.3% of the US sweepstakes casino market.

However, Playtech characterized its revenue from the sector as negligible. Leadership stated that its decision to exit was driven primarily by risk mitigation rather than financial impact.

Playtech H1 Results: Solid US Growth Amid Group Revenue Dip

In H1 2025, Playtech reported lower group revenue from continuing operations. Still, it highlighted strong momentum in North America and reiterated guidance.

• Revenue: €387.0m, down 10% year over year (H1 2024: €429.7m).
• Adjusted EBITDA: €91.6m, down 16% YoY, reflecting the revised Caliente agreement and the transition toward a predominantly B2B model.
• B2B / B2C: B2B revenue €347.6m (–9% YoY); B2C revenue €41.0m (–17% YoY).
• Americas (US & Canada) B2B: €21.8m, +64% YoY; within that, the US grew over 100% YoY from a smaller base.
• Live Casino: +9% globally in H1. In the US, live casino revenue grew over 300% YoY.
• Cash & leverage: Total cash and cash equivalents €471.3m; net cash €77.1m at 30 June 2025.

Management stated that Playtech is on track to deliver FY 2025 Adjusted EBITDA ahead of expectations.