The gambling industry can, frankly, be full of noise at times.
(OK … all the time.)
There’s an art to sifting through that noise and determining what is, and isn’t, worth putting stock into. What is political posturing? What are fake boilerplate statements? What can and will actually move the needle?
We’re all doing a bit of that sifting with sweepstakes industry noise right now. Of the states that have considered bills targeting sweeps operators this legislative session, only one has passed their bill in both chambers — Montana (up next is the governor’s signature). Bills in four states have failed or run out of time. Bills in five states are still alive. (And Texas could be a new wild card.)
The ultimate impact 2025 has on sweeps gaming — with intense scrutiny brought about by the flurry of legislation and the handful of state-issued cease-and-desist letters — may not be known for some time.
But here’s something we do know, unequivocally, right now: Money talks.
If you want to understand the true pulse of a situation, follow the money.
And, at this moment, the money leads us to Playstudios.
Hello, 15.5% increase
Playstudios, a social casino games developer, saw its stock price jump a whopping 15.5% this week to $1.55. Per the Earnings + More newsletter, other notable stock-risers this week were DraftKings, Lottomatica, Wynn Resorts, and Golden Entertainment — but none of them grew more than 7%.
So why, might you ask, are investors jumping on a free-to-play games vendor? And how does this tie back to sweepstakes casinos?
Answer to the second question: During Playstudios’ first quarter earnings call last Tuesday, executives announced their plans to enter the sweepstakes marketplace.
Answer to the first question: Clearly, investors still see optimum return opportunities in the sweeps industry, despite the pressure cooker that has been 2025 in the United States.
What Playstudios said about entering sweeps market
First-quarter revenue was $63 million for Playstudios, down 19% versus last year.
Playstudios CEO Andrew Pascal told investors he believes sweeps gaming’s growth is the “primary cause of the pressure on our player activity and monetization” this quarter.
“The social casino category is being impacted by the rising popularity of sweepstakes styles offerings,” he continued, “which are capturing increasing mind share and spend from players.”
So, Playstudios is adjusting with the times. Pascal said they have developed a sweepstakes promotional platform for their games, and they’re already running internal tests. He expects to begin opening the platform to select players in the second quarter.
“Our vision is to reclaim sweepstakes for what it was intended to be,” Pascal said. “A fun, engaging, and trusted promotional incentive that will drive more consumption across our social casino portfolio.”
Pascal said they’ll ease their sweeps product into the market.
“I think that what you’ll see is a very measured introduction, which will consist of several jurisdictions initially,” he told investors. “And then as we start to optimize the product and get ever more comfortable with the overall integrity of it and its appeal, then we’ll start to expand into other markets and invest more aggressively in the back half of this year.”
How the games may look
Sweepstakes gaming isn’t regulated so we don’t get revenue reports to analyze, but Eilers & Krejcik projects the industry will net around $7 billion in gross revenues in 2025.
It will be interesting to see how Playstudios games fit into the sweeps ecosystem. Currently, the company offers its social casino games in a series of standalone apps where customers can play the free games (and connect their account to a playAWARDS account for real-world perks — more on that later).
So will they still be standalone apps, but with sweeps options? Some of Playstudios’ more notable games include:
- myVEGAS Slots
- myVEGAS Blackjack
- POP! Slots
- KONAMI Slots
- Vegas Words
- MyVegas Bingo
“We have already done some limited amount of technical validation,” Pascal said, “and we’re just continuing to evolve the product and make sure that all of the internal control standards and operating practices are solid and in place as well as the product offering and the breadth of content we know we’re going to need so that we can go to market with something that’s compelling.”
Previous experience with sweeps promos … kind of
Back to the playAWARDS.
It’s a bit odd saying Playstudios will now be joining the sweeps sector, because they essentially already have offered a sweepstakes promotion for years. (So, perhaps it’s better to say Playstudios is joining the new sweeps sector.)
With playAWARDS, Playstudios’ player loyalty program, players can rack up Loyalty Points by playing the games and those LPs can be redeemed for real-world benefits, such as:
- Free hotel stays
- Cruises
- Buffets
- Show and concert tickets
Playstudios has a partnership with MGM Resorts, so some of the perks can be redeemed to MGM properties, and MGM imagery is featured in their games (such as the Bellagio and Luxor in myVEGAS Slots).
Pascal said the new sweepstakes platform they’re developing is “complementary” to their playAWARDS platform.
“In fact, our whole loyalty program and proposition as part of the sweepstakes promotional mechanic kind of amplifies it and its potential impact,” Pascal said. “So players of our sweeps offerings and promotions will not only be able to engage in the games and accumulate promotional currency that can ultimately be converted to cash. But as they engage with our products and accumulate those benefits, they’ll also continue to accumulate loyalty currency and all the real-world benefits.”
