Published on: November 4, 2025, 10:03 AM.
Updated on: November 4, 2025, 10:10 AM.
- Playstudios stays optimistic about the sweepstakes casinos
- This positive outlook comes amidst regulatory challenges concerning the contentious online gaming sector
The sweepstakes casino industry is facing tough times, particularly following California’s prohibition of these online games and Google’s reClassification of sweepstakes as regular social casino games. Yet, despite these regulatory challenges, Playstudios is confident about its innovative products.
Andrew Pascal, a seasoned figure in the gaming industry and nephew of Steve Wynn, disclosed during his firm’s third-quarter earnings call that he holds an optimistic view regarding the controversial sweepstakes market. Playstudios, which he co-founded in 2011 with support from MGM Resorts and Activision Blizzard, unveiled its sweepstakes casino, The Win Zone, in Q3.
Although the timing was less than perfect, with more states passing laws banning online casino games utilizing dual currencies, Pascal remains undeterred.
“While the overarching sweepstakes market has encountered regulatory shrinkage, which has reduced the Total Addressable Market (TAM) by about 25%, growth in the available states continues to be strong, with a TAM of $3.5 billion to $4 billion,” Pascal stated. “We continue to regard this category as presenting a significant long-term opportunity.”
Pascal further noted that Playstudios has experienced “consistent improvements” in retention, engagement, and monetization for Win Zone, leading to the company’s “highest returns on ad spending.”
Positioned as a social gaming entity, Playstudios reported Q3 revenues of $57.6 million, a decrease from $71.2 million year-over-year. The company recorded a net loss of $9.1 million, compared to a net loss of $3.1 million in Q3 2024.
The firm’s social gaming portfolio features myVEGAS Slots, MGM Slots Live, myVEGAS Bingo, Pop! Slots, myVEGAS Blackjack, and Tetris.
Sweepstakes Regulation Insights
Detractors of sweepstakes casinos argue that these online platforms permit players to wager real money. Conversely, sweepstakes operators assert that their digital currency, often referred to as sweeps coins, cannot be cashed but can be exchanged for cash prizes.
Multiple state attorneys general and gaming regulators have issued cease-and-desist orders against sweepstakes casino operators. Playstudios’ Win Zone is presently accessible solely in states including Alaska, Arkansas, Colorado, Florida, Indiana, Iowa, Kansas, Minnesota, Missouri, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, and Wisconsin.
Pascal acknowledged the recent unfavorable trends against sweepstakes but expressed hope for sustained market access in specific regions.
“We are hopeful that some form of sweepstakes will endure. While more jurisdictions are likely to withdraw, some may transition to a more regulated model. I anticipate that oversight, regulation, and taxation of the sweepstakes sector will emerge,” Pascal emphasized.
“To me, this presents a very tangible opportunity,” Pascal concluded.
Tetris Expansion
Playstudios is not solely reliant on sweepstakes. Pascal is diversifying with the company’s licensing deal for the iconic Tetris franchise, established in November 2021. Tetris ranks among Playstudios’ most beloved social gaming applications.
“We offer a sweepstakes alternative, ensuring our users remain within our ecosystem rather than losing them altogether,” Pascal articulated. “This strategy should serve as a stabilizing factor.”
Playstudios is in the initial phases of introducing Tetris Block Puzzle, a novel Tetris iteration that allows gameplay from all four directions of the playing field, rather than just from the top.