Preparing for Nationwide Introduction of Sweepstakes Casino by PLAYSTUDIOS
PLAYSTUDIOS Pushes Forward with Nationwide Launch of Sweepstakes Casino
PLAYSTUDIOS, a NASDAQ-listed gaming company known for its social casino games and playAWARDS loyalty platform, is making a strategic shift towards sweepstakes casinos. This move aims to capitalize on the growing and legally viable sweepstakes market, as traditional social casinos face pressure from this new wave of gaming platforms.
The company, founded by Andrew Pascal and fellow gaming and tech entrepreneurs in 2011, is currently in open beta testing of its sweepstakes casino product in seven U.S. states. Early results indicate strong player engagement, retention, and monetization. PLAYSTUDIOS is planning to launch the product nationwide before the end of 2025 [1][4][5].
The shift towards sweepstakes casinos is a response to changing player expectations and behaviors. According to Pascal, many players view sweepstakes casinos as a form of gambling aimed at winning real prizes [1][4]. In a recent American Gaming Association survey, 90% of participants considered sweepstakes casinos to be a form of gambling [4].
Despite regulatory challenges and some state-level bans or restrictions like those in Connecticut, Montana, New York, and California, the sweepstakes casino industry has grown rapidly, engaging an estimated 55 million users annually [2][3][4]. PLAYSTUDIOS plans to differentiate itself within this crowded market by leveraging its proprietary game content.
The company's CEO, Pascal, emphasized a measured and rigorous approach to expansion. PLAYSTUDIOS is expected to launch its Tetris Block Party game in the fourth quarter and its sweepstakes casino product before the end of the year [3].
Wall Street expects the shares of PLAYSTUDIOS to hit $2.50 within the next year, a target that's roughly 56% higher than the August 1 closing price of $1.09 [1]. However, the company is expected to fall short of its full-year sales and EBITDA forecasts [1]. Three analysts covering the stock rate it as a "strong buy" or "buy," one suggests holding, and one has it as a "sell" or "strong sell" [3].
As PLAYSTUDIOS moves forward with its nationwide launch, it reflects a broader industry trend where sweepstakes casinos are gaining significant traction, despite regulatory challenges, and are influencing the dynamics of online gaming platforms [1][3][4].
[1] Wall Street Journal [2] CNBC [3] MarketWatch [4] Forbes [5] TechCrunch
- PLAYSTUDIOS, a gaming company with roots in technology and finance, is planning to launch its sweepstakes casino product nationwide, aiming to rival the popular forms of gambling like blackjack and slots in traditional casinos.
- The blackjack and slots enthusiasts might find real prizes enticing in PLAYSTUDIOS's digital sweepstakes casinos, as the company capitalizes on the growing sweepstakes market and player shift in gaming behavior.
- As PLAYSTUDIOS expands its business with proprietary game content, it showcases how technology and business strategies can innovate and reshape the casino industry landscape.
