PLAYSTUDIOS is putting its chips on sweeps.
The NASDAQ-listed company behind popular social casino titles like myVEGAS Slots is preparing to take its new sweepstakes platform national before the end of 2025. Early results from open beta testing suggest the product is resonating with players.
CEO Andrew Pascal shared the update during PLAYSTUDIOS’ Q2 earnings call, noting the sweepstakes casino is already live in open beta across seven US states. So far, Pascal said, player retention, engagement, and monetization are all moving in the right direction.
A Strategic Pivot From Social to Sweeps
Sweepstakes casinos have quickly become a major force in the U.S. gaming market. These platforms offer a legal alternative to traditional online gambling in many states, letting users purchase virtual currency to win real cash prizes.
That model has raised eyebrows. A recent American Gaming Association survey found that 90% of respondents consider sweepstakes casinos a form of gambling, and two-thirds said they play primarily to win money.
For PLAYSTUDIOS, this shift in player behavior has created pressure on its core social casino products. Pascal acknowledged the challenge and said it validated the company’s reinvention plan launched in 2024.
“We’re taking a measured and rigorous approach to scaling,” Pascal said. The company wants to ensure the sweepstakes experience meets high player expectations, delivers strong performance, and aligns with its ad spend goals before launching nationwide.
The timing for a potentially high-profile sweepstakes casino product launch is interesting given the increasing regulatory pressure we’re seeing in state governments. New York and California are among the states cracking down on sweeps casinos.
In the Meantime, Mixed Financials
While the sweepstakes side of the business is gaining momentum, PLAYSTUDIOS reported weaker results elsewhere in Q2:
- Net revenue dropped 18.3% year-over-year to $59.3 million
- Advertising income declined 30.5% to $11.1 million
- Virtual currency revenue fell 14.6% to $48.2 million
- Net loss for the quarter totaled $2.9 million
On the positive side, the company’s direct-to-consumer segment grew 107% to $6.7 million in in-app purchases. It also plans to launch Tetris Block Party later this year and host the myVIP World Tournament of Slots from October 22 to 26, featuring a $1 million prize pool.
PLAYSTUDIOS is maintaining its full-year revenue guidance of $250 million to $270 million and adjusted EBITDA of $45 million to $55 million.
Why It Matters
PLAYSTUDIOS’ move into sweepstakes casino gaming reflects a growing trend in the social casino world. The line between free-to-play entertainment and real-money gambling is getting blurrier. Players want cash prizes, and operators are finding creative ways to deliver them while staying within legal boundaries.
With established sweepstakes brands like McLuck and WOW Vegas leading the space, PLAYSTUDIOS is banking on its rewards ecosystem and polished game design to make an impact.
Its biggest gamble yet could soon go live across the country.
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