PLAYSTUDIOS Gears Up for Nationwide Sweepstakes Casino Launch
PLAYSTUDIOS Prepares for Major Sweepstakes Casino Debut
NASDAQ-listed company PLAYSTUDIOS, a developer and operator of free-to-play casual games, is set to launch its sweepstakes casino platform nationwide before the end of the year. Known for its innovative playAWARDS loyalty program that offers players real-world brand rewards, the company shared exciting progress during its second-quarter earnings announcement.
Open Beta Now Active in Seven U.S. States
The company’s CEO and chairman, Andrew Pascal, highlighted the rapid advancement of the sweepstakes casino initiative. After just nine months since launching this effort, PLAYSTUDIOS has gone live in open beta across seven U.S. states, showing positive early results.
Pascal, who co-founded the company in July 2011 alongside fellow entrepreneurs Paul Mathews, Katie Bolich, Nicholas Koenig, Chad Hansing, and Monty Kerr, noted encouraging trends in player retention, engagement, and monetization.
He also reflected on the growing presence of sweepstakes casinos, a sector facing criticism but changing player interaction and perceptions of online gaming. This expansion is creating competition for traditional social casino offerings, a shift that motivated the company’s reinvention strategy initiated last year.
A Deliberate and Thorough Growth Strategy
Sweepstakes casinos, marketed as free-to-play, allow users to purchase virtual currency for chances to win cash prizes. According to a recent survey by the American Gaming Association, 90% of participants view these activities as a form of gambling, with two-thirds playing primarily to win money.
These perceptions have led regulators in some states to question whether sweepstakes casinos comply with gambling laws, and some land-based operators view them as serious competitors.
Pascal emphasized that PLAYSTUDIOS is taking a cautious, thorough approach to scaling its sweepstakes product. The goal is to ensure a fully polished experience that meets high standards, player expectations, and advertising investment returns before expanding to all eligible states.
In addition to the sweepstakes launch, PLAYSTUDIOS plans to introduce the Tetris Block Party game in the fourth quarter, which is expected to boost both revenues and user engagement.
Positive Performance in Direct-to-Consumer Segment
During the second quarter, PLAYSTUDIOS’ direct-to-consumer business saw strong results, generating $6.7 million in in-app purchases, representing a 107% increase compared to the previous year.
Despite this growth, the company anticipates it may not meet full-year sales and EBITDA targets due to challenges in some areas that cost reductions haven’t fully offset.
Market analysts remain cautiously optimistic about PLAYSTUDIOS’ future prospects. Among the analysts covering the stock, a majority recommend buying or holding, with average price targets suggesting shares could rise approximately 56% from recent closing prices within the next year.