Lawmakers in Pennsylvania have introduced legislation that would outlaw online sweepstakes casinos and give state authorities additional powers to take action against operators that violate the proposed ban.
- HB 2801 would ban online sweepstakes casinos in Pennsylvania.
- Under the proposed ban, operators and those assisting in running prohibited games could face fines of up to $500,000.
- The Pennsylvania Gaming Control Board and Attorney General would gain additional powers to investigate violations.
House Bill (HB) 2801 was pre-filed by Reps. Russ Diamond, Jacob Banta, Bradley Roae, Dan Moul, and Jeanne McNeill at the end of September, and it was then referred to the House Gaming Oversight Committee ahead of Pennsylvania’s 2027 legislative session, which commences on Jan. 5.
The bill would prohibit online sweepstakes casinos that offer casino-style games and use a dual-currency payment system that allows users to exchange currency for prizes, awards, cash, or cash equivalent.
It identifies slots, table games like blackjack, roulette, craps, and poker, lottery-style games, bingo, instant win titles, and sports wagering among the activities that could fall within its definition of sweepstakes gaming.
However, the proposed legislation would not cover social casino games that offer no cash prizes or equivalent rewards.
$500K fines
HB 2801 would also enable the Attorney General and the Pennsylvania Gaming Control Board (PGCB) to investigate suspected violations, conduct hearings, and issue cease-and-desist orders to offending sweepstakes platforms.
Those found to have breached the proposed restrictions could face fines of up to $500,000.
HB 2801 also contains wider amendments to Pennsylvania’s gambling laws, including changes relating to licensing, taxation, revenue distributions, regulatory oversight, and responsible gaming.
The proposed restrictions follow concerns raised by the PGCB about its ability to take enforcement action against sweepstakes gaming operators under existing state gambling laws.
At a House Gaming Oversight Committee hearing held in April 2025, the gambling authority’s Chief Counsel, Steve Cook said the PGCB’s authority was limited when dealing with companies that did not fall under its oversight.
During the same hearing, the PGCB’s Chief Enforcement Counsel, Cyrus Pitre, disclosed that the regulator had issued 18 cease-and-desist notices to sweepstakes casino platforms. He explained that while all recipients had complied, new platforms continued to enter the market.
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Attorney General seeks Supreme Court review of prediction markets
The proposed ban of sweepstakes casinos in Pennsylvania comes as the state’s Attorney General, Dave Sunday has joined a coalition of 39 U.S. states seeking a Supreme Court review of a legal dispute involving prediction markets.
The challenge concerns whether sports event contracts offered by prediction market platforms like Kalshi fall under federal regulation or state gambling laws.
Sunday and other U.S state officials argue that states should be able to enforce their own gambling laws against these products.
Sunday said, “It is our position that sports-related prediction markets should be viewed under the law as sports betting.”
