Pennsylvania Bill Would Outlaw Sweepstakes Casinos, Impose Fines Up to $500,000

Lawmaker Introduces Bill Targeting Dual-Currency Sweepstakes Model

Pennsylvania State Rep. Russ Diamond introduced House Bill 2801 on September 24, 2026, a measure that would make it unlawful to operate, conduct, promote, or assist online sweepstakes casinos in the state, according to Gambling Insider. The bill directly targets the dual-currency Gold Coin and Sweeps Coin model used by many sweepstakes platforms to operate outside traditional gambling regulation, per Gambling Insider's monthly tracker.

According to Gambling Insider, the bill proposes fines ranging from $50,000 to $500,000 per violation, along with the potential revocation of gaming licenses for violators. ON360 confirmed these penalty details along with the bill's sponsor and its current status before lawmakers.

The legislation would also grant the Pennsylvania Gaming Control Board and the state Attorney General new cease-and-desist and investigative authority, according to Gambling Insider. HB 2801 remains before the House Gaming Oversight Committee ahead of a November 30 legislative session deadline, per Gambling Insider's reporting. Whether the bill advances out of committee before that deadline remains uncertain, and its fate could reportedly hinge on broader negotiations tied to the larger gaming package it was introduced alongside.

Background: Cease-and-Desist Letters Without Statutory Backing

This legislative push follows Pennsylvania's earlier attempt to address sweepstakes operators administratively. In April 2025, the Pennsylvania Gaming Control Board sent 18 cease-and-desist letters to sweepstakes operators, according to iGaming Future. However, the Board's actions at the time lacked formal statutory backing, as the agency stated it did not have clear statutory authority to pursue legal proceedings against sweepstakes operators, according to Yogonet. HB 2801 appears designed to close that gap by giving regulators explicit legal tools.

Part of a Broader National Trend

Pennsylvania would join a growing list of states that have moved against the dual-currency sweepstakes model in 2025 and 2026, following statutory bans or enforcement actions in states including New York, Connecticut, Montana, Indiana, Maine, Tennessee, Louisiana, and Oklahoma, according to ON360. Industry observers cited by ON360 have noted that several smaller operators have already begun adjusting their state-by-state availability lists in anticipation of further restrictions, even in states where no ban has yet taken effect.

What This Means for Players

Is sweepstakes casino access in Pennsylvania currently legal?

Access has long been described as contested rather than settled, with the Pennsylvania Gaming Control Board previously acknowledging it lacked clear statutory authority to shut operators down, according to Yogonet. HB 2801 is an attempt to establish that authority explicitly, per Gambling Insider.

Could Pennsylvania players lose access suddenly if the bill passes?

If HB 2801 or similar language advances, players could reportedly face a cutoff with limited notice, similar to shutdowns already seen in other states this year, based on patterns described by ON360. Players should not assume continued access based on past availability.

What should players do while the bill's status is uncertain?

Players with questions about their ability to use a given platform should check that operator's current terms and state-availability information directly rather than relying on past access, since the bill's path through committee remains unresolved ahead of the November 30 deadline reported by Gambling Insider.

Where can players get help if sweepstakes play becomes a concern?

Sweepstakes casino platforms are intended for entertainment purposes and are available to eligible players 18+ (21+ in some jurisdictions). Anyone concerned about their gambling habits can contact the National Problem Gambling Helpline at 1-800-GAMBLER or the 1-800-MY-RESET helpline for free, confidential support.