Summary:
- Pennsylvania’s HB2801 would prohibit operating, promoting, or assisting online sweepstakes casinos.
- Proposed fines would reach up to $500,000 for violations.
- The bill would extend the enforcement authority of the Pennsylvania Gaming Control Board and Attorney General.
Lawmakers in Pennsylvania want to put a ban on online sweepstakes casinos, while imposing penalties of up to $500,000 for unlawful operations and expanding the state’s authority to pursue operators.
The bold proposals are part of the new legislation that has been scheduled for consideration ahead of the 2027 legislative session, which is scheduled to begin on January 5.
House Bill 2801 was pre-filed in late September by Representatives Russ Diamond, Jacob Banta, Bradley Roae, Dan Moul and Jeanne McNeill. It has been referred to the House Gaming Oversight Committee, where Diamond serves as co-chair.
The bill proposes broad changes to Pennsylvania’s gaming laws, covering areas including licensing, taxation, casino regulation, online gaming and enforcement. Its provisions also specifically target online sweepstakes games that use a dual-currency system and simulate casino-style gambling.
Possible Ban and Penalties
HB2801 would prohibit operators from operating, conducting, or promoting online sweepstakes games in the state. The legislation would also prevent individuals and businesses from assisting with their administration, operation, or promotion.
Violations could carry fines of up to $500,000. The proposal would authorize both the Pennsylvania Gaming Control Board (PGCB) and the state Attorney General to investigate suspected violations, conduct hearings, and issue cease-and-desist orders against operators.
The bill defines online sweepstakes games
as internet- or mobile-accessible games that use a dual-currency payment system allowing players to exchange currency for prizes, cash equivalents or chances to win them, while simulating casino-style gambling.
The definition includes slots, blackjack, roulette, poker, bingo and other listed game formats.
Games that do not award cash prizes or cash equivalents would not be included in the definition. This provision would enable social casino games that use non-redeemable virtual currency to keep operating.
Enforcement Concerns Behind the Proposal
The legislation, as expected, follows more scrutiny regarding the existence of sweepstakes casinos by Pennsylvania regulators.
During an April 2025 House Gaming Oversight Committee hearing, PGCB Chief Counsel Steve Cook explained that the dual-currency model could disguise what he considered online gambling.
Cook also said existing state law limited the board’s ability to take legal action against these platforms.
Chief Enforcement Counsel Cyrus Pitre told lawmakers that the board had issued 18 cease-and-desist orders to sweepstakes casino operators at that point, with companies complying, but described enforcement as an ongoing challenge because new sites continued to emerge.
HB2801 would establish more explicit statutory prohibitions and expand enforcement options if enacted.
Virginia Also Has Its Eyes on 2027
Pennsylvania is not the only state where lawmakers could revisit sweepstakes gaming next year. In Virginia, Senate Bill 579 was amended in 2026 to require a study of online sweepstakes games rather than impose an outright ban.
The study is intended to examine the industry’s legal and economic effects, its differences from real-money gambling, and how sweepstakes games should be defined.
The Senate Courts of Justice Committee voted 14-1 in February to carry the amended measure over to the 2027 session.
Pennsylvania’s HB2801 is still just a proposal and not an enacted ban, and its provisions must still pass through the legislative process before they can turn into law, leaving the future of online sweepstakes casinos in the state unresolved.
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