The Pennsylvania Gaming Control Board (PGCB) has taken steps to clamp down on sweepstakes casinos operating in the state without authorization, issuing 18 cease-and-desist letters to platforms it deems unlicensed and unregulated.
During a recent Gaming Oversight Committee hearing, the PGCB revealed that while these operators use models that often rely on virtual currency rather than direct monetary stakes, they still fall outside the scope of Pennsylvania’s current gaming legislation.
As such, the board lacks the authority to pursue legal proceedings in the same way it does against licensed real-money online casinos or sports betting platforms. Instead, cease-and-desist letters have become the primary enforcement tool.
“All 18 recipients have complied with the order so far,” according to a report from Play Pennsylvania.
PGCB Chief Enforcement Counsel Cyrus Pitre described the ongoing challenge as a “whack-a-mole” situation, with new sweepstakes platforms frequently emerging. Many of these companies are based overseas, though some operate domestically, including within Pennsylvania itself.
The limitations of current legislation have become increasingly apparent. PGCB Chief Counsel Steve Cook pointed to specific language within Chapter 13B of the Gaming Act as a roadblock to stronger enforcement.
“Unfortunately, in the area of interactive gaming, we are significantly hamstrung by the specific language of our enabling statute,” Cook said. He also referenced a 2023 Commonwealth Court ruling on skill games, stating that it effectively narrowed the PGCB’s authority to licensees only.
Pitre argued that these platforms do not adhere to the same standards as legal online casinos. “The law does not require them to prove fairness to the patron,” he said, noting the absence of responsible gaming features and age verification protocols.
“Despite their misleading presentation,” Pitre stated, sweepstakes casinos are, in the PGCB’s assessment, “a form of illegal online gambling.” He warned that their continued presence poses “a threat” to Pennsylvania’s regulated gaming market.
The online casino industry in Pennsylvania has seen rapid growth, generating approximately $2.2 billion in revenue in 2024, according to official data released in January 2025. This economic performance has made the legal framework around digital gaming an increasingly high-stakes issue.
The sweepstakes gaming industry, however, is not taking the regulatory pushback lightly. The Social and Promotional Games Association (SPGA), which represents many of the targeted operators, criticized Pennsylvania’s approach.
The organization argued that the state’s actions diverge from national legal standards and pointed to recent legislative outcomes in other states. Lawmakers in Arkansas and Maine, among others, have recently rejected proposals aimed at restricting sweepstakes casinos. According to SPGA, these decisions demonstrate that “properly structured promotional sweepstakes are both legal and safe.”
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