Pennsylvania regulators are stepping up their efforts against unlicensed online gambling, particularly sweepstakes casinos. At a recent Gaming Oversight Committee hearing, the Pennsylvania Gaming Control Board (PGCB) said it had issued 18 cease-and-desist letters to companies operating in the state without a proper license. All the companies, some offshore and others based in the U.S., stopped their activity in response.
Even with those quick responses, enforcement remains difficult. PGCB chief enforcement counsel Cyrus Pitre said sweepstakes casinos often disguise themselves as legal entertainment platforms, but the board considers them illegal. “Sweepstakes casinos, despite their misleading presentation, are, in our assessment, illegal online gambling,” Pitre told lawmakers.
While PGCB has managed to disrupt some operators, it doesn’t have the legal power to bring further action. That makes enforcement feel like a game of catch-up. “The sheer volume of these sites creates a whack-a-mole scenario,” Pitre explained. “For every site we manage to shut down, dozens of others emerge or become operational each day.”
Pennsylvania is among seven U.S. states with legal online casino and sports betting. Legal iGaming sites in the state are licensed and required to follow rules that protect consumers. Sweepstakes platforms, by contrast, operate in a legal gray area. They often allow users to play games using free coins, with the option to buy more. Winnings from these games, including slots, table games, and sports picks, can sometimes be exchanged for real-world rewards.
PGCB chief counsel Steve Cook pointed out that these operators aren’t held to the same standards as licensed casinos. “They’re not obligated to be tested for fairness to the patron, nor are the sites obligated to provide responsible gaming services, age verification, or other consumer protections,” Cook said.
Cook also said legal tweaks are needed to give the PGCB stronger tools. He pointed to language in Chapter 13B of the state’s Gaming Act that bans online gambling by unlicensed operators, but whose definitions create confusion and conflict. That ambiguity has allowed some sites to continue operating without direct consequences.
“We are significantly hamstrung by the specific language of our enabling statute,” Cook explained.
Committee chairman Russ Diamond responded positively to the call for legislative action but added that future-proofing the law won’t be easy. “We have to do it in a way that not just takes care of what’s going on today,” Diamond said, “but we have to try and anticipate what’s going to go on in a year, or two years, or five years, or 10 years. That’s very difficult for us to do because it’s hard to imagine what people are going to come up with.”
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