Pennsylvania Lawmakers Consider Sweepstakes Casino Ban Under HB 2801

Pennsylvania businesses have days left to remove tens of thousands of skill-game machines, while lawmakers consider HB 2801 as a possible route for bringing the games into the regulated gambling market.

Good to Know

• Pennsylvania State Police set October 13 as the compliance deadline, with enforcement starting October 14.
• HB 2801 would prohibit online dual-currency sweepstakes casino games.
• The bill would broaden regulated video gaming under Pennsylvania Gaming Control Board oversight.

HB 2801 Offers A Different Route For Skill Games

Pennsylvania Supreme Court ruled on June 15 that skill games qualify as slot machines under current gaming law. As a result, businesses without the required Pennsylvania Gaming Control Board license cannot legally keep the machines after the compliance period ends.

State Police also made one point clear for bars, restaurants and other venues. Switching a machine off or unplugging it does not meet the requirement. Businesses need to arrange physical removal. From October 14, police can seize machines, related equipment and proceeds, while criminal charges may follow where appropriate.

HB 2801 could eventually give some operators another regulated route. Rep. Russ Diamond introduced the bill on September 24, and lawmakers sent it to the House Gaming Oversight Committee. The wider proposal would extend regulated video gaming beyond the current framework to qualifying establishments, including restaurant liquor licensees, clubs and truck stops.

At the same time, HB 2801 takes the opposite approach to sweepstakes casinos. The proposal would ban online sweepstakes games that combine casino-style play with a dual-currency system offering prizes, cash or cash equivalents. Violations could bring fines ranging from $50,000 to $500,000 per violation, along with licensing consequences.

Pennsylvania already allows regulated online casinos, retail casinos, sports betting, fantasy contests and video gaming terminals at qualified truck stops. HB 2801 therefore deals with two gaming models sitting outside much of that existing structure, potentially regulating one while prohibiting the other.

The bill has not passed either chamber. No votes or committee meetings were listed as of October 6, leaving businesses with skill games subject to the current October deadline unless Pennsylvania law changes first.

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