Pennsylvania House Bill 2801 Seeks Sweepstakes Casino Ban as Legislative Session Nears Close
Rep. Russ Diamond introduced HB 2801 to ban sweepstakes casinos in Pennsylvania with fines from $50,000 to $500,000. The bill faces long odds with the session ending Nov. 30 and just five days left. It aims to protect the state’s $3.46B iGaming market from formats that mimic regulated slots.
SCCG Take — Partisan control and tax policy differences in the Gaming Oversight Committee reduce passage chances this year. Licensed operators should anticipate renewed regulatory focus on sweepstakes formats in 2027.
Republican Rep. Russ Diamond introduced House Bill 2801 last month to ban sweepstakes casinos in Pennsylvania, the country’s largest online casino market. The legislation would make it unlawful to operate, conduct or promote online sweepstakes games and impose fines of $50,000 to $500,000 per violation. It was referred to the House Gaming Oversight Committee and lists four co-sponsors: Rep. Jacob Banta (R), Rep. Jeanne McNeill (D), Rep. Dan Moul (R) and Rep. Brad Roae (R).
The bill creates a new section in the Gaming Act. It defines an online sweepstakes game as one that uses a dual-currency system allowing exchange for cash or prizes while simulating casino-style gaming. Enforcement would fall to the Pennsylvania Gaming Control Board and the attorney general, who could investigate, subpoena and issue cease-and-desist orders. Unlike bans in California and New York, this measure does not name specific third-party vendors.
Tight Timeline and Political Hurdles
The 2025-26 legislative session ends November 30 with only five scheduled session days remaining, and bills do not carry over. No hearing has been scheduled in the House Gaming Oversight Committee. Democrats hold a 103-100 majority in the House, and committee majority chairman Democratic Rep. Pat Harkins has taken differing positions on related gaming tax rates.
Pennsylvania generated $3.46 billion in online gambling revenue in 2025. August iGaming revenue reached $245.7 million, yielding $113.5 million in taxes. The bill would set a uniform 49.9% tax rate on online slots, table games and poker for licensed operators, down from 54% on slots, and raise the sports wagering tax from 34% to 36%. Thirteen states, including New Jersey and Connecticut, have already banned sweepstakes casinos.
Outlook for Regulated iGaming Protection
The measure ties into the Pennsylvania Supreme Court ruling that video terminal skill games are illegal under the Gaming Act, with the ban effective Wednesday. An estimated 70,000 devices operated prior to the decision. As reported by SBC Americas, failure to pass this session would likely see a similar proposal return in 2027.
The narrow window and partisan dynamics limit prospects for enactment now. Licensed operators and the Pennsylvania Gaming Control Board have clear incentives to track any future iterations, as the bill seeks to shield regulated revenue streams from unregulated sweepstakes competition while adjusting tax structures.
Reporting: SBC Americas
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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