The Pennsylvania Gaming Control Board (PGCB) has taken action against a host of online gambling websites. In a Gaming Oversight Committee hearing on Monday, the PGCB stated it has sent 18 cease-and-desist letters to sites offering social and sweepstakes casino games.
Chief Enforcement Counsel, Cyrus Pitre stated, “The Gaming Control Board, through its Bureau of Investigations and Office of Enforcement Council, is committed to maintaining the integrity of Pennsylvania’s legal gaming industry. … Sweepstakes casinos, despite their misleading presentation, is, in our assessment, illegal online gambling.”
None of the companies issued the orders hold valid licenses to offer online betting in Pennsylvania which presents legal problems. The PGCB, strictly speaking, only has authority over the online gambling websites that it licenses.
Speaking on this, Chief Counsel Setve Cook, noted “the Gaming Board only has control and authority over people licensed by it, not outside entities doing something, which is arguably illegal.”
Unlicensed online gambling websites
Many states have taken action against sweepstakes casinos, claiming they are unlicensed online gambling websites.
Cook commented that this increases risks for players: “In stark contrast to regulated and online casinos, sweepstakes platforms are 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.”
A number of users have taken their own legal action by filing lawsuits against operators including VGW, Stake, and High 5 Games. Many cases have been settled with the companies paying out compensation.
The highest profile case saw High 5 Games pay $25 million in Washington. The same legal firm that brought that case have also filed a lawsuit in Illinois.
Betting in Pennsylvania
Pennsylvania legalized online gambling in 2017 and the first online gambling websites went live in 2019. There are 23 online casinos, 11 online sportsbooks, an online lottery, and fantasy sports are also legal.
The industry has grown year on year. In 2023, online gaming reached $2.1 billion in revenue, up 27% from 2022. This trend continued in 2024 with another $2.18 billion in revenue. The numbers in 2025 could be even bigger, with a record $223 million in revenue recorded in January.
These numbers do not include alternative forms of online gaming, such as sweepstakes, social, or crypto casinos. States have been fighting against the rise in these platforms as they do not contribute tax revenue and offer less player protection.
Finding the right legislation is challenging for regulators. Bills in Mississippi and Maryland against sweepstakes both failed this week, and many other states have struggled to get laws in place.
Chairman of the Gaming Oversight Committee, Russ Diamond, spoke on the challenge of keeping up with companies that find legal loopholes. But, he said Pennsylvania aims to introduce stronger rules in the future.
“We have to do it in a way that not just takes care of what’s going on today, 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 [from now]. That’s very difficult for us to do because it’s hard to imagine what people are going to come up with.”
No doubt the online gambling websites will find new ways to skirt laws and offer players their services.
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