Pennsylvania sends cease-and-desist letters to 18 unlicensed sweepstakes casinos

Pennsylvania regulators are cracking down on unlicensed sweepstakes casinos popping up around the state. The Pennsylvania Gaming Control Board (PGCB) announced that it has sent cease-and-desist letters to 18 of these operators, many of which are based outside the US.

Even though these sites claim to be just “social casinos” offering sweepstakes prizes, state officials say they’re actually skirting gambling laws and hurting the legit, regulated casino industry.

Unlike licensed online casinos and sportsbooks, sweepstakes sites live in a legal gray zone. They use virtual currency instead of real cash, which helps them dodge being officially labeled as gambling under federal law. However, state regulators argue these platforms still pose risks to consumers and cut into the revenue that should be going to legal, regulated operators.

WHTM TV 27 covered yesterday's House Gaming Oversight Committee hearing, where PGCB Directors Steve Cook & Cyrus Pitre discussed sweepstakes & social casinos. Rep. Russ Diamond highlighted the need for consumer protection against unregulated, untaxed gaming. pic.twitter.com/Bqczd8OFpZ

— Pennsylvania Gaming Control Board (@PAGamingControl) April 8, 2025

Pennsylvania regulators struggling to keep up with sweepstakes sites

The PGCB doesn’t have the power to go after sweepstakes casinos the same way it does with illegal gambling operations. All it can do is send out warnings and so far, all 18 operators they’ve contacted have complied. That said, Chief Enforcement Counsel Cyrus Pitre says it feels like a game of “whack-a-mole,” with new sites popping up just as fast as they shut others down.

PGCB representatives joined today’s House Gaming Oversight Committee hearing to discuss online sweepstakes and social casinos. Testimony highlighted the need to protect PA consumers from unregulated, untaxed gaming. pic.twitter.com/OPcp2wlz3X

— Pennsylvania Gaming Control Board (@PAGamingControl) April 7, 2025

Chief Counsel Steve Cook also called out some loopholes in Pennsylvania’s gambling laws that make it easier for these sweepstakes casinos to slip through the cracks. He referenced a 2023 Commonwealth Court ruling that, according to him, made it even harder for the PGCB to enforce any real action against them.

Cited by Play Pennsylvania, Cook said: “Unfortunately, in the area of interactive gaming, we are significantly hamstrung by the specific language of our enabling statute.

“Specifically Chapter 13B of the Gaming Act includes sections that appear to ban online gaming by unlicensed operators. These prohibitions ultimately come into conflict, however, with the definitions found in the Act.

“What the Commonwealth Court held… was that this language wasn’t nonsensical, which I think it is.”

Pitre calls sweepstakes casinos ‘illegal online gambling’

Just like skill games, sweepstakes platforms are flying under the radar, unregulated and starting to spread rapidly across Pennsylvania. But according to Cook, there’s no question in his mind: these casinos are definitely gambling. He added: “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.”

Pitre backed up those concerns, straight-up calling sweepstakes casinos “illegal online gambling.” He warned that they pose a real threat to the integrity of Pennsylvania’s gaming industry and could undermine the trust built around the state’s regulated market.

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