Pennsylvania’s House Bill 2801 Seeks Sweepstakes Casino Ban

Jonathan Rodriguez

Written by: Jonathan Rodriguez

Published: Tue Oct 13, 2026, 8:00 am ET

Read Time: 3 minutes

Pennsylvania's House Bill 2801 Seeks Sweepstakes Casino Ban

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Pennsylvania lawmakers have proposed legislation that would ban online sweepstakes casinos while establishing a regulatory framework for skill-game machines. 

House Bill 2801 (HB 2801), introduced by Rep. Russ Diamond, also proposes changes to casino taxes and the distribution of gambling revenue. The measure could reshape Pennsylvania gambling by addressing several gaming sectors under one legislative package.

The proposal comes as lawmakers face growing pressure to clarify the legal status of skill-game machines. However, HB 2801 remains under legislative review and has not become law.

HB 2801 Would Prohibit Online Sweepstakes Casinos

HB 2801 would explicitly prohibit sweepstakes games in Pennsylvania, targeting platforms that use dual-currency systems. These sites typically offer one virtual currency for entertainment and another that players can redeem for prizes.

The proposed ban covers casino-style games, including slots, blackjack, roulette, poker, and bingo. It would also target businesses that operate, promote, or support prohibited sweepstakes games.

The bill proposes fines ranging from $50,000 to $500,000 per violation. It could also lead to gaming-license revocations or disqualification from obtaining licenses. The Pennsylvania Gaming Control Board and state attorney general would receive enforcement powers under the proposed framework.

The measure could affect operators serving players in the state, including businesses offering products that resemble US online casinos.

However, the proposed restrictions focus on covered sweepstakes games rather than establishing a blanket prohibition on licensed online casino gambling.

Bill Proposes Rules for Skill-Game Machines

Beyond the sweepstakes ban, HB 2801 would establish rules for eligible skill-game and video-gaming terminal machines. The proposal would allow qualifying clubs, liquor-licensed bars and restaurants, and eligible truck stops to operate up to five machines.

Participating businesses would face a proposed tax of 20% on gross terminal revenue. The framework would also bring eligible machines under a more formal system of licensing and oversight.

These provisions could give lawmakers a way to regulate skill-game operations while defining where machines may operate. Nevertheless, businesses would need to meet the requirements established by any final legislation.

The proposal follows a long-running dispute over whether skill-game machines fall under Pennsylvania's existing gambling laws. Their legal status has become increasingly urgent as courts and enforcement authorities address unlicensed machines across the state.

Supreme Court Ruling Adds Urgency

On June 15, 2026, the Pennsylvania Supreme Court ruled that certain skill-game devices fall under the state's Gaming Act and gambling-device laws. The decision placed these machines within an existing legal framework governing gambling.

Pennsylvania State Police announced that enforcement against unlicensed machines outside permitted establishments would begin on October 14, 2026. The announced measures include potential seizure and criminal prosecution under the court ruling.

HB 2801 would offer a proposed legislative framework for eligible skill-game operations. However, lawmakers must advance the bill before its proposed rules can take effect.

Broader Gaming Tax Changes and Legislative Status

HB 2801 also proposes changes to casino taxation and gaming-revenue distribution. Among its provisions, the measure would set a 49.9% tax rate for online casino games and revise how revenue flows into state funds.

A companion proposal, HB 2802, would establish annual property-tax relief payments for eligible homeowners using gaming revenue.

The Pennsylvania General Assembly referred HB 2801 to the House Gaming Oversight Committee on September 24, 2026. As of October 13, the official bill record lists no votes or committee meetings.

Lawmakers could still amend the proposal as it moves through the legislative process. Until then, the proposed sweepstakes ban, skill-game rules, and tax changes remain subject to further review.

HB 2801 places online sweepstakes casinos and skill-game machines at the center of a broader debate over Pennsylvania's gambling laws. Its eventual impact will depend on the bill's final provisions and whether the legislature approves it.

Jonathan Rodriguez
Jonathan Rodriguez

Jonathan is an avid basketball fan, and is often looking forward to the next upcoming NBA season when not checking players' stats during games. He also likes to keep his ears on the ground for the latest rumblings in the online casino industry.

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