A bill designed to regulate and tax skill-game machines in Pennsylvania brick-and-mortar establishments could soon impose a ban on sweepstakes casinos in the state. House Bill 2801, introduced by State Representative Russ Diamond, has a clause against dual-currency sweepstakes sites.
If passed and signed into law, HB 2801 would take effect immediately. Governor Josh Shapiro is likely to sign the bill into law because it sets a deadline for other forms of gambling established by the Pennsylvania Supreme Court.
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Pennsylvania Supreme Court ruling
On June 15, 2026, the Pennsylvania Supreme Court ruled in a 4-2 vote that Pennsylvania’s land-based skill-gaming machines are illegal. The court gave officials a 120-day safe-harbor window in order to pass a law to regulate and tax such machines.
Many Pennsylvania gas stations, convenience stores, and bars host such machines. They’re a revenue source that helps small business owners stay in operation. But the Pennsylvania Supreme Court says they are illegal under state gambling laws enacted in October 2018.
If such gaming is to continue, the Pennsylvania legislature is under pressure to pass a law soon. The deadline is October 13, 2026, after HB 2801 has been fast-tracked through the legislature.
Team Casino brought the original lawsuit
A coalition of Pennsylvania government agencies, dubbed “Team Casino,” brought the original lawsuit in POM of Pennsylvania, LLC v. Commonwealth of Pennsylvania, Department of Revenue, et al.
The list of agencies included the Pennsylvania Department of Revenue (DOR), the Pennsylvania State Police (Bureau of Liquor Control Enforcement), and the Pennsylvania Gaming Control Board.
Pennsylvania’s regulated land-based casino industry, along with the City of Philadelphia, also supported the court case. That included local casino industry giants like Parx Casino, Hollywood Casino (Penn National Gaming), and Mohegan Pennsylvania.
The pro-skill gaming coalition included POM of Pennsylvania, LLC, led by a state affiliate of Georgia-based software developer Pace-O-Matic.
Enforcement on skill-gaming starts on October 14
State police have been ordered to enforce the Supreme Court’s ruling beginning on October 14. If no new law is passed by that day, law enforcement is preparing to conduct immediate property raids.
If they do, the police will seize devices and other hardware, then freeze associated operating capital at those businesses. Lawmakers worry that inactivity could harm local businesses, so Rep. Russ Diamond introduced the draft legislation.
Diamond added the clauses about online sweepstakes casinos, which means a Pennsylvania ban could be ten days or less away.
Fines and penalties against sweepstakes casinos under HB 2801
HB 2801 would make operating a prohibited sweepstakes platform a first-degree misdemeanor or felony under Section 5513 of the Pennsylvania Crimes Code.
The financial penalties could reach $250,000 per violation. No criminal penalties appear to be attached to the bill, though details are still emerging.
Those found helping users circumvent the laws or hosting unauthorized digital portals would have all state-issued business or liquor licenses removed. Most sweepstakes operators would not fit under that category, but the $250K fines would be enough to drive operators out of the state.
When will a final vote on HB 2801 happen?
No word has emerged on when a final vote on House Bill 2801 might happen. The legislature is trying to pass a series of measures before it recesses for several weeks ahead of the 2026 midterm elections.
That gives several reasons the bill will be voted on soon. One can expect the bill to receive a vote sometime before Tuesday, October 13, 2026.
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Will HB 2801 pass in the Pennsylvania legislature?
The licensed brick-and-mortar casino industry brought the original lawsuit at its urging, and it has tremendous sway in the legislature. The idea was to eliminate competition from local establishments’ skill-based gaming machines.
That means HB 2801 is by no means certain to pass.
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