Share 
Lawmakers in Pennsylvania and Wyoming are pursuing separate proposals to ban sweepstakes casinos, adding to scrutiny of the industry. Neither has become law.
Pennsylvania’s proposal, part of a sweeping gaming bill, would prohibit online sweepstakes games and fine operators up to $500,000 per violation.
In Wyoming, a legislative committee voted unanimously this month to sponsor a draft that would make operating such games a felony.
Pennsylvania bill carries steep fines
House Bill 2801, introduced by Rep. Russ Diamond, would make it unlawful to “operate, conduct, or promote online sweepstakes games.” The measure targets games that use two virtual currencies and let players exchange them for prizes or cash. It covers:
- Virtual slots
- Table games such as blackjack, roulette, craps, and online poker
- Lottery-style games including keno and bingo, and sports wagering
Violators could face fines of $50,000 to $500,000 per violation, license revocation and a ban on future licensing. The Pennsylvania Gaming Control Board could investigate, hold hearings and issue subpoenas and cease-and-desist orders. The state’s attorney general could also investigate, with or without the board.
The bill remains in the House Gaming Oversight Committee without a hearing. Pennsylvania’s legislative session ends Nov. 30, and bills do not carry over to 2027.
The proposal surfaces as lawmakers also face pressure over skill games. State police begin enforcing a state Supreme Court ruling that unlicensed skill game machines are illegal slot machines on Oct. 14.
Wyoming’s draft makes sweepstakes casinos a felony
Wyoming’s Select Committee on Gaming sent draft 27LSO-0098 to the Legislature’s Management Council, which will decide whether to sponsor it in the 2027 session. The council is expected to meet in mid- to late November or early December.
Wyoming already bars online casinos, though online sports wagering and fantasy sports are legal. The law is less clear on sweepstakes, and regulators have been unsure whether the Consumer Protection and Antitrust Unit or the Wyoming Gaming Commission should handle complaints.
Gaming Commission chief Nicholas Larramendy told lawmakers the draft would make clear that such games are illegal gambling, WyoFile reported.
The draft would add operating an online casino or sweepstakes game to Wyoming’s definition of professional gambling, a felony punishable by up to three years in prison. A covered game must be offered online, involve risking something of value (including free-play currency or sweepstakes entries), enable or simulate gambling, and fall outside existing exemptions.
The draft also reaches businesses that knowingly help run or promote such games, including:
- Providers of payment processing
- Server hosting
- Geolocation
- Gaming content
- Data services and advertising
It excludes people who play solely as customers.
Regulatory alternative fails to advance
A competing draft, 27LSO-0200, would have created a regulated market with a minimum age of 21, geolocation, one account per player, self-exclusion and spending controls. It failed to advance at the committee’s meeting, leaving the ban as the only proposal under consideration, Legal Sports Report reported.
Industry representatives pushed back on the ban. An attorney for sweepstakes operator VGW called the draft overly broad and said the company has operated in Wyoming since 2012. An attorney for Bally’s Corp., which owns a Cheyenne horse track, said online casinos and sweepstakes games can look nearly identical but are fundamentally different products.
Key deadlines loom in both states
Neither state has approved new restrictions. Pennsylvania’s bill faces the Nov. 30 end of the session, and Wyoming’s draft awaits the Management Council’s decision. Wyoming wagers, meanwhile, reached about $2.7 billion last year and are on pace to top $3 billion in 2026.
