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Pennsylvania Gaming Regulators Claim They Can't Force Sweepstakes Operators Out

Agency Admits It Is Up To Law Enforcement To Uphold Cease And Desist Letters

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Despite threatening several sweepstakes and social casinos with legal action, the Pennsylvania Gaming Control Board recently admitted that the agency cannot do much against these operators.

The admission came in a meeting with the Pennsylvania Assembly Gaming Oversight Committee after several states considered legislation to ban sweepstakes casinos.

Under state law, the board has few options for forcibly removing operators from the state.

“Unfortunately, the Pennsylvania Racehorse Development and Gaming Act (has) specific language hinders the Pennsylvania Gaming Control Board from taking legal action against these sites,” PGCB chief counsel Steve Cook said. “It is important to recognize the board is not a law enforcement agency, and as a result, we are powerless to bring a criminal case challenging anyone operating one of these illegal gambling operations. The board can, however, pursue administrative and civil remedies when appropriate.”

The issue has also arisen with so-called “skill games.” These slot-like games can be found at convenience stores and other locations in the Keystone State. Courts have allowed the games to stay in place based on similar interpretations that they aren’t excluded under gaming law.

The state supreme court is now considering the skill game issue.

The PGCB remains adamant that sweepstakes sites are illegal and will continue issuing cease-and-desist letters to the operators. That has been successful so far.

“Sweepstakes casinos, despite their misleading presentation, are in our assessment illegal online gambling,” PGCB enforcement counsel Cyrus Pitre said. “To combat this, rather than solely referring individual cases to law enforcement, we’ve adopted a proactive approach. The bureau investigates these sites they found illegal. The Office of Enforcement Council issues a cease and desist letter.

“The board has issued 18 letters with those operators ceasing their operations in the state. However, Pitre said that there are just too many sites to keep up with and there’s “a whack-a-mole scenario” with the board not able to keep up with the number of sites available to players.

Pitre also noted that the sweepstakes casinos have no obligation to comply with the state’s demands. He said lawmakers should either regulate the industry or change state law to ban them officially. Several other states, including New York, Maryland, and California, have filed lawsuits or sought legislation banning sweepstakes casinos.