Pennsylvania has achieved 99.4% compliance with its skill-game removal order, but operators are introducing new devices in their place. State police have found machines bearing signs claiming legality because they do not accept cash and operate as sweepstakes rather than traditional slot machines. Non-cash payment methods do not exempt a device from gambling laws, the Pennsylvania State Police warned on November 10.
Since October 14, officers visited 12,202 establishments and confirmed skill games removed from 12,134 of them. Police seized 14 machines and $1,913. Investigators also identified devices using QR codes and mobile applications to offer simulated slot games, casino games, or sweepstakes gambling. Machines offering free credits may also be illegal if players can subsequently spend their own money to continue playing. PSP said no manufacturers or operators sought its input on device legality before deployment, and warned they face criminal charges for unlawful gambling if they continue.
Other states' ongoing battles
Sweepstakes machines are not new. North Carolina has spent nearly two decades litigating with sweepstakes terminal operators as manufacturers modify products to evade restrictions. The state banned video poker in 2007 and sweepstakes machines in 2010. North Carolina's Supreme Court upheld the sweepstakes ban against constitutional challenges in 2012 and again in 2022, finding that chance predominated despite skill-focused modifications. In September, the court heard arguments in a separate case brought by No Limit Games over video sweepstakes kiosks.
Illinois lawmakers have introduced bills to regulate or ban the devices over several years without success. In February, Rep. Bob Rita introduced HB 5030 to expand the definition of illegal gambling devices to include electronic machines offering sweepstakes entries or prizes tied to purchases, coupons, or credits. Rep. Lisa Davis introduced HB 5048 to establish a regulatory framework for prize-and-gift kiosks. Neither advanced beyond the House Rules Committee. Chicago's City Council rejected a proposed ban in June by a 33–15 vote, leaving an estimated 7,000 devices operating in the city.
Texas and Florida illustrate how operators use alternative prize structures to circumvent gambling laws. On November 4, Bexar County deputies raided seven suspected illegal gambling establishments in San Antonio, detaining 23 people and seizing more than 500 machines. Some businesses awarded Pokémon and sports trading cards instead of cash, with players able to sell the cards nearby for money. Florida regulators have noted that claims of operating lawful sweepstakes are a common argument used to circumvent gambling laws, and have called on lawmakers to address weak penalties and legal ambiguities.
