Pennsylvania police warn sweepstakes-style machines are not exempt from gambling law

The Pennsylvania State Police (PSP) said on 10 November that some manufacturers and operators are placing cashless, sweepstakes-style devices in unauthorized establishments and claiming they are legal. The force warned that distributors and host businesses could face criminal charges if the machines stay in operation.

The warning follows our earlier report on the 99.4% compliance rate in skill game removal.

What happened

In its 10 November update, PSP said that since 14 October 2026 it has visited 12,202 establishments. Of those, 12,134 no longer have skill games, the force said, and it has seized 14 machines and $1,913. Investigations continue at locations that have not removed the devices voluntarily.

PSP also said its personnel have encountered devices displaying signs from manufacturers or operators. The signs claim the devices are lawful since they do not accept cash and operate more like a sweepstakes than a slot machine. PSP said no manufacturer or operator asked for its view on the legality of the devices before installing them.

The force set out its position on several points:

• A device that takes any form of compensation from a player and offers slot-style play with a chance of cash, credit or reimbursement is a slot machine or gambling device, PSP said.
• PSP said this applies regardless of whether the player pays by card, mobile payment or cash app.
• Games offering free credits or free play are illegal where the player can go on to continue with their own money, according to PSP.
• Under 18 Pa. C.S. § 5513, PSP said it is unlawful for businesses to allow electronic video monitors that let players scan QR codes or download apps to play simulated slots, casino games or so-called sweepstakes games.

PSP said the Pennsylvania Supreme Court's decision, although it concerned skill games, reaches devices whose results depend on chance, skill or both, regardless of whether a random number generator is used or the outcomes are drawn from a finite pool. It added that such devices can only be permitted where the General Assembly has expressly authorised gambling, which it described as premises licensed by the Pennsylvania Gaming Control Board (PGCB).

According to PSP, enforcement can include seizing and forfeiting devices, related equipment and proceeds, along with criminal charges. It said it will bring charges against any manufacturer or distributor that keeps the devices running.

The outlet Gambling Insider also noted that PSP has not said how many sweepstakes-style devices it has found.

Why it matters

Suppliers, distributors and venue hosts in Pennsylvania should check any cashless, sweepstakes-branded or QR-code and app-based product against PSP's stated position before it stays in place, because PSP says the payment method does not change the legal test. Anyone marketing or placing such products in the state should note that PSP has said it will pursue charges against manufacturers and distributors.

For licensed operators, the statement suggests that the legal line in Pennsylvania runs through PGCB licensing rather than product design. Operators and affiliates working in the regulated market will want to keep their partners and any adjacent suppliers clear of devices that PSP describes as unlawful, to limit reputational and compliance risk.

The approach could also be a marker for other states. The outcome is likely to depend on how prosecutors and courts treat any devices that stay in place.

What's next

PSP said its investigations into locations that have not voluntarily removed devices are active and ongoing. It has invited the public to report tips on the operation of such devices through its published tip line. Gambling Insider reported it had asked PSP for more information and had received no response by publication.