Pennsylvania sweepstakes casinos don’t follow the same playbook as traditional online gambling sites – and that’s exactly why they’re available across the state. While licensed casinos are tightly regulated, these platforms use a promotional model that plays by different rules. On this page, you’ll find which sweepstakes sites are actually open to PA players, how they work, and what’s changing in 2025 that might shape where (and how) you play next.
Nemanja M.
Content Writer
Last updated
27 May 2025
The state itself doesn’t license U.S. sweepstakes casinos, but that doesn’t automatically mean they’re banned. Instead, they’re very much allowed to operate as long as they follow two key rules written into state law.
As you will see, both of the rules don’t target you as a player – they’re focused on operators. So you won’t get in trouble for playing, but you should still stick to sites that follow the rules.
18 Pa. C.S. § 5512 – Makes it illegal to run an unlicensed lottery or chance-based game unless it’s authorized by the state.
18 Pa. C.S. § 5513(a.1) – Targets any game that looks and plays like a casino slot but doesn’t offer a real, no-cost way to enter (e.g. sweepstakes cafés and similar setups).
We break it all down – how the model works, what laws apply, and why free entry makes all the difference.
You don’t need much to get started, but there are two main things you need to be aware of:
💡 Side note: You can’t be buying your way into prizes. Paying for coins is fine. But the ones that can be cashed out? Those have to be handed out for free.
So you cashed out from a sweeps site – good for you! But it’s also pretty good for the state of Pennsylvania. If your prize has real-world value, the state expects you to treat it like income. Because nothing says “fun” like taxes.
If your winnings can be redeemed or used like cash, the state wants to know about it. That includes:
Tip: The moment your prize becomes “available” to you – not just when you withdraw it – it counts as income. So don’t wait for a payout to file.
If you win cash, redeemable coins, or gift cards from a sweepstakes casino and live in Pennsylvania, you’ll pay 3.07% on those winnings – the state’s flat personal income tax rate.
Tip: Keep track of your wins and any entry costs throughout the year. Even small cash-outs can add up, and having proof makes tax time way easier. A simple spreadsheet or screenshot folder works just fine.
Unlike the IRS, Pennsylvania doesn’t have a minimum threshold for reporting sweepstakes or gambling winnings.
That means:
Tip: Don’t assume small wins slide under the radar – they don’t. The Department of Revenue expects a full year’s total, no matter how many micro-payouts it took to get there. Keep records as you go so you’re not scrambling in April.
Not everything gets taxed. You can ignore prizes you didn’t actively try to win, like:
Watch out: If a platform requires you to like, comment, or share to enter – that counts as effort and could tip it into taxable territory.
If you live in PA, it doesn’t matter where you played – in-state, out-of-state, online – the moment you win something of value, it becomes taxable in Pennsylvania.
Reminder: That includes sweepstakes wins from international platforms too – if you’re a PA resident, they count.
If you don’t live in Pennsylvania, you still report sweepstakes or gambling wins if:
Tip: If you traveled to PA and entered while here (even online), your winnings may count as Pennsylvania-source income.
When tax season rolls around, use PA Schedule T to report your sweepstakes and gambling income (Here’s an example of what the form looked like in 2024).
In 2024 and early 2025, the Pennsylvania Gaming Control Board (PGCB) issued cease-and-desist letters to multiple unlicensed operators running online casino-style games in the state – especially those using sweepstakes-style mechanics without offering legitimate free-play options.
As a result, some sites have:
If you hit a wall during signup, that’s probably why.
📎 Source: Yogonet International
See how PA’s sweepstakes laws stack up against neighboring states.
Yes, you can legally play as long as the site follows Pennsylvania’s rules – like offering a free way to enter and not requiring you to pay for a chance to win real prizes.
No, you’re not at risk. The law targets unlicensed operators, not players. Just make sure you stick to sites that follow the state’s sweepstakes guidelines.
Yes, you can redeem cash prizes or gift cards as long as they came from free-entry options like daily bonuses or mail-ins – not from direct purchases.
You need to be at least 18 years old. That’s younger than the 21+ rule for regular online casinos in the state.
If you live in PA, your sweepstakes winnings – including cash, redeemable coins, or gift cards – are taxed at 3.07%. There’s no minimum threshold, so even small wins count and must be reported on your state taxes.
