We’ve gone through how every major sweeps platform runs in Pennsylvania — what still works, what changed, and what could trip you up at payout.
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Last updated
28 August 2025
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Big-name sweeps sites you can’t use in Pennsylvania
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:
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. Pennsylvania sweepstakes casinos are legal as long as they comply with state law – namely, if they offer a free entry and do not obligate you to pay for a chance to win real prizes with money you put in.
No. There is no legal risk associated with playing sweepstakes casinos in Pennsylvania. State law 18 Pa. C.S. § 5512 and § 5513(a.1) only applies to unlicensed operators, not players. To eliminate any unnecessary risk, you should always play at sweepstakes casinos with a method of free entry and that are in line with Pennsylvania state law.
Yes. You can redeem your sweepstakes casino winnings in Pennsylvania, including cash and gift cards, as long as they are products of a free-entry method, like daily login bonuses or mail-in entries, but not direct purchase.
You must be 18 or older to play at Pennsylvania sweepstakes casino sites. This is younger than the 21+ requirement in the state for online casinos.
If you win a sweepstakes casino prize in Pennsylvania (cash, redeemable coins, or gift cards), the items are taxed at the rate of 3.07% state tax. You will not need to meet a minimum dollar threshold, as even $1 must be reported on your Pennsylvania state taxes.
