Representatives from the Pennsylvania Gaming Control Board (PGCB) spoke to the Pennsylvania Assembly Gaming Oversight Committee and admitted that, while they have successfully sent 18 cease and desist letters to sweepstakes operators in the state, there is actually very little the regulator can do in terms of threatening them.
“Unfortunately, the Pennsylvania Racehorse Development and Gaming Act, specific language hinders the Pennsylvania Gaming Control Board from taking legal action against these sites,” PGCB Chief Counsel Steve Cook explained.
“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.”
PA law language makes enforcement nearly impossible
Cook went on to explain that the specific language of the laws around both internet gaming and slot machines makes it nearly impossible for the board to take meaningful action against operators they believe are in violation of the law.
Both of these acts include sections explicitly banning illegal gaming in their given verticals, the definition of both “interactive gaming” and “slot machines” are written to be limited to regulated operators.
“Therefore, when the definitions are used in conjunction with the prohibitions, the result is nonsensical prohibiting conduct, which, as per the definitions, is already authorized,” he explained.
When it comes to the PGCB’s battle against what it perceives to be illegal games of skill in the state, the courts have previously sided with these skill games operators and the issue is currently with the state Supreme Court at the request of the Attorney General, who is seeking clarity on the issue.
PGCB has sent C&Ds, contacted Google and Apple
For the sweepstakes battle, it has narrowed the options for the PGCB to take action. Chief Enforcement Counsel for PGCB Cyrus Pitre noted that the group is still doing what it can when it comes to sweepstakes sites.
“Sweepstakes casinos, despite their misleading presentation, are in our assessment illegal online gambling. 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,” he noted.
“To date, we’ve issued approximately 18 such letters, all of which have been promptly complied with. However, the sheer volume of these sites creates a whack-a-mole scenario. For every site we manage to shut down, countless others emerge or become operational each day.”
While they’ve had compliance so far, Pitre did admit, “the companies in question are under no obligations to cooperate.”
Pitre said the Office of Enforcement Counsel has also tried to approach Google, Apple and Microsoft to get sweepstakes sites removed from their app platforms.
Pitre and Cook appealed to the committee to either create a regulatory framework for sweepstakes sites or revise existing laws to more clearly define what is and is not illegal interactive gaming in the state.
Several other states’ lawmakers have considered similar bills prohibiting sweepstakes sites. So far, three efforts have died and no others have advanced out of the state legislature.
