State Report Warns Pennsylvania on Online Gambling Harm

HARRISBURG, Pa.: A Pennsylvania state report has recommended stronger safeguards for online gambling as lawmakers weigh addiction risks against casino revenue.

The report says the state could act quickly with tighter controls on credit cards, advertising, VIP programs and player limits, or move more slowly while gathering more data.

The Pennsylvania Joint State Government Commission report, titled “Sports Betting and Related Interactive Gambling in Pennsylvania”, was authorized by 2025 House Resolution 60. It examines sports betting, online casino gaming and related interactive gambling in one of the largest regulated gambling markets in the United States.

Report Recommends Faster Harm Reduction

The report outlines several measures that could be used to reduce gambling harm quickly. Those include banning the use of credit cards for online gambling, requiring players to set limits before they gamble and creating new restrictions on gambling advertising.

Other options include limits on promotions for people who do not hold accounts, restrictions on promotions generated by artificial intelligence and a ban on in-game sports betting. The report also discusses possible limits on VIP programs, which can provide personalized services and incentives to high-value customers.

Those proposals would represent a major shift in how Pennsylvania oversees online casino and sports betting operators. Current safeguards often rely on players choosing to use voluntary tools such as deposit limits, cooling-off periods and self-exclusion.

The report questions whether that approach is enough for people with gambling disorder. It cites research supporting a broader public health response, rather than a framework built mainly around individual responsibility.

Revenue Concerns Remain Central

Pennsylvania legalized online casinos in 2017 and has since become one of the most important online gambling markets in the country. The report notes that gambling revenue provides major economic benefits to states where iGaming and sports betting are legal.

That revenue creates a policy tension. Measures that reduce harmful gambling may also reduce operator revenue and state tax receipts, particularly if the most active or highest-loss players account for a large share of gambling profits.

The report reviews studies suggesting a small share of players can account for a large share of gambling revenue. It also recommends that operators provide anonymized player data to an outside nonprofit agency so researchers can identify patterns linked to gambling harm.

That approach would allow Pennsylvania to develop more targeted interventions based on real player behavior. However, the report also suggests that slower, data-driven reform may leave some gambling harms unaddressed while lawmakers continue to study the issue.

State Sen. Wayne Fontana has already proposed legislation to restrict online casino credit card use. Similar payment restrictions have gained attention in other states, including Illinois, where regulators previously approved a ban on credit cards for gaming.

Advertising and Player Limits Under Review

The report comes as the Pennsylvania Gaming Control Board has also proposed new rules aimed at gambling harm. Those rules include more account limit options, temporary account suspensions and monthly operator reporting on self-limits, self-exclusion and account closures related to problem gambling.

The proposed advertising rules would restrict excessive ad saturation, limit marketing where most of the audience is children and allow people to opt out of direct gambling marketing. They would also prohibit gambling ads that misrepresent winning odds or describe promotions as free or risk-free when players must stake their own money to qualify.

The commission report highlights examples of online gambling promotions that appear to offer free money but include conditions requiring players to risk their own funds. Those promotions have become a focus for clinicians and addiction specialists who argue that online operators can keep vulnerable players engaged even after signs of harm appear.

The Pennsylvania Psychiatric Society and the Pennsylvania Society of Addiction Medicine have also described gambling harm as a public health issue. Their position aligns with the report’s emphasis on gambling disorder, debt, shame and suicide risk.

The debate now moves to lawmakers and regulators. Some recommendations would likely require legislation, while others could move through the Gaming Control Board’s rulemaking process.

For Pennsylvania, the question is not whether online gambling is already a major revenue source. It is whether the state is prepared to limit some commercial activity in order to reduce gambling harm, especially as casino gaming and sports betting remain available on smartphones around the clock.

RELATED TOPICS: Responsible Gambling