Pennsylvania gambling laws allow casino gaming, online casino games, sports betting, the state lottery, video gaming terminals at qualifying truck stops, daily fantasy contests, pari-mutuel horse race wagering, and small games of chance run by nonprofits. Everything else — including unlicensed poker rooms, unregulated online sites, and bookmaking — is a crime under the state’s Crimes Code, and the so-called “skill games” now sitting in bars and convenience stores are the subject of active litigation at the Pennsylvania Supreme Court.
The Pennsylvania Gaming Control Board (PGCB) regulates most legal gambling in the state. A handful of categories sit elsewhere: the lottery runs through the Department of Revenue, horse racing through the State Horse Racing Commission at the Department of Agriculture, and small games of chance through county treasurers and municipalities.1PENNSYLVANIA GAMING CONTROL BOARD. PGCB Overview
Casinos and Online Casino Games
Legal casino gambling began with the Race Horse Development and Gaming Act of 2004, which authorized slot machines at existing horse-racing tracks. The market has since grown to four license categories:
- Category 1 racinos, full-scale casinos attached to licensed racetracks.
- Category 2 standalone casinos, not tied to a track.
- Category 3 resort casinos, operating inside qualifying resort hotels.
- Category 4 mini-casinos, created by the 2017 expansion law, running 300 to 750 slot machines and up to 30 table games with the possibility of 10 more after the first year.2PENNSYLVANIA GAMING CONTROL BOARD. Pennsylvania Gaming Control Board Awards Category 4 License in Centre County
The same 2017 law legalized online casino games. The PGCB regulates internet slots, table games, and poker, and every online operator must partner with a licensed land-based casino. Geolocation technology restricts play to people physically inside Pennsylvania. Licensed platforms are required to offer self-exclusion tools and deposit limits.
Sports Betting
Pennsylvania authorized sports wagering through Act 42 of 2017 and launched sportsbooks after the U.S. Supreme Court struck down the federal ban in Murphy v. NCAA in May 2018.3Supreme Court of the United States. Murphy v. National Collegiate Athletic Assn. Both retail sportsbooks inside casinos and mobile apps operate under PGCB oversight. You can bet on professional and college sports. Betting on high school athletics is prohibited. The minimum age is 21.
Pennsylvania Lottery
The Pennsylvania Lottery, established in 1971, is the only state lottery whose proceeds are entirely dedicated to programs for older residents, including property tax and rent rebates, prescription assistance, and senior transportation.4PA Lottery. Benefits Info Games include Powerball, Mega Millions, scratch-offs, and iLottery online play. Only state-authorized retailers can sell tickets, and buyers must be at least 18.
Video Gaming Terminals at Truck Stops
The 2017 expansion law authorized video gaming terminals (VGTs) at qualifying truck stops. Each play is randomly determined, similar to a slot machine, with a maximum bet of $5 and a maximum payout of $1,000 per play. The minimum theoretical payout is 85%.5pgcb.pa.gov. VGTs at Truck Stops FAQ
A truck stop qualifies only if it sells an average of at least 50,000 gallons of diesel per month, has at least 20 dedicated commercial-vehicle parking spaces, operates a convenience store, is a Pennsylvania Lottery sales agent, and sits on at least three acres. A qualifying location can operate up to five VGTs, the terminals must be in an area supervised by an employee and separated from minors, and players must be 21. Counties that already host a casino may opt out of allowing VGTs.5pgcb.pa.gov. VGTs at Truck Stops FAQ
Fantasy Contests
Daily fantasy sports are legal and regulated by the PGCB under Chapter 3 of Title 4 of the Pennsylvania Consolidated Statutes. Licensed operators must let players set deposit, spending, and entry-count limits.6PENNSYLVANIA GAMING CONTROL BOARD. Fantasy Contests Fantasy contests played inside a casino require players to be 21; outside a casino, the minimum age is 18.
Horse Racing and Pari-Mutuel Betting
Pari-mutuel wagering on horse racing predates casino gambling in Pennsylvania. The Pennsylvania State Horse Racing Commission, housed under the Department of Agriculture, regulates live racing and off-track betting, and licensed platforms accept online pari-mutuel wagers. The minimum age is 18. Anyone under 18 may attend a race meeting only with a parent or guardian.
Small Games of Chance
Nonprofit organizations and certain clubs can run raffles, pull-tabs, punchboards, and drawings under the Local Option Small Games of Chance Act. This category is not overseen by the PGCB. Licensing runs through county treasurers and municipalities that have opted in.
Prize limits are strict:
- Single-chance prize: up to $2,000 per game.
- Weekly aggregate: no more than $35,000 in total prizes in any seven-day period.
- Monthly raffle limit: up to $15,000 in raffle prizes per calendar month under a regular license.
- Special raffle permits: available for individual prizes above $3,000, capped at $150,000 in total special-raffle prizes per calendar year.7Pennsylvania General Assembly. Local Option Small Games of Chance Act
The annual license fee is $125 for a regular license or $25 for a monthly license. Violations carry civil penalties starting at $500 for a first offense and rising to $1,500 for a third or subsequent offense, and criminal penalties can include license forfeiture.7Pennsylvania General Assembly. Local Option Small Games of Chance Act
Minimum Age by Game Type
The legal age depends on what you’re playing:
- 21 and older: casino slots and table games (land-based and online), sports betting, VGTs at truck stops, and fantasy contests played inside a casino.
- 18 and older: lottery tickets and iLottery, pari-mutuel wagering on horse racing, and fantasy contests played outside a casino.4PA Lottery. Benefits Info
Casinos verify age with government-issued ID. Attempting to gamble underage can lead to ejection and additional penalties, and lottery retailers face consequences for selling tickets to minors.
What Is Not Legal
Unlicensed Gambling Operations
Running a gambling operation without a license is a first-degree misdemeanor. The statute reaches broadly: maintaining gambling devices, allowing people to gather for unlicensed gambling on your property, and soliciting people to visit an illegal gambling location all fall within it.8Pennsylvania General Assembly. Pennsylvania Code Title 18 – Crimes and Offenses 5513 – Gambling Devices, Gambling, Etc. Underground casinos, unauthorized sports betting rings, and unregulated online platforms are all covered.
Skill Games
Thousands of unregulated machines branded as “skill games” operate in bars, convenience stores, and gas stations across Pennsylvania. Manufacturers argue the devices involve enough player skill to fall outside the legal definition of gambling. State authorities, including the Attorney General’s Office, counter that the machines function like slot machines and violate the gaming law. As of late 2025, the Pennsylvania Supreme Court heard oral arguments on the question, and a ruling could come in 2026. The legislature has discussed a tax-and-regulate framework but has not enacted one. For now, these machines remain untaxed, unregulated, and in legal limbo.
Private and Social Games
Pennsylvania does not have a clear statutory safe harbor for social gambling. The Crimes Code broadly prohibits unlicensed gambling, and a separate statute makes pool selling and bookmaking a first-degree misdemeanor. If you host a poker game and take a cut of the pot, or charge fees beyond covering basic costs, you risk criminal liability. Workplace betting pools for events like the Super Bowl carry the same risk when an organizer profits. Small, truly informal games among friends where nobody profits except through winnings are less likely to draw enforcement attention, but nothing in the statute explicitly protects them.
Penalties for Illegal Gambling
The PGCB and the Pennsylvania State Police Bureau of Gaming Enforcement share enforcement duties, from routine casino compliance inspections to undercover operations targeting illegal gambling rings.
Operating an illegal gambling establishment is a first-degree misdemeanor, punishable by up to five years in prison and a fine of up to $10,000.8Pennsylvania General Assembly. Pennsylvania Code Title 18 – Crimes and Offenses 5513 – Gambling Devices, Gambling, Etc.9Pennsylvania General Assembly. Pennsylvania Code Title 18 – Chapter 11 – Authorized Disposition of Offenders Repeat offenders or people involved in large-scale operations may face felony charges. Licensed operators who violate gaming regulations risk license revocation and civil penalties on top of any criminal exposure.
Players are not immune. Using a false ID to enter a casino or laundering money through gambling transactions can bring criminal charges. The PGCB also maintains a voluntary self-exclusion program covering casinos, online gambling, VGTs, and fantasy contests. If you place yourself on the list and then enter a casino, you can be charged with trespassing.
Taxes on Winnings
All gambling and lottery winnings are taxable income in Pennsylvania. The state personal income tax rate is 3.07%, and gambling winnings are treated as a separate class of income.10Commonwealth of Pennsylvania. Gambling and Lottery Winnings Casinos, sportsbooks, and the lottery issue a W-2G form for prizes of $600 or more. The Pennsylvania Lottery automatically withholds state tax on winnings over $5,000.11Pennsylvania Lottery. Winners Guide Federal withholding of 24% also kicks in at the $5,000 threshold.
Pennsylvania lets you subtract the cost of your wagers from your winnings when calculating taxable gambling income for state purposes. Spend $800 on lottery tickets across the year and win $2,000, and you report $1,200 as net gambling income. Other gambling-related expenses like parking, travel, meals, and entry fees are not deductible.10Commonwealth of Pennsylvania. Gambling and Lottery Winnings Keep records; the burden of proof is on you.
Federal rules work differently. You must report all gambling winnings as income. Losses are deductible only if you itemize on Schedule A, and only up to the amount of your reported winnings — losses cannot create a net deduction. The IRS expects a diary or records of both winnings and losses, along with receipts, tickets, and statements.12Internal Revenue Service. Topic No. 419, Gambling Income and Losses
If you split a winning ticket or bet, the person who collects the payout must complete IRS Form 5754 identifying each winner’s share. The casino or lottery then issues separate W-2Gs to each person based on that form.13Internal Revenue Service. Form 5754 – Statement by Person(s) Receiving Gambling Winnings Skip it and the full amount gets reported under one Social Security number.