Inside Pennsylvania's online gambling boom that has lawmakers staring down a multibillion-dollar dilemma

A new report from a Pennsylvania commission highlights a growing problem in the state, yet lawmakers are faced with a number of tough decisions in their search for a solution.Earlier this month, the Joint State Government Commission of Pennsylvania published a report on the state of online gambling, including sports betting, which has exploded in popularity since the United States Supreme Court struck down a federal 1992 prohibition on sports betting in May 2018. 'Imagine if you were trying to quit drinking and someone kept leaving alcohol at your doorstep and then left coupons for alcohol at your doorstep.'By the beginning of 2025, "95% of all sports betting wagers and 60% of all slot machine wagers in Pennsylvania were made online," according to the House resolution prompting the report, citing public data from the Pennsylvania Gaming Control Board.The issues within this relatively new industry abound, according to the report.Convenience is one such issue. Online gamblers now have access to online casinos "24/7," no longer need to plan or pay for accommodations, and often enjoy "more generous" bonuses and promotions than can be found in traditional casinos. Gamblers can also use platforms like PayPal and Venmo as well as credit cards for payment, making online gambling an attractive option for many gamblers.RELATED: Debit card company promises to pay your bill ... sometimes: 'Buy now, pay maybe' Aaron M. Sprecher/Getty ImagesThe report details a number of online casinos' bonus offers and marketing tactics, including "promotions, in-game advertising, advertising during sports broadcasts and webcasts, as well as using celebrated and animated spokespersons." Artificial intelligence is often used to create this marketing content.While the marketing tactics may seem innocuous, the report goes on to highlight several ongoing lawsuits against various online gambling platforms, in which it is alleged that the promotions were, for example, "false and misleading" or that the platform's systems were "highly addictive." In one particularly illustrative example, the report references a lawsuit called Brubaker v. Chester Downs & Marina that alleges, according to a Public Health Advocacy Institute summary:a false and misleading promise of a "$2,500 deposit match." Only in the small-print terms and conditions is it disclosed that a new customer playing blackjack is required to gamble $375,000 in just the first seven days after opening an account. In other words, no money or winnings can be withdrawn unless a total of $375,000 is risked. All money lost during the first seven-day period is kept by Caesars and Harrah’s Casino.Kavita Fischer, a Pittsburgh-area psychiatrist and a leading proponent of addressing these issues after her own online gambling addiction, told the Associated Press: “The report made it clear that gambling is not a personal failing, it’s a public health issue, and the recommendations really reflect that."She described to the AP what she called the "predatory" nature of many of the platforms' marketing schemes. “I had so many quit dates,” she said. “Imagine if you were trying to quit drinking and someone kept leaving alcohol at your doorstep and then left coupons for alcohol at your doorstep. That is what is the predatory part of all of this.”The report noted that, while state law prohibits any person under 21 years old from gambling, the intended limitations on youth exposure to gambling advertisements has apparently been circumvented by social media and influencers, who use a "blend of promotional intent with entertainment" to promote gambling services without announcing that they are making an advertisement. Among the biggest problems, though, is the possible connection between online casinos and an increase in compulsive or problem gambling. As evidence, the report said that calls about internet gambling placed to a gambling hotline and categorized as the "most problematic form of gambling" skyrocketed from under 100 calls per year in 2019 to over 900 by 2025.While the individual and social problems that apparently stem from this industry seem to abound, lawmakers face a dilemma that will likely cause significant disagreement in the searches for a solution. For one thing, this new industry is a massive cash cow for the state. "There is no denying that the revenue from online gambling and sports betting can be economically beneficial overall for the states where iGaming is legal," the report stated. Citing Pennsylvania Gaming Control Board data, the report says the revenue from legal gambling nearly reached a staggering $6.4 billion in fiscal year 2024-2025, 39% of which was from iGaming alone. The growth shows no sign of stopping either. According to a May 2026 press release from the PGCB, iGaming revenue saw a massive year-over-year increase, crossing a quarter billion dollars in revenue: "Casino games offered online generated $254,825,042 during May 2026. Compared to revenue of $232,853,763 in May 2025, this represents an increase of 9.44%."Other PGCB data points from the report present a revealing picture of the unique growth that online forms of gambling have undergone since their legalization. While slot machine revenue has essentially remained stable at or around $2.4 billion in yearly revenue since fiscal year 2012-2013, with the exception of a dip during the pandemic, iGaming revenue has grown tenfold in less than half that time. Sports wagering, video gaming terminals, and fantasy sports contests have seen impressive growth as well. The solutions, as mentioned previously, come with some trade-offs. The commission suggested, first, that Pennsylvania follow the lead of states like Colorado and Massachusetts and begin collecting anonymized data from online transactions on gambling platforms. This would ostensibly allow for a more "precise" identification of "harmful" practices and potentially identify gambling trends among the population. More immediate proposals include the prohibition of the use of credit cards for deposits, mandatory limits on play time, banning logged-out promos, geospatial advertising blockers at places like universities, and the prohibition of the use of artificial intelligence for individualizing marketing strategies.Doug Harbach, the PGCB director of communications, responded to Blaze News' request for comment on Thursday, saying, "This report was drafted for possible action by the General Assembly, and the PGCB will continue to work with them on these issues. We wholeheartedly agree that effective and legal additions to the Gaming Act and regulations should be considered to protect the gaming public." Harbach added that the PGCB has a set of proposed regulations dealing with problem gambling, which the public can view and submit comments on no later than August 11. The public can learn more and review these proposals on the PA Bulletin website.Blaze News reached out to DraftKings, the American Gaming Association, and Caesars Entertainment but did not immediately receive a response. Like Blaze News? Bypass the censors, sign up for our newsletters, and get stories like this direct to your inbox. Sign up here!