Pennsylvania lawmakers have introduced legislation that would prohibit microbets and certain gambling VIP programs while imposing stricter financial and time limits on online betting, as the state establishes a bipartisan caucus focused on problem gambling.
State Reps. Tarik Khan, a Democrat from Philadelphia, and Jamie Flick, a Republican representing Lycoming and Union counties, introduced House Bill 2879 on October 21. The proposal was referred to the House Gaming Oversight Committee. Both lawmakers joined the newly formed Problem Gambling Caucus, which was launched on the same day.
The Pennsylvania Online Consumer Protection Act would introduce restrictions on online casino games and sports betting, including limits on individual wagers, mandatory loss controls and tighter rules governing gambling promotions. The legislation also proposes funding for problem gambling prevention, treatment and research through a levy on online gambling revenue.
Two additional bills form part of the lawmakers’ legislative package. HB 2875 would prohibit the use of credit cards to fund online gambling accounts, while HB 2874 would strengthen protections for people registered on Pennsylvania’s self-exclusion list.
The proposals follow a statewide study that examined gambling-related harm and recommended changes to consumer protections. Lawmakers face a limited window to advance the measures, with Pennsylvania’s legislative session scheduled to end on November 30.
Study Highlights Concentration of Gambling Spending
The legislation draws on a study commissioned through a 2025 House resolution introduced by Khan. The resolution passed by a vote of 189-14, and the Joint State Government Commission published its findings in July.
The research identified a concentration of online sports betting expenditure among a relatively small proportion of customers. According to findings cited by Khan’s office, 5.7% of online sports bettors accounted for 80% of gambling spending. At one sportsbook, 0.5% of customers generated more than 70% of VIP program revenue during 2019 and 2020.
Khan said the findings raised concerns about operators’ marketing practices and their potential effects on vulnerable customers.
“What we found was deeply troubling: Gambling companies using predatory practices to keep people betting, even as they’re losing everything,” Khan said according to pahouse.com.
The study examined problem gambling behavior and children’s exposure to gambling advertising. Its recommendations included restrictions on credit-card payments, microbets and VIP programs, alongside controls on advertising and gambling activity.
The findings come amid continued growth in Pennsylvania’s regulated gambling market. According to the Pennsylvania Gaming Control Board, combined gaming revenue reached a record $6.8 billion in 2025, an increase of 10.74% from the previous year.
Online casino revenue rose 27.22% to approximately $2.8 billion, while sports betting revenue increased 17.97% to around $602.5 million.
A separate 2025 Pennsylvania Interactive Gaming Assessment, based on surveys of more than 3,500 residents, estimated that up to 30% of adults had participated in some form of online gambling during the preceding year. The comparable figure in the 2024 assessment was 20%. More than half of calls to the state’s 1-800-GAMBLER helpline concerned problematic online gambling.
Proposed Rules Would Limit Wagers and Gambling Sessions
HB 2879 would prohibit microbets, defined as live wagers on individual plays within a sporting event. Examples include betting on whether the next pitch in a baseball game will be a ball or strike, or whether an upcoming football play will be a run or pass.
The proposal would also prohibit proposition parlays combining multiple occurrences, non-occurrences or outcomes from a single sporting event. These restrictions would apply alongside a ban on VIP and loyalty programs that assign hosts to players or reward increased betting, deposits or losses.
Operators would face new requirements governing how customers fund their accounts. The legislation would prohibit direct or indirect credit-card funding for wagers and limit operators to two deposits per customer each day. An affordability assessment would be required before an operator accepted more than $5,000 in deposits over a 180-day period.
Customers would have to establish daily and monthly loss limits. The bill sets lower thresholds for younger adults, with additional restrictions on individual online casino wagers.
Players aged 21 to 25 could not place wagers exceeding $2 per play on an online casino game. For customers older than 25, the proposed maximum would be $5 per play.
The legislation would also impose loss thresholds that trigger mandatory periods without access to gambling. Players aged 21 to 25 would be locked out for 24 hours after losing $750 in a day or for 30 days after reaching monthly losses of $2,500. For players older than 25, the corresponding thresholds would be $1,500 in daily losses and $5,000 in monthly losses.
A default limit of two hours of gambling within a 24-hour period would also apply. The bill would prohibit autoplay features and sign-up or deposit bonuses, while restricting the use of artificial intelligence to target promotions based on customers’ losses or their risk of problem gambling.
Advertising Restrictions and Treatment Funding
The proposal would impose additional limits on gambling marketing, particularly advertising that reaches younger audiences. Operators would be barred from targeting people under 21 and from using celebrities, athletes or social media influencers likely to appeal to minors.
The proposed restrictions would also cover gambling advertisements on college campuses and near schools, as well as advertising broadcast between 8 a.m. and 10 p.m. or during live sports broadcasts.
Flick said the measures were intended to address the exposure young people face as gambling products become more accessible. Flick also compared online gambling with substance addiction during the caucus launch. “The drug of choice now just sits right in your pocket,” he said.
Khan emphasized that the proposals would preserve the ability to gamble recreationally while establishing safeguards against harmful practices. “People should be free to enjoy an occasional bet,” Khan said. “But the gambling industry shouldn’t be allowed to exploit addiction for profit.”
Under HB 2879, an assessment of 0.75% on online gaming and sports betting revenue would support problem gambling prevention, treatment and research. The Pennsylvania Department of Drug and Alcohol Programs would oversee the funding mechanism.
The proposal arrives as federal lawmakers increase their scrutiny of VIP programs and sportsbook marketing. Congressional inquiries have sought information from six sportsbooks and prediction markets about VIP revenue and customer perks, while previous scrutiny has focused on FanDuel’s promotional practices.
Pennsylvania’s proposed restrictions would establish statewide limits on programs that lawmakers believe could encourage continued gambling among customers experiencing losses. The package also reflects growing legislative attention to the use of behavioral data and AI in individualized gambling promotions.