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The Pennsylvania gambling scene in 2025 was filled with stories that changed the landscape of the industry. Next year could be even more critical for the Keystone State.
Pennsylvania is one of the richest gambling states in the US, with online casinos, retail properties and online sportsbooks as the top gaming options. There have been evolutions to those verticals, along with new obstacles the market has encountered.
PlayPennsylvania is going to look ahead at what the top stories in 2026 could be.
Can iGaming continue to grow?
Pennsylvania iGaming platforms have reached new heights in 2025. Through 11 months, the market has already achieved nearly $3.14 billion in year-to-date revenue.
With December totals yet to be released, the industry has already eclipsed 2024’s total of $2.71 billion. In 2025, platforms are on pace to produce $3.42 billion, which is a 26.2% increase.
The market recently generated at least $300 million in consecutive months for the first time ever.
It’s clear Pennsylvania is the No. 1 state when it comes to iGaming revenue. The question is, can the industry continue to grow at the same rate? Or are we going to see a slowdown in 2026?
Skill games decision
Pennsylvanians are likely to see a decision made on the controversial skill games debate. The Pennsylvania Supreme Court fielded arguments over the legality of the machines last month.
While there is no timetable on the decision, lawmakers have been attempting to regulate and tax the games. Right now, the games, although considered legal, are operating in a “gray” area without regulations.
Here are some of the bills that lawmakers have introduced in 2025 that could gain more traction in 2026:
- Sen. Gene Yaw: Introduced SB 626, which enacts a 16% tax on the machines
- Sen. Gene Yaw: Introduced SB 1079, establishing fees
- Sen. Chris Gebhard: Introduced SB 756, which includes a 35% tax on the machines
- Rep. Kerry Benninghoff: Introduced HB 1619, which would place no additional tax on the games
- Rep. Danilo Burgos: Introduced HB 2046, which would establish higher licensing fees
Threats to legal gambling
Other types of so-called gambling have emerged not only in Pennsylvania but across the country. Many states have been struggling with prediction markets and sweepstakes casinos.
States such as New York and California have banned sweeps. However, Pennsylvania has not as of yet. The Pennsylvania Gaming Control Board has jurisdiction over only legal gambling and can only refer other verticals to the state police.
The PGCB argued in a hearing last April that sweeps are not subject to the same consumer protections legal operators are, therefore, consumers are being put at risk.
Prediction markets become a new medium that started early in 2025 and are now in mostly every state. Consumers can purchase “yes” or “no” sports contracts, which became much more prevalent toward the end of the year. They are federally regulated through the Commodity Futures Trading Commission.
Like sweeps, prediction markets are not subject to any testing. PGCB General Counsel Steve Cook addressed lawmakers in a hearing earlier this month and issued a warning:
“This creates a disastrous gap in our safety net. A resident who has legally acknowledged a gambling problem and joined our exclusion list can simply use an app like Kalshi to trade on the very same sports outcome they are banned from betting on in the commonwealth.
“This undermines the efficacy of the state’s protection mechanisms. While federal platforms may offer voluntary opt-outs, they lack the statutory force, centralized enforcement and cross-operator blocking capabilities of the PGCB’s system.”
New Jersey and Kalshi, a prediction market operator, are currently involved in a lawsuit that could determine the legality of certain offerings, especially sports. A decision in 2026 could weigh heavy on what happens in Pennsylvania.
Closing the smoking loophole
Smoking inside Pennsylvania casinos has been a major point of emphasis over the last several years. In 2025, the effort picked up momentum.
In October, the House Health Committee voted 22-4 to approve House Bill 880, known as the Protecting Workers from Secondhand Smoke Act.
Rep. Dan Frankel (D-Allegheny) has been the face of the movement for Pennsylvania lawmakers. After the vote, he said:
“There’s nothing partisan about this – Democrats and Republicans agree that a blackjack dealer’s lungs deserve the same protection as an office worker’s.”
Frankel, along with many casino workers, are attempting to close the loophole of the 2008 Clean Indoor Air Act.
New Jersey is also fighting the same battle. It remains to be seen whether 2026 is the year smoking becomes banned inside casinos in both the Keystone and Garden states.
New casino set to open
A new Pennsylvania property, Happy Valley Casino, is on track for an April 2026 grand opening. It is set to become the 18th retail casino in Pennsylvania.
The property is expected to open with 600 slots and 30 table games, with plans of expanding. The PGCB granted Happy Valley Casino with a slots and table games license last month.
The casino will not open without its challenges. The previous owner, Ira Lubert of SC Gaming, went through four years of litigation before the Pennsylvania Supreme Court ruled in favor of the PGCB’s decision to issue the license.
Lubert went through a change of ownership earlier this year, as Saratoga Casino Holdings now owns 60% of the property. The PGCB approved a license for the new owners earlier this month.
There are likely to be key developments with all these stories in 2026.
