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Pennsylvania could unlock tens of millions of dollars in new annual revenue by formally regulating Social Plus gaming platforms, otherwise known as sweepstakes casinos, according to a new industry-backed report examining the segment’s footprint in the commonwealth.
The study, Impact of Social Plus in Pennsylvania, prepared by Eilers & Krejcik Gaming for the Social Gaming Leadership Alliance (SGLA), estimates that Social Plus platforms already generate hundreds of millions of dollars in player spending in the state. With no tailored regulatory framework currently in place, supporters argue that Pennsylvania is leaving potential tax dollars and licensing revenue on the table.
The market is operating in a “gray” area, with only Pennsylvania online casinos and Pennsylvania sportsbooks as the only regulated forms of online gambling in the Keystone State.
Over $440M in annual player spending
The report projects that Social Plus platforms will generate approximately $12.5 billion in total player spending nationwide in 2025. Pennsylvania’s share is estimated at roughly $446 million, or about 3.6% of the national total.
After accounting for prize costs, the report estimates approximately $143 million in net revenue attributable to Pennsylvania players.
While that activity currently operates outside of a dedicated state licensing system, the analysis suggests that formal oversight could convert a portion of that spending into direct revenue for the commonwealth.
Licensing fees could add millions
One potential revenue stream would come from implementing registration or licensing requirements for sweeps operators serving Pennsylvania customers.
According to the report’s modeling, annual licensing and registration fees could generate tens of millions of dollars per year, depending on how the framework is structured and how many operators participate in the market.
For context, Pennsylvania already charges substantial licensing fees for regulated iGaming operators and sports wagering platforms. A Social Plus framework, while likely structured differently, could similarly require upfront and recurring payments to operate legally in the state.
Sales tax collection could exceed $40M
In addition to licensing fees, the report highlights state sales tax as another significant opportunity.
If Pennsylvania were to ensure consistent collection of state sales tax on eligible Social Plus purchases, the study estimates the commonwealth could realize more than $40 million annually in additional tax revenue.
Because Social Plus platforms involve player purchases tied to promotional sweepstakes entries and digital entertainment products, clarifying their tax treatment could create a recurring revenue stream without imposing a traditional gaming tax rate.
Combined with licensing fees, total annual state revenue tied to regulation could reach well into the tens of millions of dollars.
Large adult population drives market size
Pennsylvania’s projected $446 million share of national Social Plus spending is driven in part by its nearly 9.8 million eligible adults, relatively strong disposable income levels, and broad broadband access, according to the report.
Those factors have helped make Pennsylvania one of the largest regulated iGaming markets in the country. The same digital infrastructure and consumer familiarity with online gaming appear to support demand for Social Plus platforms as well.
Regulation debate continues
Social Plus platforms, which operate using sweepstakes promotional structures and provide an alternate method of entry, currently exist outside the law in many states, including in Pennsylvania.
Industry advocates argue that regulation would not only enhance consumer protections but also allow states to capture revenue from an already active market. The Pennsylvania Gaming Control Board sent 18 cease-and-desist letters to sweeps operators last April.
For Pennsylvania lawmakers, the key question may be whether formal oversight of Social Plus gaming represents a new recurring revenue source at a time when iGaming and sports wagering taxes already play a significant role in the state budget.
If the report’s projections hold, regulating the sector could add tens of millions of dollars annually to Pennsylvania’s coffers – without creating an entirely new form of gaming, but rather by bringing an existing one under state control.
