HARRISBURG, PA — Pennsylvania lawmakers are seeking to restrict online gambling practices that generate substantial revenue from a small share of bettors, introducing bipartisan legislation this week to prohibit certain wagering features, limit customer losses, and regulate gambling promotions.
State Reps. Tarik Khan, D-Philadelphia, and Jamie Flick, R-Lycoming/Union, introduced the proposal following a state-commissioned study that found online gambling expenditures were heavily concentrated among a relatively small group of customers.
The legislation would ban rapid-fire microbets and certain VIP programs, prohibit gambling with credit cards and require financial safeguards, including deposit and loss limits.
It would also restrict advertising directed at minors and young adults, regulate artificial intelligence-driven promotions targeting people vulnerable to gambling addiction, establish gambling time limits and prohibit automatic wagering.
The proposal comes as lawmakers establish a bipartisan Problem Gambling Caucus to address gambling addiction and related consumer protection issues. Khan and Flick are members of the new caucus.
The legislation draws on findings from a statewide study released in July 2026, following a resolution Khan introduced in 2025 that passed the Pennsylvania House by a 189-14 vote.
According to the study, just 5.7% of online sports bettors accounted for 80% of gambling expenditures.
At one sportsbook examined in the study, 0.5% of customers generated more than 70% of revenue through its VIP program.
Those findings have become central to the lawmakers’ argument that certain industry practices encourage excessive gambling among customers responsible for a disproportionate share of wagering activity.
The study identified several potential consumer protections, including restrictions on microbets and VIP programs and a prohibition on credit-card gambling.
“Problem gambling ruins lives and destroys families,” Khan, a nurse practitioner, said. “That’s why I pushed for this statewide study in the first place.”
Khan criticized gambling companies for practices he contends encourage customers to continue wagering despite mounting financial losses.
The proposed restrictions would affect how online gambling operators structure betting products, market their services and manage customer accounts.
Microbets, which allow wagers on individual events within a sporting contest, would be prohibited under the legislation’s restrictions on rapid-fire betting.
The proposed ban on certain VIP programs would target incentives designed to encourage higher levels of gambling activity, while mandatory deposit and loss limits would establish additional financial controls.
The bill would also address the use of artificial intelligence in gambling promotions, particularly marketing directed at individuals considered vulnerable to addiction.
Flick emphasized the legislation’s protections for younger consumers.
“Kids today are growing up surrounded by sports betting advertisements and gambling apps,” Flick said. “We need to make sure the next generation isn’t being drawn into gambling addiction before they fully understand the risks.”
Beyond restrictions on gambling operators, the legislation would establish a revenue assessment on online gambling to finance addiction prevention, treatment and research.
It would also assign additional responsibilities to the Pennsylvania Department of Drug and Alcohol Programs as part of a broader public health approach to problem gambling.
The proposal would not prohibit recreational online gambling generally, according to its sponsors.
“People should be free to enjoy an occasional bet,” Khan said. “But the gambling industry shouldn’t be allowed to exploit addiction for profit.”
The legislation represents a bipartisan effort to translate the state’s gambling research into enforceable consumer protections, with potential consequences for online operators’ wagering products, promotional programs and revenue practices if enacted.
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