Pennsylvania Senate Moves to Tax and Regulate Skill Games

Pennsylvania’s gambling landscape, appearing in numerous local establishments from convenience stores to veterans’ clubs. With concerns mounting over their rapid spread and impact on both consumers and regulated casinos, the Pennsylvania Senate is now considering new legislation designed to bring these games under official control through taxation and regulation.

Pennsylvania Senate Advances Effort to Regulate Skill Games

The Pennsylvania Senate is actively considering slot machines but currently unregulated, have become widespread throughout the state, prompting lawmakers to act.

This bill proposes a 35% tax on the revenue generated from skill game machines, alongside restrictions that limit businesses to no more than seven machines each. Additionally, the bill raises the minimum age for players to 21 years old. These measures seek to manage the expansion of skill games, ensuring consumer protection and fair competition with regulated casinos.

Divergent Views Among Legislators and Industry Experts

Senator Dan Laughlin, a vocal proponent of the bill, stressed the ubiquity of skill games in Pennsylvania. “These ‘skill games’, they’re literally everywhere now and they’re taking quite a bite out of the pockets of both our consumers and our casino businesses,” he said. He characterized these machines as “mini-casinos,” underscoring their significant impact on the gambling landscape in the state.

However, the legislation faces opposition from representatives of the skill game industry, including Mike Barley, Chief Public Affairs Officer at Pace-O-Matic. Barley voiced concerns that the bill does not strike the appropriate balance between state revenue goals and protecting the income streams for small businesses and fraternal organizations. “This was always trying to find a balance between protecting the revenue that small businesses and fraternal clubs make while providing some benefit to the state, and unfortunately, this bill falls woefully short,” he explained.

Financial Importance of Skill Games for Community Organizations

Skill games are commonly found in locations such as convenience stores, gas stations, laundromats, and notably, in community hubs like American Legions and Veterans of Foreign Wars (VFW) halls. These local venues depend heavily on the income generated by skill game machines to fund community projects and charitable causes. Barley highlighted how these funds contribute to crucial programs, including purchasing equipment for volunteer firefighters and financing community initiatives led by fraternal clubs.

While Senator Laughlin acknowledged the role these games play in sustaining local businesses and organizations, he emphasized the necessity of regulating the rapidly growing presence of skill games across the state. An alternative approach under discussion involves adjusting the tax rate to align with the rate imposed on casino table games, indicating that negotiations remain fluid and ongoing.

As Senate Bill 756 continues through legislative debates, stakeholders from both sides seek a resolution that addresses the state’s regulatory and revenue objectives while preserving essential funding channels for small businesses and community groups.

Source:

Pennsylvania Senate weighing bill to tax, regulate skill games, yourerie.com, May 14, 2025