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A new bipartisan proposal introduced in the Pennsylvania Senate would impose sweeping oversight on skill games and sharpen enforcement against unlicensed machines and nuisance locations.
Senators Gene Yaw (R-23) and Anthony Williams (D-8) announced the legislation Oct. 27, saying it builds on prior efforts to regulate the games often operating outside the full glare of gambling-law enforcement. The bill would help protect the regulated market, which include retail and PA online casinos.
Details of legislation
Senate Bill 1079 comes from a memo the state senators wrote in August.
The measure would replace an earlier proposed tax structure with a flat $500 monthly fee per machine. Under the plan, licensees would pay the fee for each skill-game device deployed in their establishment.
Yaw indicated that the fee structure is projected to generate approximately $300 million annually. Nearly half of the revenue would be directed toward public transportation, infrastructure, and the state’s Clean Streams Fund.
In addition to the financial model, the legislation proposes several regulatory safeguards:
- Only players with valid identification may play the machines
- Number of machines per location would be restricted
- Must serve only as a secondary revenue source for the business, rather than being the primary business activity
- Each machine would be required to connect to a central terminal system so regulators could monitor activity, akin to the way the state runs its lottery operations.
Curbing illegal gambling
Williams noted that many neighborhoods across Pennsylvania have raised concerns about unregulated machines and “stop-and-go” convenience/liquor stores that serve as hubs for illegal gaming and other disruptive activities.
The bill explicitly prohibits skill games in such “stop-and-go” establishments, which are defined as retail liquor license-based convenience stores or delis that fail to maintain full licensure standards. The legislation ties into the work of the state’s Stop-and-Go Legislative Taskforce.
Yaw emphasized that “there is broad recognition of the need to regulate skill games. This legislation delivers immediate revenue, supports small businesses and veterans’ organizations, and puts safeguards in place to protect our communities.”
Importance of bipartisan sponsorship
The bipartisan nature of the proposal underscores a shared concern over unlicensed gaming devices and their impact on communities across Pennsylvania. As this moves through legislative committees, it will be of particular interest to the gaming industry, business owners deploying skill games, and local governments seeking tools to manage nuisance locations.
For gaming-industry stakeholders and operators of skill machines, the proposed changes would mark a significant shift: more oversight, higher cost of operation, and tighter links to state monitoring systems.
For municipalities and neighborhood groups, the bill offers a new lever to counter unregulated activity and recover public revenue.
Yaw’s second skill games bill
This is the second skill machines legislation Yaw has introduced this year. In April, he proposed Senate Bill 626 that would have taxed the games at a 16% rate. Representative Danilo Burgos also filed an identical bill in the House.
That legislation would have also generated an estimated $300 million in revenue a year.
Yaw is all-in on regulating skill games at a fair rate for small businesses. He seems to have solid bipartisan support.
