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A new effort to regulate Pennsylvania’s controversial skill games is underway in the state House.
House Bill 2213, recently introduced by Rep. Danilo Burgos, seeks to create a formal regulatory structure for the thousands of skill video gaming terminals currently operating across the commonwealth. This is Burgos’ second skill games bill this session, which aims to bring oversight, licensing and significant revenue collection to a market that has operated for years in a legal “gray” area.
Skill games have expanded rapidly across Pennsylvania. Unlike slots in casinos, the devices have been deemed games of skill by state courts, allowing them to avoid classification under existing gambling laws.
$300 million revenue projection
HB 2213 would impose a $500 monthly fee per terminal and cap the total number of machines statewide at 50,000. The bill estimates the structure could generate roughly $300 million annually for Pennsylvania.
The bill positions itself as a revenue solution at a time when lawmakers continue to debate budget pressures and potential funding gaps. By establishing predictable fees and oversight, backers argue the state can capture funds that are currently untaxed while providing clarity to operators and small businesses that host the machines.
The legislation does not classify the terminals as traditional casino gambling devices but instead creates a distinct regulatory pathway tailored specifically to skill games.
Burgos also spearheaded HB 2046 in November, which also establishes fees and cuts taxes for Category 4 mini-casinos.
Local control and oversight
In addition to state-level licensing requirements, HB 2213 includes provisions that would allow municipalities to set health and safety standards for establishments operating skill game terminals. Lawmakers backing the bill say local governments should have the ability to address concerns about machine density and placement within their communities.
The debate over skill games has long centered on their widespread presence outside of casinos and the Pennsylvania Lottery system. Casino operators and lottery officials have previously argued that the machines siphon revenue from heavily regulated gaming sectors that contribute significant tax dollars to the state.
Supporters of skill games counter that the devices provide supplemental income to small businesses and veterans’ organizations and that regulation – rather than prohibition – is the appropriate path forward. Skill games manufacturers point to Pennsylvania online casinos as the real competition to land-based properties.
Part of broader skill games debate
HB 2213 enters a crowded policy discussion in Harrisburg. Gov. Josh Shapiro has previously proposed taxing skill games as part of his broader budget framework, suggesting a 52% tax on gross terminal revenue rather than a flat monthly fee.
Meanwhile, legal uncertainty still looms. Although lower courts have ruled certain skill games legal, broader questions about their status under Pennsylvania law remain under review at the Supreme Court level.
Whether HB 2213 advances will likely depend on negotiations over tax rates, regulatory authority and how the proposal aligns with competing plans in both the House and Senate.
For now, the introduction of the bill signals that lawmakers are once again attempting to bring structure to one of Pennsylvania’s most debated gaming industries.
