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Pennsylvania Bill Would Legalize Skill Games and Steer Tax Revenue to Property Tax Relief

Rep. Russ Diamond’s plan could generate nearly $1 billion more for Pennsylvania’s Property Tax Relief Fund, but local governments stand to lose their current revenue share.
With Pennsylvania's skill game stay set to expire, Rep. Russ Diamond is preparing a Pennsylvania bill to legalize and tax the machines before the deadline.
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Tyler Andrews Avatar
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A Pennsylvania lawmaker plans to introduce a bill that would legalize and regulate skill games in certain licensed venues. The bill would also redirect more gaming tax revenue to statewide homeowner property tax relief.

Rep. Russ Diamond, a Republican from Lebanon and the minority chair of the House Gaming Oversight Committee, wants to allow skill games in social clubs, restaurants, bars, and truck stops, holding active Pennsylvania Liquor Control Board licenses. Under his framework, each qualified location could operate up to five terminals.

The proposal comes after the Pennsylvania Supreme Court ruled that unregulated skill games are slot machines. Diamond said that decision requires changes to state law.

What Diamond’s Proposal Would Do

Diamond’s plan would impose a 20% tax on gross gaming revenue from skill games. He also wants to eliminate local share disbursements and instead send more money to statewide property tax relief.

Under the allocation outlined in the report, gaming tax revenue in the State Gaming Fund would be distributed as follows:

  • 79% to the Property Tax Relief Fund
  • 13.25% to the General Fund
  • 6.75% to the Race Horse Development Trust Fund
  • 1% to the Compulsive and Problem Gambling Treatment Fund

Diamond said in a memo to colleagues that Pennsylvania’s gaming market has changed significantly since slot casinos were first authorized. He pointed to

“Authorized legal gaming in the Commonwealth has been expanded to include table games, internet-based gaming, and sports wagering.”

Why the Bill Could Face Resistance

According to the source, the measure is likely to face opposition from municipal and county leaders, especially in areas that host brick-and-mortar casinos. Local governments reportedly collected $545.6 million in 2025 under the current model. They have historically received a 2% to 4% share of monthly gross gaming revenue in exchange for hosting gaming developments.

Diamond estimates his restructuring plan would generate nearly $1 billion in additional revenue for the Property Tax Relief Fund. The report said about 2.87 million qualifying homeowners would have received a $702 property tax rebate if the model had been in place in 2025 alongside regulated skill games.

What Players and Businesses Should Watch Next

One major open question is timing. The Pennsylvania Supreme Court has ordered skill games to be turned off when its stay expires on Oct. 13, 2026, if legislation is not adopted before then.

For now, the bill has not yet been formally introduced. Details including bill text, potential co-sponsors, and broader industry response remain unclear.

Source: As reported by casino.org.

About the Author
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Tyler Andrews

Content Lead

Tyler Andrews is the Content Lead for all regional Catena Media sites, including PlayPennsylvania. Growing up in Las Vegas, he's watched the industry evolve tremendously over the last four decades. In his 4+ years with Catena Media, he's played and reviewed over 100 online casinos, sportsbooks, and social casinos. He's interviewed state and federal lawmakers, industry execs, gaming analysts, and players across the country. He's currently got over three dozen mobile gambling apps on his phone and–believe it or not–has not lost a single password.

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