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Pennsylvania Sen. Gene Yaw (R-23) believes a high tax on skill games would hurt small business. He continues to back his own bill, which taxes the machines at 16%.
Yaw introduced skill games legislation in April with the intention of supplementing income for Veterans of Foreign Wars, American Legions, and small businesses.
Skill games have been heavily criticized by the retail and online casino industry in Pennsylvania. However, it’s becoming more likely the machines will be taxed, not banned.
Yaw says low tax rate crucial
Lawmakers are far apart on how to actually tax skill games in Pennsylvania. Gov. Josh Shapiro proposed a 52% tax in his 2025 budget address in February. Sen. Chris Gebhard’s bill calls for a 35% rate.
Yaw recently wrote an opinion piece for The Bradford Era that warned against a high tax rate on skill games.
“Hundreds of small businesses, manufacturers, operators, and distributors make up the supply chain. If nearly all the revenue is taken through taxes, there will be nothing left for those businesses to survive. The projected windfall in tax revenue will never materialize because the industry itself will disappear.
“For more than a century, the warning has rung true: the power to tax is the power to destroy. The other leading Senate proposal is a dangerous example.”
Senator says other bills could kill skill games
Yaw also said other bills overregulate skill games and “misclassify” the machines as gambling devices. The Commonwealth Court ruled in December 2023 that machines are legal in Pennsylvania because they require skill to win.
Yaw also opposes the Pennsylvania Gaming Control Board overseeing skill games. His legislation puts the Department of Revenue in charge of regulation.
Yaw offered a final message in his piece:
“Ignoring court rulings, overburdening small businesses, and handing control over to a biased regulator is not responsible governance. It is a coordinated effort to kill an industry that helps veterans’ posts keep their doors open and allows small businesses to survive.
“If the goal is killing skill, this is certainly the way. But make no mistake, Pennsylvania communities will pay the price.”
Yaw also introduced legislation to legalize skill games in the 2023-24 session, but it was unsuccessful.
