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Pennsylvania state Sen. Gene Yaw said he plans to introduce another bill that would regulate and tax skill games, one that includes a monthly fee. He said he plans to do so with fellow Sen. Anthony Williams.
Yaw introduced a skill games bill in April with a 16% tax, which he said would help keep small businesses and veterans’ organizations in operation.
The bill he’s proposing now has some key differences to his previous legislation.
New plan includes monthly fee
Yaw has not formally introduced a second bill. However, according to a written memo, Yaw and Williams “plan to introduce comprehensive legislation” for skill games regulation “in the near future.”
Yaw believes skill games are not gambling because the outcomes on the machines are not determined by chance. The Commonwealth Court upheld that argument in December 2023, which invariably made skill games legal.
In his memo on the new bill, Yaw did not say what the tax rate would be on skill games. However, he did mention a monthly fee.
“Our legislation will establish a $500 monthly fee per skill game terminal and limit the total number of skill game terminals to 50,000 statewide. These monthly fees will generate $300 million annually for the commonwealth.
“In addition, this legislation will enable local governments to promulgate rules with respect to health and safety standards governing establishments where skill games are located.”
In the memo, Yaw is asking for bipartisan co-sponsorship of the bill.
Yaw’s previous bill does not include monthly fee
It appears that Yaw is taking a different approach on skill games regulation.
In Senate Bill 626, Yaw called for a 16% tax on the machines. The bill gave sole regulatory authority to the Pennsylvania Department of Revenue and placed the Bureau of Liquor Control Enforcement in charge of enforcement.
Yaw’s previous legislation included application and renewal fees for distributors, operators, and system establishments but did not call for monthly fees.
He expected that SB 626 would raise $300 million in tax revenue annually for the state, which is the same amount he anticipates for his upcoming bill with Williams.
SB 626 has not moved since Yaw introduced it. Perhaps a new bill with a different strategy will move the needle on skill games regulation.
