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A rally at the Hershey Italian Lodge on Wednesday involved around 100 people that support fair skill games taxation and regulation.
Skill games have been a controversial topic in Pennsylvania. While they’re currently legal, they’re not regulated by the state. Those in the legal gambling industry believe that skill games pose a threat to retail, PA online casinos and sports betting platforms.
Many small businesses in Pennsylvania contend that they can’t lose the extra revenue skill games provide.
Small business owners speak out
During the rally, owners of small businesses admitted that they rely on skill games for different reasons. A representative from House of Pizza in Lancaster told WGAL8:
“From the income we received from the game of skills, we use it for a lot of different things. We’re able to pay our employees overtime a little more.
“You know, No. 2, we do use it to keep our cost, the cost of food down, and we pass it on to our customers. Our customers can get a good meal at a fair price.”
The Pennsylvania Supreme Court is expected to rule on the legality of the machines in the near future. However, there’s no timetable in sight.
Small businesses want skill games to be fairly regulated and specifically legalized. The representative from House of Pizza said legalization would “maintain that additional income” for its store.
Bills and memos floating about
There are already multiple bills introduced and memos that have been written in support of skill games regulation. Even Gov. Josh Shapiro has voiced his support, albeit at a hefty tax rate.
Here are some bills introduced and the governor’s proposal:
- Gov. Josh Shapiro: Calls for a 52% tax on skill games
- Sen. Gene Yaw: Introduced SB 626, which enacts a 16% tax on the machines
- Sen. Chris Gebhard: Introduced SB 756, which includes a 35% tax on the machines
- Rep. Kerry Benninghoff: Introduced HB 1619, which would place no additional tax on the games
Willie Shay, owner of Shay’s Vending, a fourth-generation business in Lebanon County, spoke to WHTM about high tax rates:
“We think that would be devastating to our industry. We think we’d be overtaxed and overregulated, and it would kill our nonprofits and our small businesses.
“We’re trying to get something done before the budget’s done. We’d love to be a part of it, but we want a fair tax, and we want fair regulations. And we’re going to do everything we can to keep fighting for that.”
Yaw has plans to introduce another bill that establishes a monthly fee for obtaining skill games. He did not mention a tax rate in his memo.
Rep. Robert Leadbeter wrote a memo that would put skill games into Pennsylvania casinos, with revenue benefitting school choice programs.
WHTM reported that people at the rally supported a tax rate between 15% and 20%. Yaw’s first bill falls at 16%, which would satisfy most small business owners.
