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Pittsburgh City Council has approved legislation creating an annual fee for Pennsylvania skill games, but whether the city will ever collect that revenue now depends on what happens over the next few months.
Council voted unanimously on June 24 to approve the measure, which would require businesses to obtain licenses for skill games and pay annual fees based on the type of machine.
The proposal comes just weeks after the Pennsylvania Supreme Court ruled that skill games are slot machines, giving lawmakers 120 days to establish a regulatory framework or allow the machines to become subject to existing gambling laws.
Councilman Anthony Coghill, who introduced the legislation last month, said the city hopes its tax could be grandfathered in if it is approved before the state enacts its own regulations. However, that outcome remains uncertain.
What Pittsburgh’s tax would do
Under the ordinance, businesses operating skill games such as poker machines, video slot-style machines and video sweepstakes terminals would pay an annual fee of $1,000 per machine.
Other amusement devices would face lower fees, ranging from $100 annually for prize machines to $10 annually for traditional amusement devices such as pool tables, pinball machines and jukeboxes.
Council also approved an amendment capping fees for amusement arcades, limiting taxes to their first 10 devices.
Coghill has estimated the proposal could generate between $2 million and $3 million annually, providing a new revenue source after Pittsburgh raised property taxes by 20% earlier this year to address budget challenges.
Not every member of council is comfortable with skill games sticking around, even with a new tax in place. Councilman Bob Charland supported the measure but said he’d rather see the machines banned outright, likening them to vape shops that recently faced new restrictions. Charland told the Mon Valley Independent:
“I really think these skill games are a pox on our neighborhoods.”
Where Pennsylvania’s skill games debate stands
While Pittsburgh has now acted locally, the future of skill games remains a statewide issue.
Earlier this month, the Pennsylvania Supreme Court overturned years of lower-court decisions by ruling that skill games fall under both the Pennsylvania Gaming Act and Crimes Code.
Multiple proposals remain under consideration, while Gov. Josh Shapiro has proposed regulating the industry through the Pennsylvania Gaming Control Board with a 52% tax rate.
Meanwhile, Pace-O-Matic, the Georgia-based manufacturer behind many of Pennsylvania’s skill games, continues to push for legislation that would allow the machines to remain in operation while protecting the thousands of small businesses and veterans organizations that rely on the supplemental income.
On the other hand, the regulated industry believes that skill games take business away from Pennsylvania retail casinos and Pennsylvania online casinos. Parx Casino CEO Eric Hausler wants skill games on the same playing field as slot machines, which are taxed at 54%.
Until lawmakers act, Pittsburgh’s new tax remains largely a placeholder, with its future depending on whether Pennsylvania’s final regulatory framework allows municipalities to impose their own taxes.
