Pittsburgh Councilman Anthony Coghill has introduced legislation to tax skill games in Pennsylvania’s second-largest city.
Skill games have become a controversial topic throughout the state, with the regulated gaming industry arguing the machines compete with Pennsylvania retail casinos.
Coghill is attempting to help close Pittsburgh’s budget deficit after the city faced financial shortfalls last year. He is now one of several lawmakers and local officials proposing tax and regulatory frameworks for skill games, which are commonly found in bars, restaurants, social clubs, and small businesses.
Eyeing $1,000 tax per machine
Lawmakers have come up with several tax structures for skill games. Some include flat rates, while others suggest fees for machines.
Coghill is proposing a $1,000 fee per year for each skill games machine operating in Pittsburgh.
According to WTAE, discussions are still ongoing before the fee structure becomes final. The city is facing a $20 million deficit in the first quarter of 2026. Taxing skill games could generate $2 to $3 million annually.
In addition to skill games, Coghill also wants to tax other amusement devices on an annual basis. His proposal includes a $10 fee for dart boards and bowling machines, along with a $100 fee for claw machines.
Other skill games proposals
Coghill noted that there could be amendments with his tax structure. Meanwhile, multiple statewide bills have already been introduced with differing regulatory frameworks, including:
- Sen. Gene Yaw: Introduced SB 626, which enacts a 16% tax on the machines
- Sen. Gene Yaw: Introduced SB 1079, establishing fees
- 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
- Rep. Danilo Burgos: Introduced HB 2046, establishing fees and cutting taxes for Category 4 mini-casinos
- A second proposal from Burgos that would impose a $500 monthly fee per terminal and cap the number of machines statewide at 50,000
Even if the state passes one of the proposed skill games bills, Coghill’s proposal would still allow Pittsburgh to impose its own $1,000 annual fee on machines operating within city limits, with the revenue going toward the city’s budget deficit.