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The next Pennsylvania budget doesn’t contain provisions for taxes and regulations on Pennsylvania skill games in the Commonwealth. Instead, lawmakers on both sides of the aisle came together in Harrisburg to solve an impasse on the 2025-26 budget.
Taxing and regulating skill games have been on Gov. Josh Shapiro‘s agenda over the last two years. Back in February, he proposed the machines be taxed at a 52% rate.
That did not happen for this budget. However, there are plenty of lawmakers who are trying to regulate the games.
Also, the Supreme Court intends to rule on the legality of the machines later this month, too.
Regulation still on the table
The governor admitted that neither side received everything it wanted in the budget compromise. And also skill games remain in play.
Gov. Shapiro told ABC News 27:
“We’ve got some unfinished business. But importantly, and without sort of revealing the confidences of our conversations around the negotiating table, I think we have, actually, a better understanding of where we are on those issues.”
Lawmakers have tried to beef up gaming regulations in the state, who also has retail casinos, PA online casinos, PA sports betting, lottery and video game terminals.
Senate Bill 1079 is one of the latest pieces of legislation to be introduced, which would establish fees on skill games, generating as much as $300 million in annual tax revenue.
There are lawmakers in favor of regulating skill games. Here are other bills that have been introduced into legislation:
- 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
Critics of skill games have argued the machines are too permissive and unregulated, leading to illegal gaming.
Supreme Court to hear arguments on skills games on Nov. 20
A definitive ruling on skills games may be coming soon. The Supreme Court of Pennsylvania will hear arguments on the topic beginning Nov. 20, and ultimately decide the legality of skill games across the Commonwealth.
Skill games operators argue the legality has already been affirmed by the Commonwealth Court, which ruled them as legal in 2023. But, such games are not specifically regulated nor are they taxed in the state, and critics either want them banned or regulated and taxed.
Budget deal adds $900 million in education funding
The 2025-26 Pennsylvania budget agreement is better late than never. It calls for $50.1 billion in spending, and maintains $8 billion in the “rainy day fund” for state special or emergency efforts.
According to Shapiro’s office, the budget provides $900 million additional funding for public education. It delivers nearly $200 million in tax relief “for working families,” according to the press release from the governor.
There are also important funding approvals, including $5 million for PA’s Alzheimer’s Disease Division at the Department of Aging, and much more.
According to the official press release on the signing of the budget, Shapiro’s action shows that his administration is “tackling Pennsylvania’s most pressing challenges, and continuing to fuel the Commonwealth’s rise.” He added:
“In a divided legislature, we proved once again that Democrats and Republicans can come together to get stuff done for the good people of Pennsylvania — cutting taxes, investing in education and workforce development, supporting law enforcement and reducing crime, and keeping our economy growing,” Shapiro said in his official statement on the budget agreement.”
