Oil City’s City Council has voted on a proposed ordinance to tax business owners that are supplying Pennsylvania skill games. The first step of the ordinance was completed last Friday.
Providers of skill games would be taxed $500 for the first machine, and then $200 for each one after. The money raised from the tax would be used for the operation and maintenance of the municipal pools.
Pennsylvania skill games have been a controversial topic in the Keystone State. The regulated industry believes that the machines take away business from retail and PA online casinos.
Other townships in the state have imposed similar taxes, or have issued zoning ordinances, which limits skill games to certain areas.
Slight pushback with Oil City’s skill games ordinance
City Manager Mark Schroyer told PlayPennsylvania on Monday that the city’s ordinance is not meant to limit skill games in any way. It’s going to serve as supplemental revenue for the town’s swimming pools.
Council member Ron Gustafson represented the only vote against the ordinance. He felt that the tax of $500 was too high for business owners, according to The Derrick, and that patrons could possibly go to Cranberry Township to game, which is four miles from Oil City. He said:
“We want to be a business-friendly city, that is why it is giving me qualms.”
The money from taxing skill games is expected to raise between $5,000 and $10,000 for Oil City.
For the ordinance to pass, it’ll go through another reading and vote on Nov. 7. The third and final vote would take place at the subsequent meeting.
Ordinances involving PA skill games is nothing new
There have been multiple ordinances issued over the last several months that have impacted skill games within the state. Jefferson County implemented similar measures in a meeting last month. Borough Manager, Dana D. Rooney, CBO, told PlayPennsylvania that the goal was not to limit machines.
“We have had a significant number of games of skill enter our borough in recent months. We are looking to get the machines registered to better track their locations.”
Jefferson County is also taxing business owners $500 for each machine that is supplied.
The city of Meadville, on the other hand, voted into effect an ordinance that limits skill games to just three separate areas in the township. Business owners with machines would need to apply for zoning approval in the following shaded areas:
Philadelphia Mayor Cherelle Parker banned skill games last April in city gas stations and corner stores due to concerns of public safety.
PA skill games head to Supreme Court
Skill machines are currently legal as the Commonwealth Court ruled them as so last December. However, the legality of the games are now in the hands of the Pennsylvania Supreme Court.
PlayPennsylvania broke the news back in June about the decision resting in the state’s highest court. It was in contrast to the Commonwealth Court’s ruling roughly six months earlier.
Pennsylvania casinos have been fighting to tax the machines, if not ban them altogether. Twelve properties even filed a complaint to the Supreme Court, arguing that taxes on slot machines are unconstitutional because of the lack of oversight for skill games.
Pace-O-Matic (POM), a Georgia-based skill games manufacturer, told PlayPennsylvania in June about the upcoming court battle.
“We remain confident in the merits of our case, as their legality has been upheld unanimously by the Commonwealth Court as well as in every court where the legality of our games has been challenged.
“Our attorneys will continue to defend the legality of our skill games, which support local small businesses and fraternal clubs across the Commonwealth.”
There is no timetable for the Supreme Court to hear the case on skill games. As of now, the machines are continuing to operate in a gray area.