The deadline for agreement on Pennsylvania skill games regulation is June 30, and lawmakers remain far apart on key issues, which is making regulation less and less likely this year.
The tax rate on skill games has remained the most significant stumbling block.
Lawmakers and politicians have wildly different ideas on how to tax and regulate the machines.
Where there’s agreement
Pennsylvania lawmakers and politicians are in agreement that skill games can generate significant amounts of revenue for the commonwealth. And they all agree that they need to act after the Commonwealth Court ruled the games legal in December 2023.
The Republican leader of the Pennsylvania Senate, Sen. Joe Pittman, told WENY News that a viable solution must be found.
“We recognize that these have become an income source for small businesses, and we don’t want to take that from those legitimate organizations.”
Most lawmakers are also in agreement that an age limit should be imposed, as well as a limit on machines per establishment. It’s mainly the tax issue that continues to stymie the legislation. along with which government agency will regulate skill games in the state.
Where there’s opposition
A 50% tax rate on the machines was proposed by Sen. Frank Farry in past sessions, which almost reaches the 52% Gov. Josh Shapiro is proposing. Both Farry and Shapiro want the Pennsylvania Gaming Control Board to provide oversight.
On the opposite end of the spectrum, Sen. Gene Yaw introduced legislation that calls for a tax rate of 16%, with the Department of Revenue overseeing the games.
“With over-regulation, and higher tax rate, and the wrong department to administer the law – the net result is going to be the industry world will cease to exist in Pennsylvania.”
Senator Chris Gebhard proposed a 35% tax, a middle-ground solution of sorts.
Finally, there’s the measure introduced by Rep. Kerry Benninghoff last week. It proposes no new tax on skill games.
With one week to go, it’s hard to be optimistic that skill games regulation will happen in 2025.
