Pennsylvania Senator Gene Yaw (R-23) wrote a memo last week expressing his intent to bring a skill games regulation bill to the Senate. Yaw introduced one such bill during the 2023-24 session but failed to pass it on that first attempt.
Yaw’s memo follows a similar document from Representative Danilo Burgos last month, discussing bringing a bill to the House. Like Yaw, Burgos introduced a skill games regulation bill in 2023. That also expired at the end of the 2024 session without passing.
Yaw and Burgos once again appear to be in lockstep to start 2025. That sort of bicameral effort will be important to the bill’s chances of success, giving both halves of the legislature plenty of time to consider the proposal. Legislation has not been formally introduced yet; however, it should be sooner rather than later. Pennsylvania’s legislative session begins tomorrow, Jan. 7.
Yaw advocates for skill games regulation
Like Burgos, Yaw’s memo last week outlined his stance on regulated skill games in Pennsylvania. Yaw did not disclose details of a framework for his 2025 bill, but he believes the legislation could generate around $300 million in annual tax revenue.
Pace-O-Matic (POM), a Georgia-based skill games manufacturer, produces many of its machines in Williamsport, Pennsylvania. That happens to be Yaw’s district, and Pace-o-Matic has created hundreds of jobs in the area.
In addition, Yaw believes his bill will help weed out illegal gambling in Pennsylvania. In his memo, he wrote:
“Additionally, my legislation will strengthen penalties for those who operate unlicensed and illegal games and gambling devices. These illegal gambling devices’ negative impacts include but are not limited to the non-payment of local, state, or federal taxes, criminal activity, nuisance, and an increased strain on local and state law enforcement resources.
“When so many small businesses, including bars, restaurants, and fraternal and veterans clubs are struggling due to the economic strain caused by the higher costs of goods and labor, skill video games are keeping them afloat by providing them with supplemental revenue.”
Yaw proposed a 16% tax on skill machines in 2024. Though details have not been finalized, it’s likely to remain the same for a 2025 bill.
Burgos and Yaw appear to be on the same page
Both parties submitted their memos detailing their plans for the bill within weeks of each other. Burgos did so in mid-December, while Yaw did so just last week.
That shows more coordination than last year’s effort. In the 2023-24 legislative season, the two chambers saw their bills introduced at different times and much later in the year. Yaw brought his on board first in May 2023, while Burgos waited until September 2023. Neither bill moved after being introduced.
With the 2025-26 session about to start, Yaw and Burgos are wasting no time gathering co-sponsors for each bill.
It remains to be seen the amount of sponsors Yaw and Burgos can recruit. Last year, Yaw had eight co-sponsors on his bill, while Burgos got 19.
A lot needs to be sorted out before skill games can be taxed. The Pennsylvania Supreme Court is ruling on the legality of the machines at some point this year. Depending on the ruling, regulation could be moot.
Should the games remain legal, it’ll be important for Yaw and Burgos to gain momentum and push both bills. Then, working with Gov. Josh Shapiro will become equally important, as he proposed a 42% tax in his FY 2024/2025 budget address last February.
