The chances of Pennsylvania regulating skill games are looking up as another lawmaker publicly endorsed the idea earlier this week. Representative Kerry Benninghoff, House District 171, wrote a memo stating that he plans to introduce legislation to tax and regulate the machines in the Keystone State.
Many Pennsylvania lawmakers are in favor of regulating rather than banning skill games, and Gov. Josh Shapiro is in that camp as well. Currently, the games operate in a legal gray area, though Pennsylvania courts consider the games not to be “gambling,” following a Commonwealth Court ruling back in December 2023.
Benninghoff is the latest politician coming forward on regulation. In his memo, he lists some intriguing stipulations he intends to introduce.
Benninghoff to ‘grandfather’ in existing skill games
Once regulated and taxed, skill games could bring in hundreds of millions of dollars to the Commonwealth. That is a major reason why so many politicians are in favor of regulation.
Skill games manufacturers and certain lawmakers believe that the machines serve as supplemental income for small businesses. Benninghoff is in that camp, as he will not introduce an “additional burdensome ‘special'” tax on certain establishments. He added in his memo:
“My legislation will grandfather all existing legal skill game terminals currently operating in the commonwealth. A deadline to register these devices will be established.
“Once that deadline has passed, limits on the type of establishments and the numbers of terminals per location will be imposed.”
Benninghoff is promising safeguards for the industry to continue to move forward. He said:
“This bill will implement regulations, tracking of terminal locations, and establish guardrails for operation, protections to eliminate underage gaming, and tools for law enforcement to better help distinguish between legal skill games and illegal gambling devices.”
The lawmaker did not include specifics on a tax percentage, neither the limit of games an establishment can offer.
Skill games regulation picking up momentum
It’s becoming likely that skill machines are going to be regulated at some point. The effort has the backing of several legislators.
Gov. Shapiro proposed a 52% tax of the games in his 2025 budget address in February. However, that is extremely far off from the 16% tax Senator Gene Yaw and Representative Danilo Burgos plan on introducing in memos they have written.
Other politicians, Senate President Pro Tempore Kim Ward and Senate Majority Leader Joe Pittman, also support skill games regulation. However, neither presented a tax structure.
Lawmakers would need to come to an agreement before July, when the new fiscal year starts, to earn the amount of tax revenue Gov. Shapiro budgeted.
It also should be noted that the Pennsylvania Supreme Court is slated to rule on the legality of the machines at some point. That has been under the radar, with momentum picking up for regulation.
While it appears likely skill games head towards regulation, a ban from the highest court would make everything else moot.
