Representative Danilo Burgos introduced a bill earlier this year that aimed to tax Pennsylvania skill games. Ultimately, that did not happen. However, the lawmaker issued a memo that would re-introduce another bill in 2025 to regulate the machines across the Commonwealth.
Burgos’ House Bill 2075 moved into the Gaming Oversight Committee in February, where it stayed for the rest of the year. It’s clear Burgos has his sights set on the games being regulated and taxed in the Keystone State.
According to the memo, Burgos has a similar structure in place for a 2025 bill, which is expected to be introduced in the near future.
New bill, same plan for Burgos’ skill machines regulation
A document has not been formally submitted for introduction, according to the Pennsylvania House of Representatives site. However, it should be coming soon.
Burgos penned a memo earlier this month, which discussed the “new life” skill machines has given small business across the Keystone State. He laid out his plan in the memo, stating:
“My legislation would levy a 16% tax on skill video game machines, which would bring in close to $300 million in revenue in the first year. The bill would also put skill games under the Department of Revenue’s oversight.
“By doing so, it would create more stringent regulations and require testing, registration, enforcement, and accountability. Further, it would mandate the number of games allowed per location, to prevent mini casino-like environments in family establishments.
“As they stand now, skill game operators and their machines do not provide any consumer protection, which puts the most vulnerable populations in harm’s way.”
In Burgos’ HB 2075, much of the same language was used, including the tax on skill machines and the revenue it would generate.
Skill games regulation has support on Senate side, too
Pennsylvania Senator Gene Yaw’s (R-23) has a similar philosophy to Burgos in relation to skill games. Yaw has not written a memo of his own, yet. However, the Pittsburgh Post-Gazette said that Yaw’s chief of staff, Nick Troutman, believes the senator will re-introduce his skill games bill.
Yaw had virtually the same tax structure as Burgos in his bill. He proposed a 16% tax on the machines, which would generate around $300 million in the first year. The games would also be under the jurisdiction of the Department of Revenue.
The casino industry has opposed skill games from the start, claiming they are too similar to slots and too many in the state. Yaw told PlayPennsylvania earlier this year:
“One of the issues are the complaints from casinos that there are too many of these games out there. If there’s too many of them, our legislation will actually cut down the number and regulate them. It’s exactly what [casinos] say needs to be done. So the casino industry should be supporting this legislation, not opposing it.”
Gov. Josh Shapiro is also in favor of taxing the games. In his FY 2024/2025 budget, he proposed a 42% tax, which was ultimately taken out altogether.
Shapiro is expected to address the state again in his 2025/2026 budget address. It remains to be seen if Shapiro will budget for skill games because of the upcoming Pennsylvania Supreme Court ruling on the legality of the machines.
There’s a lot that needs to be happen before skill games are taxed and regulated in the Keystone State.
