Lawmakers in Pennsylvania Target Skill Games for Regulation

Skill games are yet to pay taxes or undergo regulation in Pennsylvania. While the popular gambling devices can be found across the state, they are not considered illegal. This was the conclusion of the Commonwealth Court in 2023, which acknowledged that skill games, although not regulated are not illegal.

Last year, Pennsylvania lawmakers didn’t agree on a proposal for the regulation of skill games. However, both Republicans and Democrats are reportedly talking about legislation that would effectively regulate the machines. This is also what the governor wants, one senator revealed recently.

Skill Games Need to Be Regulated

Gov. Josh Shapiro proposed regulating skill games as a part of his FY 2024/2025 budget last year in February. The proposal called for a 42% tax on the gambling machines which would have generated more than $310 million in taxes by 2026. However, in the latest effort to regulate skill games, the proposed rate is significantly lower than the one previously discussed.

Last week, Democrats and Republicans published memos, confirming their intentions to regulate skill games. The proposed rate is 16%, which is lower than the previously discussed tax rate of 42%. Still, if lawmakers agree and implement regulation, the popular games will no longer operate in a legal gray market. This will help weed out bad actors and generate tax revenue at the same time.

State Rep. Justin Fleming, who was recently interviewed by Fox43, spoke about the importance of regulating skill games. “It can’t be the wild wild west. It’s got to be a regulated market,” he added.

Equally as vital is the enforcement of the regulation with Fleming adding that minors must be prohibited from using skill games. According to Fleming, an estimated $300 million may be generated from regulating the popular gambling machines. “We could pave a lot of roads, fix a lot of bridges,” the State Rep. added.

The Popular Skill Games Boost Small Businesses

According to State Sen. Patty Kim, Gov. Shapiro would support regulating skill games. “The governor would like it, Senate Republicans are for it. I think that’s something that we can get on the negotiating table and get it done this year,” she explained.

Despite the vocal support for potential legislation regarding skill games, the future of the popular gambling devices is still uncertain. Offering an activity similar to slot games but requiring skill such as memory or reaction, skill games can be found at gas stations, convenience stores, bars and restaurants, among other businesses across Pennsylvania.

The gambling machines provide extra revenue for small businesses. Still, considering that those machines are gambling devices, their future is either in regulation or prohibition. Judging by the latest efforts of lawmakers in Pennsylvania, regulating the devices would be more beneficial, for the owners of small businesses and the state as well.