Skill Games Bill Picks up Speed in Pennsylvania

Skill games are a popular form of entertainment that is considered different from traditional games of chance such as roulette, slots or blackjack. Real-money skill games continue to expand across the US, but many states have yet to regulate them. However, if there are no specific laws that prohibit them, those games are thus not illegal, which is why they expand to a number of different states. Pennsylvania is among the states that are currently exploring options for the regulation of skill games.

One such effort is led by Rep. Danilo Burgos, who is the prime sponsor of House Bill 2075, a bill that proposes the regulation of skill games. The bill was introduced back in September. Under the proposal, the Department of Revenue would be overseeing such activities.

Besides regulation, the Department of Revenue would be in charge of licensing operators that would offer skill games, as well as enforcing penalties in the event of breaches. Moreover, it would be in charge of taxing and zoning for such games. Recognized as distributors in House Bill 2075, skill game providers would be subject to a 16% tax on all gross profits.

Back in December, an important milestone for skill games was achieved in Pennsylvania. At the time, the Commonwealth Court recognized that skill games were legal, which paved the way for the regulation of the vertical.

The Proposal Gained Traction Last Week

Last month, Pennsylvania Gov. Josh Shapiro introduced his proposed budget for FY 2024/2025. In his budget, the Governor included expected proceeds from the taxation of skill games. This marked another signal toward the regulation of skill games. However, unlike House Bill 2075, Gov. Shapiro’s budget proposal estimated taxation of 42% on gross gaming revenue.

Rep. Burgos’ bill gained significant traction last week. His bill continued to make its way through the legislature in the state after it was referred to the House’s Gaming Oversight Committee where it will seek further approval.

Besides Pennsylvania, the regulation of skill games is picking up speed in Nebraska as well. In February, lawmakers in the state tabled a proposal that called for tighter rules for such machines. Under LB685, skill games machines would be subject to 5% tax on net profits, as well as a $100 fee per machine, applicable for distributors.