The legislation seeks to impose a 35% tax on revenue generated from skill game machines
Pennsylvania lawmakers now consider Senate Bill 756, a broad plan to regulate and tax skill games. These gambling machines have operated in a murky legal space throughout the state for almost ten years.
Senate Bill Targets Skill Games with High Tax and Strict Oversight
The bill, backed by Senator Chris Gebhard and supported by Senate leaders Kim Ward, Joe Pittman, and Rosemary Brown, aims to put a 35% tax on money made from skill game terminals. The proposed law also calls for licensing rules, allows only businesses with liquor licenses or Pennsylvania Lottery ticket sales to have these machines, and sets a limit of seven machines per place. The bill also says players must be at least 21 years old.
The Pennsylvania Gaming Control Board would oversee the industry, deciding where to place machines legally and making sure everyone follows the rules. The 183-page plan lays out license fees, from $250 for a business to $50,000 for manufacturers. A new Skill Gaming Fund would send tax money to the state’s General Fund and programs to help people with gambling problems.
Senator Gebhard called the bill a well-planned answer that would make the skill games industry legal and bring in tax money for the state, reported YourErie.com.
Skill Game Bill Faces Backlash from POM Over Impact on Small Businesses and Community Groups
However, the bill has sparked a lot of pushback from important groups Pace-O-Matic (POM), a company based in Georgia. POM says the plan would put too much pressure on small businesses and community groups, making it hard for them to stay afloat.
Mike Barley, Chief Public Affairs Officer at POM, warned that the high tax rate would hurt groups like American Legions, VFWs, and local fire departments that rely on skill game money to cover rising costs and falling donations. Barley argued that these funds play a crucial role in community services and regular fundraising cannot replace them.
POM backs a different bill from Senator Gene Yaw, which suggests a 16% tax and oversight by the Department of Revenue. This plan, they claim, creates a better balance between state interests and the financial challenges local operators face.
Dan Laughlin, a senator who supports regulation, recognized how skill game money helps local businesses. However, he stressed the need to control the spread of what he called “mini-casinos” in everyday places like gas stations and laundromats.
As talks go on, no one knows for sure what will happen to skill games in Pennsylvania. Lawmakers are trying to balance the good of tax money against the jobs of small business owners and community groups across the state.
