A bill in the Pennsylvania Senate would legalize so-called “skill games” that now go unregulated and untaxed. A bill sponsored by state Senator Gene Yaw would create a regulation to centralize a monitoring and control system for the slot-like games, which are purported to use skill in the outcome of individual plays.
The bill also would create a tax structure to give the state a percentage of revenues for the games, which Yaw says can bring millions to state coffers.
“There’s obviously a demand for this type of entertainment,” Yaw said in a statement, according to The Center Square. “There’s a lot of these machines out there, somewhere between 20,000 to 70,000, and they’re not being taxed. Why not tax them?”
Yaw’s proposed legislation, as described in a legislative memo, “will regulate and establish an additional tax on skill video games in the Commonwealth.
“This bill will address both the need to clean up the market to rid us of illegal gambling, provide the state with tax revenue, and support small businesses by giving them access to an additional revenue stream,” Yaw wrote. “Skill video games, operated in a regulated environment, will significantly benefit the commonwealth by providing substantial revenue and creating jobs. All games will be required to be connected to a terminal collection and control system that allows the commonwealth to monitor all transactions and ensure that all taxes are accrued and paid.
“By taxing them, the state can probably generate in excess of $300 million a year in tax revenue. It’s like we have a winning way, or a winning lottery ticket, here – why not cash it in and take advantage of it?”
For years, Pennsylvania casino licensees have been joined by the American Gaming Association and the Association of Gaming Equipment Manufacturers in battling the spread of the so-called skill games, which are similar to slots but have one small element of thought that can boost the results. They have been viewed as illegal slot machines, not subject to the player protections that casino slot machines are, and available at locations such as pizza shops, gas stations and laundromats, where minors can access them.
On the other side of the argument are tavern owners who rake in profits from the game, and lawmakers like Yaw, who has been supported by skill-game suppliers who say they are willing to submit to regulation and taxation.
Skill-game manufacturer Pace-O-Matic, the Georgia-based producer of the “Pennsylvania Skill” branded games, has been a heavy lobbyer for a skill-game bill, but nothing has moved as yet. Pace-O-Matic has won two lawsuits over seizure of its games by regulators and state police.
