Pennsylvania Lawmakers Propose New Regulatory Framework For Skill Games
New legislation would bring skill game machines into Pennsylvania’s regulated gambling market while directing additional revenue towards property tax relief.
Pennsylvania lawmakers are preparing legislation to regulate skill game machines following a state Supreme Court ruling that determined the terminals constitute gambling.
The proposals come ahead of an October 13 deadline following the court decision, which means the machines cannot continue operating under the existing framework. Skill games have existed in a legal grey area in Pennsylvania for around 12 years, but could become illegal without legislative action.
Diamond Proposes 20% Skill Game Tax
Republican Representative Russ Diamond of Lebanon County is preparing legislation that would permit regulated skill games at clubs, liquor-licensed restaurants and bars, as well as qualifying truck stops.
Under the proposal, eligible locations would be permitted to operate a maximum of five machines, with skill game revenue taxed at 20%. The legislation would simultaneously reduce the tax rate applied to casino slot machines and online casino gaming to 49.9%.
Diamond said the changes would modernise Pennsylvania's approach to the machines while ensuring that additional gambling revenue provides a direct benefit to residents.
“It’s time to modernise our approach, bring skill games into a regulated system ahead of the state Supreme Court’s October 13th deadline, and make sure Pennsylvania homeowners see a greater benefit from the revenue generated by gaming,” Diamond said.
Gambling Revenue To Support Property Tax Relief
Diamond estimates that almost 2.87 million Pennsylvania residents could potentially benefit from property tax relief under the proposed framework.
The legislation would establish an annual gaming dividend for eligible homeowners, with the amount increasing alongside revenue generated by legal gambling. According to the proposal, the scheme could ultimately expand property tax relief to as many as 96% of homeowners in the state.
Revenue would also continue to support other programmes, including the Race Horse Development Trust Fund, compulsive gambling treatment and Pennsylvania's General Fund.
October Deadline Increases Pressure On Lawmakers
The proposals follow the Pennsylvania Supreme Court's ruling that skill game terminals constitute gambling, bringing renewed urgency to a long-running debate over how the machines should be treated under state law.
With the existing framework no longer considered sufficient for their continued operation, lawmakers now face an October 13 deadline to establish a new regulatory approach.
The proposed legislation would seek to resolve that uncertainty by formally incorporating skill games into Pennsylvania's regulated gambling system, introducing taxation and restrictions on where and how many machines can operate while using a proportion of the resulting revenue to increase property tax relief.
