Pennsylvania Skill Game Developer Opposes Legislation’s High Tax Rate
Posted on: May 16, 2025, 11:04h.
Last updated on: May 19, 2025, 09:35h.
- Another bill to regulate skill games in Pennsylvania has been introduced
- Skill games are slot-like gaming machines that include elements of skill
- A player’s play can impact the payout rate
New legislation in Pennsylvania to legalize and tax controversial skill games was filed this week in the Harrisburg capital. The leading developer of the slot-like gaming terminals in the commonwealth immediately opposed the bill on claims that it seeks to implement too great a tax.
A group of five Senate Republicans filed Senate Bill 756, an act to amend Title 4 (Amusements) to create a regulatory framework for skill games. The legislation comes from Sens. Dan Laughlin (R-Erie), Rosemary Brown (R-Monroe), Joe Pittman (R-Indiana), Kim Ward (R-Westmoreland), and Chris Gebhard (R-Lancaster). Pittman is the majority floor leader.
SB756 would allow businesses possessing a liquor license from the Pennsylvania Liquor Control Board to house up to four skill gaming machines. Restaurants with alcohol privileges would be able to offer two machines. The legislation would additionally allow VGT truck stops to increase their number of the slot-like machines from five to seven.
Skill games are similar to slots but proponents of the machines say they don’t fall under the regulatory scope of the Gaming Act because their payout rates can instead be altered by a player’s skillset.
Skill Gaming Business Opposes Bill
Pace-O-Matic (POM), the Georgia-based company that developed the software of the popular Pennsylvania Skill cabinet, the most commonly found skill game in Pennsylvania, has long called for its products to be regulated and taxed. Miele Manufacturing, the Pennsylvania-based manufacturing firm that assembles the terminals, is also supportive of a legal framework.
Those companies, however, say the 35% proposed tax rate on gross skill gaming revenue suggested in SB756 is too high.
This bill falls woefully short,” opined Mike Barley, POM’s spokesperson. Barley said the bill as drafted would take critical money from small businesses that have used the supplemental income to keep people employed and offset higher costs.
POM and Miele support a tax rate of around 15%. Gov. Josh Shapiro (D), who is supportive of authorizing skill games through legislation, wants at least half of the skill game tax revenue.
The state’s highly taxed casinos, which paid tens of millions of dollars to the state for slots licenses, oppose skill games on the claim that the unregulated and untaxed terminals poach play from their businesses. Casino slots are subject to a gross gaming revenue tax ranging from 48% to 54%.
Regulation Imminent
A senior legal official in the Republican Party, speaking on the condition of anonymity, tells Casino.org that the forthcoming legalization and taxation of skill games is a safe bet.
Shapiro continues to seek new funding to pay for his higher education and infrastructure spending, and the state not receiving a dime from the estimated 67K skill games operating in the commonwealth will not continue. Laughlin agrees.
These skill games are literally everywhere. They’re taking quite a bite out of the pockets of both our consumers and our casino businesses,” Laughlin said. “Skill games are undercutting our gaming industry. I’m committed to finding a fair, enforceable solution that levels the playing field.”
SB756 joins Senate Bill 626 in seeking to regulate and tax skill games. SB626, however, proposes a considerably lower effective skill gaming tax at 16%.
Last Comments ( 1 )
Why not just legalize slot machines in bars, restaurants, and truck stops instead of the pretend "skill" games. Plus one flat tax rate for all competitrs to level the playing field.