State Representative Ben Waxman (D-Philadelphia) has proposed the Skill Game Consumer Protection Act aimed at regulating Pennsylvania’s largely unregulated skill-game industry.
This legislation arises amid increasing scrutiny of the sector. On April 8, Attorney General Dave Sunday declared a $5 million forfeiture along with the closure of two gaming companies that pleaded guilty to felony charges of operating a corrupt organization.
Officials indicated that these businesses were running illegal slot machines disguised as skill games, leading to rising demands for enhanced regulations.
Waxman’s initiative seeks to bridge the divide between Pennsylvania’s regulated gambling establishments and roughly 70,000 skill-game machines scattered throughout bars, restaurants, and retail locations in the state.
“If skill games are to be regulated, they need to be structured to mitigate potential harm,” Waxman stated to PlayUSA. “Currently, they pose an elevated risk to vulnerable groups due to their accessibility and rapid gameplay.”
The legislation would mandate centralized oversight through the Pennsylvania Gaming Control Board via a required tracking system, while also enforcing casino-like safeguards such as play-speed restrictions, obligatory breaks, and limits on daily losses.
Additionally, it would enhance the state’s gambling self-exclusion program to encompass all skill-game terminals and prohibit their operation in gas stations and convenience stores.
Moreover, this proposition accompanies Governor Josh Shapiro’s bid for a 52% tax on skill games in his budget for 2026–27, aligning it with the taxation rate for casino slot machines. Authorities estimate this effort could generate approximately $766 million annually for education and social services.
There are alternative bills being reviewed that propose varying methods of taxing skill games. For instance, SB 626 by Senator Gene Yaw suggests a reduced 16% tax rate designed to support small businesses. In contrast, SB 756 by Senator Chris Gebhard proposes a 35% tax rate as a compromise to generate revenue. Meanwhile, HB 2046 by Representative Danilo Burgos aims to impose operator fees while lowering taxes on Category 4 “mini-casinos.”
The Pennsylvania Supreme Court is anticipated to render a decision this spring on whether skill-game machines are categorized as illegal gambling or legitimate skill-based games.
Should the court find the machines to be illegal, Waxman’s legislation could offer a route for their legalization under strict consumer protection and transparency protocols aligned with the state’s current casino regulations.