A bill has been proposed by a Pennsylvania state lawmaker to legalize and regulate skill games before the court-imposed deadline that would make the machines illegal across the commonwealth.

Representative Russ Diamond (R-Lebanon) announced on Tuesday that the proposal aims to amend Pennsylvania’s Gaming Act to bring skill games under state regulation and taxation. He believes that this measure could generate nearly $1 billion in additional property tax relief for homeowners.

Diamond stated, “Pennsylvania’s gaming law was originally written for a much different era. It’s time to modernize our approach, bring skill games into a regulated system ahead of the state Supreme Court’s October 13th deadline and ensure that Pennsylvania homeowners benefit from the revenue generated by gaming.”

Skill games are video-based gambling machines that allow players to bet on game outcomes for a chance to win jackpots. Supporters argue that these games involve a skill component that gives players a chance to win back their wagers. However, many players choose to continue betting for a chance at bigger payouts.

Critics have raised concerns about the predatory nature of these machines, their potential to expose children to gambling, and their contribution to crime in communities where they are widely available.

The Pennsylvania Supreme Court ruled in June that skill games are subject to the state’s gambling laws, overturning lower court decisions that had previously excluded the machines from regulation under the Gaming Act and Crimes Code.

Skill games have been operating in Pennsylvania for over a decade in a legal grey area and have become common in various establishments such as convenience stores, restaurants, gas stations, private clubs, and dedicated skill game parlors.

To address the tax rate disagreements that hindered previous legislative efforts, Representative Diamond’s proposal suggests a 20% tax rate for skill games. The maximum number of machines allowed would be five at clubs, restaurants, bars holding liquor licenses, and qualified truck stops. Additionally, the proposal would lower the tax rate on casino slot machines and online casino games to 49.9%.

The legislative package also includes provisions for distributing property tax relief, funding for the Race Horse Development Trust Fund, increased funding for gambling addiction treatment, and generating revenue for Pennsylvania’s General Fund. Diamond also proposed replacing the current property tax relief mechanism with direct “gaming dividend” payments to the state’s 2.87 million qualified homeowners.



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