Posted on: October 9, 2023, 12:27h.
Last updated on: October 9, 2023, 12:27h.
The US casino lobby recently testified against the legalization and regulation of “skill games” in Pennsylvania. The lobby argues that these games, resembling slot machines, are designed to circumvent state gaming laws.
Skill games have players manually identifying a winning payline, distinguishing them from traditional slot machines. Proponents argue that these games, commonly known as “Pennsylvania Skill,” were crucial for small businesses during the pandemic and helped offset inflation.
Pace-O-Matic (POM), the Georgia-based gaming developer that produces “Pennsylvania Skill” terminals, supports the regulation and taxation of these games. However, critics claim that unregulated skill games threaten the state’s regulated casino industry.
Casino Lobby Opposes Skill Games
Certain lawmakers in Pennsylvania are seeking to regulate and tax skill games through Senate Bill 706. The proposed legislation would limit the number of skill games in businesses like restaurants and stores and impose a 16% state tax on their earnings.
However, opponents argue that SB 706 fails to adequately protect consumers and favors the commercial casino industry, which already faces high licensing fees and taxes. The Pennsylvania Senate Community, Economic, and Recreational Development Committee heard testimony from industry representatives who warned of the economic risks associated with the proliferation of skill gaming.
Eric Schippers, senior vice president of Penn Entertainment, expressed concern over the impact of skill gaming on the state’s gaming tax revenue and emphasized how convenience and accessibility make these games direct competitors to casinos.
Schippers identified continued gaming expansion and the rise of skill games as the primary risks to the industry.
Parx Casino and Live! Casino representatives also testified, emphasizing the lack of consumer safeguards and regulation for skill games. They highlighted the absence of fair play regulations and minimum payout requirements, as well as the risk of underage individuals accessing these machines.
Supporters Defend Skill Games
Following the casino interests’ testimony, the Senate committee welcomed input from skill gaming proponents. Pace-O-Matic’s chief public affairs officer, Michael Barley, agreed with the need for regulation and taxation. However, Barley argued that the decline in casino slot play has more to do with online gaming than skill games.
POM CEO Paul Goldean highlighted the significant benefits of skill games for small businesses and nonprofits, emphasizing the importance of sustainable income and age-restricted locations.
Goldean pointed out the legal victories for skill games and appealed for reasonable regulation without overly restricting their operation.
The Senate Community, Economic, and Recreational Development Committee did not vote on SB 706 during the recent hearing. The future schedule for further consideration of the bill has yet to be determined.
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