Pennsylvania moves to regulate skill games
Add Axios as your preferred source to
see more of our stories on Google.
Skill games inside a convenience store in Breezewood. Photo: Ryan Deto/Axios
You might see fewer skill games in Pennsylvania's convenience stores, gas stations, bars and restaurants soon.
Why it matters: Unregulated skill games — machines where users can win cash prizes by besting puzzles and other video games — have spread throughout the state, coinciding with rising rates of gambling addiction.
Driving the news: Skill games are essentially slot machines under state law and are subject to gambling and crime statutes, the Supreme Court ruled Monday in a series of decisions.
By the numbers: There are an estimated 70,000 skill games in Pennsylvania, according to state Attorney General Dave Sunday.
State of play: Lawmakers now have until Oct. 13 to regulate the devices, and both Democrats and Republicans have an appetite to address the issues.
- Pennsylvania Senate President Pro Tempore Kim Ward (R-Westmoreland) and Senate Majority Leader Joe Pittman (R-Indiana) said in a joint statement that regulating skill games is a "matter of public safety." They said they want legislation included in the state budget and any revenue generated to move into the state's general fund.
- State Sen. Jay Costa (D-Forest Hills), the party's leader in the Senate, told Axios that "the Supreme Court of Pennsylvania confirmed what we have long believed – skill games are illegal machines under Pennsylvania law. We must now review the opinions and determine the best path forward that is collectively agreeable to all parties."
Follow the money: If regulated, the Independent Fiscal Office estimates skill games would generate $487 million in next year's budget and up to $1.19 billion by the 2030-31 fiscal year.
Between the lines: Gov. Josh Shapiro supports taxing skill games, and his proposed budget this year would tax them at a rate of 52%, similar to the state's 55% tax on casino slot machines and other electronic games.
Friction point: Costa acknowledged at a roundtable discussion on gambling issues in Pittsburgh this month that regulating skill games will impact small business owners.
- He said local law enforcement officials were wary of citing small businesses because they didn't want to impact their bottom line.
The bottom line: Local lawmakers like state Sen. Wayne Fontana (D-Brookline) said at the roundtable that there is "no question" that skill games should be regulated.
- "Every day there are new skill games in a storefront; we need to get something done."