Skill Games Soon Could Be Illegal In PA, New Proposal To Regulate Them Offered

HARRISBURG, PA — A new proposal to regulate skill games in Pennsylvania has emerged as the deadline looms for the state legislature to legalize them.

State Rep. Russ Diamond, a Lebanon County Republican, plans to introduce two pieces of legislation to regulate slot-machine-like skill games. If they are adopted, Diamond predicts homeowners would receive nearly $1 billion in property tax relief.

The Pennsylvania Supreme Court ruled in June that the estimated 70,000 skill games in the state are subject to both the Gaming Act and the Crimes Code.

The court's ruling included a 120-day window in which law enforcement agencies can't take action against skill games owners and operators.

That window closes on Oct. 13 and has concerned the operators of ars, social clubs, fire halls and gas stations that soon could see their machines being seized by the Pennsylvania State Police.

Diamond contended that the state's gaming law originally was 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 make sure Pennsylvania homeowners see a greater benefit from the revenue generated by gaming.”

Under Diamond's proposal, skill games would be regulated and taxed at a rate of 20 percent, with up to five machines permitted only in clubs, liquor-licensed restaurants and bars, and qualified truck stops.

The legislation would also reduce the tax rate for casino-based slot machines to 49.9 percent and set the same rate for all online casino games.

Diamond said his bill package establishes a defined formula to maximize property tax relief, provide reliable annual funding for the Race Horse Development Trust Fund, nearly double support for compulsive and problem gambling treatment, and maintain a dependable revenue stream for the state’s General Fund.

A competing skill games bill exists in the state senate, where senators Gene Law of Bradford County and Anthony Williams of Philadelphia have introduced a measure that would implement a$500-per-skill game machine monthly fee.

Yaw and Williams project that would generate approximately $300 million annually, with nearly half of the money going to public transportation and infrastructure costs. Some money also would go to the state Clean Streams Fund.