Pennsylvania Moves Closer to Regulating Skill-Based Gaming

In an effort to legalize and control skill-based games that have proliferated throughout Pennsylvania, state senator Gene Yaw is pursuing a new measure. Known as “Pennsylvania Skill,” these slot-like machines are manufactured by Pace-O-Matic (POM) and are prevalent in local businesses, truck stops, and pubs. The maker asserts that these games are lawful because skill-based features, including the ability to arrange a “wild” symbol to create a winning combination, allow players to affect results.

Casino Operators Strongly Oppose the Bill

While Yaw and his supporters advocate for regulation, the casino industry remains firmly against it. Groups such as the American Gaming Association (AGA) and the Association of Gaming Equipment Manufacturers (AGEM) argue that these machines are nothing more than unregulated slot machines. They highlight that:

• Skill games lack oversight to ensure fairness.
• There are no responsible gambling protections or anti-money laundering measures.
• The machines do not contribute tax revenue, unlike casino slots, which are taxed at 54%.

In a number of cases where state police had seized the games, Pennsylvania courts had decided in favor of POM despite the objections. These decisions, according to POM, demonstrate that their machines abide by the law.

POM maintains, citing record-breaking earnings in Pennsylvania’s casino industry, that skill games have no detrimental effect on casino revenue. However, casino operators contend that while businesses like POM are exempt from these rules, they are subject to stringent licensing procedures, background checks, and significant tax duties.

Similar legislation have been introduced by Yaw before, but none of them have reached a vote. Bar owners, private clubs, small enterprises, and organizations that profit from skill games support his efforts.

“Skill games are a piece of the economy in our state,” Yaw told The Center Square. “They cannot and should not be ignored.”

Proposed Regulations and Taxation

Yaw’s bill proposes key regulations, including:

• A minimum age requirement for players.
• Machines must connect to a centralized system for tax collection.
• A 16% tax rate on skill game revenue.

According to Mike Barley, POM’s chief public affairs officer, legalization would protect 15,000 jobs in small businesses and volunteer organizations.

“We ask lawmakers to pass this measure because it has helped many of these businesses and organizations stay afloat as they deal with inflation and worker shortages,” Barley stated.

As the debate continues, Pennsylvania lawmakers will have to decide whether skill games should remain unregulated or be formally integrated into the state’s gambling framework.

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