A 52% tax on skill-based gaming gadgets is one of the proposals put out by Pennsylvania Governor Josh Shapiro in his state budget. Although the move is intended to bring in $360 million, state officials are strongly opposed to it.
During his budget address, Governor Shapiro highlighted the widespread use of unregulated skill-based gaming terminals across the state. “There are 70,000 unregulated skill game terminals all across Pennsylvania,” he said. “We need to take some of the money going into those slots and put it in our state coffers.”
Senator Gene Yaw was adamantly opposed to the proposed tax rate, regardless of the Governor’s position. He rejected the notion, stating that he “almost laughed” at the 52% rate and that he intends to propose legislation that would impose a 16% tax on these devices. Senator Yaw said that skill-based games should not be taxed like conventional casino games because they help small companies throughout the state.
A Divided Approach on Oversight
In addition to the tax proposal, Governor Shapiro suggested granting the Pennsylvania Gaming Control Board (PGCB) full authority over the distribution of skill-based gaming devices. This would allow the PGCB to decide which establishments, including bars and convenience stores, could host these devices. However, Senator Yaw disagrees with this plan, arguing that the Department of Revenue should take charge of the oversight. Yaw expressed concerns that the PGCB is “too cozy” with casinos and has been overly critical of skill-based games.
As the debate continues, the outcome of these proposals could have a significant impact on the state’s gaming landscape.
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