Will tax on skill games make next Pennsylvania budget?

Yahoo

11-04-2025

HARRISBURG, Pa. (WHTM) — The budget deadline is rapidly approaching, and many at the State Capitol are counting on money from a tax on skill games. But will that get done in time or at all?
The lawmaker who may be closest to the issue has his doubts as the wheels keep spinning on tens of thousands of skill games across the Commonwealth. Lots of people are playing, but the biggest winners are the folks behind the machines, who continue to be untaxed and unregulated by the state.
Governor Shapiro proposes regulations for skill games in budget address
'Last year, we left $300 million on the table. One year before, we left $300 million. This year, we're going to leave $300 million,' said Republican State Senator Gene Yaw.
He's pro-skills games, which are manufactured in his district in Pennsylvania's Northern Tier.
The fight is over the tax rate on the machines. He wants 16% while others want it closer to casino slot machines that are north of 50%.
'It's just kind of a wrestling match,' Yaw said. 'There's a lot of fencing going on.'
Governor Josh Shapiro's budget calls for a 52% tax rate and is counting on $360 billion next fiscal year. The
'We need to take some of the money going into those slots and put it in our state coffers so we can maintain our reserves and keep building on our progress,' Shapiro said.
Will the governor get his wish in the budget, now due in just over two months?
'I honestly don't see anything happening for this budget,' Yaw said. 'I really don't.'
'Well, I'm still optimistic that we can come to an agreement,' House Republican Leader Jesse Topper said. He says it's important to get it right.
'You don't want to use it as a cash grab,' Topper said. 'When you're sweating, when you're strapped for cash, I think that that breeds bad public policy. So I think we have an incentive to try and get something done early.'
Early is a curious word for games that have lingered in legal and legislative limbo for years while the Commonwealth doesn't cash in.
'We've been putting this off for too long,' Shapiro said. 'Let's be real, it's time to regulate and tax skill games.'
Yaw says a 50% or more tax rate would kill the industry because the smaller mom and pop shops and VFWs that have skills games can't afford it. Casinos argue it's only fair such machines be taxed at the same rate as their slots.
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