PA Skill Games Tax Must Wait

The operators of PA online casino sites will undoubtedly cry foul, but it’s starting to look like the PA skill games tax won’t become law anytime soon. 

The dilemma of how to regulate the game machines that have become ubiquitous at many PA bars, gas stations and other outlets has been raging since the beginning of the year. But just as things looked like they were on the verge of being settled through a taxation structure, along came a new court case to pull the brakes on any progress.

Regulation Depends on Supreme Court Decision

Pennsylvania lawmakers so far fall under two very different schools of thought with respect to the taxation of skill games. While state governor Josh Shapiro had proposed a 42% revenue tax in his budget address back in February, Senator Gene Yew put forward a considerably lower 16% levy which is currently up for debate by the Gaming Oversight Committee.

But now, all references to the skill games tax have been removed from the FY 2024/2025 budget bill, as lawmakers await a decision by the state Supreme Court which is currently reviewing an earlier Commonwealth Court ruling that skill games don’t constitute gambling.

The new ruling will pave the way for lawmakers who are currently facing a barrage of complaints at the way cities like Philadelphia decided to act unilaterally by completely banning all skill games.

The new decision will also provide clarity as to which taxation system would be more appropriate, as Shapiro’s proposal is very close to the taxation imposed on slot machines, which currently stands at 54%.

On the other hand, should the Supreme Court confirm that such games don’t constitute gambling, Senator Yew’s 16% tax will be likely to be viewed as the more reasonable option. Meanwhile, the Keystone State awaits to see which faction will emerge as the winner.