The PA Gambling Community Reacts to Skill Games Tax

As news of Governor Josh Shapiro’s plans to slap a 42% tax on skill games made waves across Pennsylvania’s gambling community, reactions from various quarters have started coming in. And it’s a mixed bag, with PA online casino and land-based operators torn between continuing with efforts to have these machines banned, while others push for the taxation measure to go through.

Pennsylvania Skill Games Slammed by Casino Operators

Skill game machines, which are enjoying a proliferation across the Keystone State, have remained largely unregulated. Things look set to change as, earlier this month, Governor Shapiro’s budget speech included a proposed 42% tax on all skill games revenue. 

Parx CEO Eric Hausler said that it’s “odd” how casinos are required to pay $50 million for a gambling license, with slots taxed at 54%, while skill games are “paying zero”. He also highlighted the fact that minors can be legally exposed to such games given that they are found in arcades, fast-food joints, and other unregulated retail outlets, adding that “if 18-year-olds walk into Parx, we get fined $15,000”.

And, in a strongly-worded editorial on Triblive, journalist Wilkes-Barre urged for the urgent regulation of these machines, claiming that as things stand “gambling is among the most heavily regulated and taxed businesses in Pennsylvania — except for the variety available at the local convenience store”.

The Council of Compulsive Gambling of Pennsylvania (CCGP) has also called for the taxation of skill games, saying that the machines are even appearing in “some of the most unsuspecting places, like Babylon Nail Spa and Salon in Susquehanna Township”. The CCPG also urged for the inclusion of the gambling helpline alongside the machines. 

Pace-O-Matic Welcomes Start of Conversation

Meantime, Chief Public Affairs Officer of Pace-O-Matic Mike Barley applauded the move and welcomed the conversation, stating that the company “looked forward to working with the Governor, his administration, and the general assembly to pass and formalize a fair regulatory and taxation structure for the skill games industry”.