Pennsylvania Senator Chris Gebhard introduced a comprehensive bill that outlines regulation and a tax structure for skill games. Pace-O-Matic (POM), a Georgia-based skill games manufacturer, has come out and opposed the bill.
Skill games have been a controversial topic in Pennsylvania over the last several years. However, the Commonwealth Court seeking for regulation.
Gebhard, along with co-sponsors Senate President Pro Tempore Kim Ward and Senate Majority Leader Joe Pittman, has a plan to make skill games part of the gambling fabric in the Keystone State. The trio of leaders, along with Senator Rosemary Brown, proposed this legislation back in January.
Regulation for skill games
The sponsors of Senate Bill 756 wrote out a 183-page legislation that lays the groundwork for skill games in Pennsylvania. There are a number of factors the bill explains.
One of the biggest is, perhaps, the tax percentage from the games, which has been all over the map. Gebhard’s bill calls for a 35% tax, which is Senator Gene Yaw’s bill.
The games would also be under the jurisdiction of the Pennsylvania Gaming Control Board (PGCB). The PGCB would oversee where the games are located.
In the bill, Gebhard limits the amount of skill games to businesses that have Pennsylvania liquor license, along with stores that sell Pennsylvania Lottery tickets. The bill also established fees for owning and operating skill games:
- Manufacturing license: $50,000
- Terminal operating license: $25,000
- Establishment license: $250
- Key employee or principle license: $500
Gebhard has also determined that tax revenue would be put into the Skill Gaming Fund, which would be distributed to the Compulsive and Problem Gambling Treatment Fund and the General Fund.
There are other provisions in the bill that would seek out illegal gambling, which are games that are based purely on chance.
Why POM is against the bill
POM claims that a tax percentage of 35% puts the small businesses in danger, in particular, family-owned companies and organizations such as Veterans of Foreign Wars, American Legions and volunteer fire companies. It believes that the bill is overregulated, too.
The supplemental income from skill machines has been integral to the success of small businesses, according to POM. Mike Barley, POM Chief of Public Affairs, said in a statement emailed to PlayPennsylvania:
“Senator Gebhard is not listening to business owners and fraternal groups suffering financially from an unstable economy and the skyrocketing cost of food and other goods.
“Local fire departments in the senator’s own district say skill game revenue is essential to their community protection efforts, and they can’t do enough fundraising to keep up with financial demands. They are grateful to have skill games to help with ever-increasing costs.”
POM is in favor of Yaw’s bill, which has the Department of Revenue overseeing regulation and the machines taxed at a 16%. Barley continued in his statement:
“The goal of Senator Yaw’s legislation is to help small businesses and fraternal groups while making sure there is ability and funding for the state, all of which is what Gov. Josh Shapiro wants as well.
“Senator Gebhard’s measure will destroy small businesses because they can’t afford his high tax rate on skill games. This means the state also won’t get the additional tax income it wants to fund important priorities.”
Gov. Shapiro proposed a 52% tax in his budget address last February. Gebhard’s tax rate does fall in the middle, but still favors Shapiro’s vision over Yaw’s and POM’s.
