Lycoming News

In a June 13 opinion piece published on PennLive, former Gov. Ed Rendell suggested that "skill games" should be taxed at the same rate as slot machines. His statement reflects the rhetoric promoted by the Pennsylvania casino industry regarding skill games. These arguments, however, overlook both legal definitions and factual distinctions of skill games as defined by Pennsylvania courts.

Sen. Gene Yaw (R-23), the prime sponsor of Senate Bill 706, which aims to tax and regulate skill games, responded to Rendell's assertions. According to Sen. Yaw, only Pennsylvania Skill games developed by Pace-O-Matic (POM) have generated court decisions defining what constitutes a skill game. Despite being targeted as illegal by certain law enforcement entities, POM’s games have been repeatedly upheld by favorable court rulings, including a unanimous decision by the Commonwealth Court affirming that these games are predominantly based on skill rather than chance.

"A slot machine is a game of chance with a predetermined outcome," Sen. Yaw explained. "The outcome of a true skill game can be influenced by the mental acuity of the player." He further noted that one of the commonwealth's witnesses testified to being able to beat the game consistently.

Senate Bill 706 aims to preserve the distinction between skill games and games of chance while eliminating illegal devices from the market. The legislation prohibits gaming from being an establishment's primary source of income and limits businesses to five terminals each, thereby preventing gaming parlors and mini-casinos from overwhelming communities with illegal machines.

Despite logic suggesting that casinos and the gambling industry should support such legislation, Sen. Yaw argues that corporate interests have overshadowed facts and logic due to their significant earnings. In just the first quarter of 2024 alone, Pennsylvania casinos reported nearly $1.7 billion in revenue.

"Governor Rendell, do you really believe the casino industry will be negatively impacted by a 16% tax on legal skill games as proposed in Senate Bill 706 when those casinos continue to experience record-breaking profits even as skill games go unregulated?" Sen. Yaw questioned.

Skill games provide supplemental income to local businesses and must be played in person on-premises, unlike slot machines accessible via mobile devices around-the-clock.

Senate Bill 706 presents an opportunity for taxation estimated to generate up to $300 million annually for Pennsylvania—a potential revenue source likened by Sen. Yaw to holding a winning lottery ticket yet refusing to cash it.

"The choice is clear," concluded Sen. Yaw. "It is vital now more than ever that the legislature take necessary steps to regulate this important industry, capitalizing on significant potential revenue and supporting small businesses."

Senator Gene Yaw represents Bradford, Lycoming, Sullivan, Tioga, and Union counties in Pennsylvania's 23rd Senatorial District.

Contact:

Elizabeth Weitzel

717-787-3280

---