Lycoming News

Senator Gene Yaw has reintroduced legislation aimed at supporting small businesses and veterans' groups that rely on skill games for supplemental income. The bill seeks to protect them from potentially devastating higher taxes. According to Yaw, these games provide vital income for establishments to cover expenses such as staff wages, bills, and community donations.

“There is broad recognition of the need to regulate skill games,” Yaw stated. “But if we set the tax rate too high, we’re not regulating – we’re eliminating. Other proposals are being introduced that could drive skill games out of business entirely. Without them, so many of the small businesses, veterans’ organizations, fraternal clubs, and taverns they support cannot, and will not, survive. I choose to support the economic backbone of Pennsylvania – our small businesses – over the corporate conglomerates.”

The proposed Senate Bill 626 includes a 16% tax rate for skill game operators, which Yaw argues is fair and manageable compared to other proposals with tax rates up to 52%, similar to those paid by large casino operations.

The bill's regulatory framework will require games to connect to a terminal collection and control system for transaction monitoring and tax compliance with the commonwealth. The legislation also plans to introduce stricter penalties for unlicensed and illegal games, mandate valid IDs for players, limit the number of machines per location, and stipulate that these games should only be secondary revenue sources for the businesses.

The Pennsylvania Department of Revenue is designated as the sole regulatory authority under the bill. This decision, Yaw claims, is supported by a series of favorable court rulings, including one from the Commonwealth Court, establishing the games as skill-based. Enforcement is planned to be overseen by the Bureau of Liquor Control Enforcement.

For further information and updates, constituents are encouraged to visit Senator Yaw’s website or follow his social media channels.