Pennsylvania legislator proposes legislation for skill games, exempting them from any additional taxes.
In the heart of Pennsylvania, a heated debate is unfolding over the regulation and taxation of skill games, with no definitive resolution in sight as of mid-2025. The center of this controversy is House Bill 1619, a proposed legislation introduced by Representative Kerry Benninghoff of House District 171.
Unlike other proposals, Benninghoff's bill aims to regulate skill games statewide without imposing any new taxes or fees on the games or their revenue. The bill emphasizes that businesses operating skill games are already contributing significantly to the state's coffers through standard sales, income, property, and local taxes. This stance contrasts sharply with other proposals advocating substantial tax rates.
For instance, Governor Josh Shapiro has expressed support for a 52% tax rate, similar to that of casino slot machines. On the other end of the spectrum, Senator Gene Yaw has proposed a much lower 16% tax rate, while Senator Chris Gebhard has introduced legislation suggesting a 35% tax rate, a "starting point" between the two figures.
The Commonwealth Court ruling from December 2023 has allowed the games to operate legally, albeit without a clear regulatory and tax framework. The impending state budget deadline and an awaited Pennsylvania Supreme Court ruling on the legality of skill games add further uncertainty to the timeline for final legislation.
Notably, Benninghoff's bill includes a provision to grandfather in all existing skill game machines. Moreover, the bill's tax provisions are distinct from the tax proposals that have been discussed among several lawmakers. A memo written by Representative Kerry Benninghoff in April indicated a proposal for skill games without a "special" tax.
As the debate continues, it is clear that Pennsylvania is at a crossroads in deciding the future of skill games. The tax structure on these games remains a contentious issue, with competing proposals ranging from no new tax (Benninghoff) to as high as 52% (Shapiro). The legislative process is still in its early stages, and it remains to be seen how this issue will be resolved.
In the ongoing debate about skill games regulation in Pennsylvania, Representative Kerry Benninghoff's bill proposes a unique stance in the field of finance, advocating for no new taxes on skill games or their revenue, citing significant contribution from existing taxes. This contrasts with other business-related proposals, such as Governor Josh Shapiro's support for a 52% tax rate, akin to casino slot machines, and Senator Chris Gebhard's proposed 35%, which is seen as a starting point between the two extreme positions.
