Deadline Approaches for Pennsylvania's Skill Games Legislation Efforts

Skill games regulation in Pennsylvania remains elusive as legislators face missing their deadline to create guidelines for the gambling machines that operate like slots but have no oversight.

A Pennsylvania Supreme Court order in June gave the Legislature until Oct. 13 to pass a law surrounding the unregulated machines popular in social clubs, bars, restaurants and gas stations.

Without one, the machines would become illegal since they would be considered slot machines, which are only permitted in the state’s 17 regulated casinos.

Are Pa. legislators making skill games proposals?

A memo circulated by Republican Sen. Gene Yaw from the state’s Northern Tier and Democratic Sen. Anthony Williams from Philadelphia suggests a $500 monthly fee per skill game terminal. The plan unveiled Sept. 30 projects approximately $700 million in annual statewide revenue.

That same day, a companion bill in the House was presented with bipartisan support.

There are believed to be at least 70,000 skill games operating across the state, but only 24,856 slot machines operating in state-regulated casinos, according to figures from the attorney general's office and the Pennsylvania Gaming Control Board.

At least two proposals ― one each in the House and Senate ― seek a six-month extension to give legislators more than the court-ordered four-months that is nearly expired.

Republican state Rep. Russ Diamond, of Lebanon County, put out a plan to reduce the tax rate for casino slot machines from 52% to 49.9% and tax skill games at the same rate.

Are legislators close to a solution?

Discussions are happening, legislators in both the state House and Senate confirmed.

“We’re all waiting,” Democratic state Rep. Scott Conklin from Centre County told USA TODAY Network Pennsylvania.

Republican state Rep. Mike Jones, from York County, said he is hopeful there may be something coming next week.  

“I think it’s ridiculous we haven’t prioritized this and figured out a way for people to keep the machines,” Jones said.

With bipartisan proposals aplenty, the issue is striking in that the two chambers appear at odds over how to get something signed into law.

"Years ago, Senate Republicans promised to take the lead on regulating skill games, and we’ve been eagerly awaiting their plan ever since," House Speaker Joanna McClinton of Philadelphia wrote in a statement to USA TODAY Network Pennsylvania. "Resolving this issue is critical to small businesses, social organizations and people in our communities. It’s time for Senate Republicans to show Pennsylvanians their plan so we can move forward with a clear, responsible approach to regulating skill games."

What happens if nothing gets done?

The Pennsylvania State Police have notified businesses with the machines to have them removed. Simply mothballing them will not suffice, officials have warned.

Both the House and Senate have three session days ― Oct. 5-7 ― left before the deadline.

Pennsylvania State Police launched a new informational webpage at pa.gov/psp/skillgames to provide businesses and establishments with additional resources regarding the skill games decision and compliance requirements.

Establishments with a liquor license can contact the local Bureau of Liquor Control Enforcement office for assistance.

Establishments without a liquor license should contact the local police department or PSP station for assistance.