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About 350 veterans, volunteer firefighters and small-business owners gathered on the steps of the Pennsylvania Capitol in Harrisburg on June 24 to oppose plans to tax skill game machines at the same rate as casino slot machines. The rally came days before the state’s June 30 budget deadline and less than two weeks after the Pennsylvania Supreme Court declared skill games illegal under existing law.
Supreme Court ruling forces lawmakers’ hand
In a June 15 ruling, the court found that skill games are essentially slot machines and fall under the state Gaming Act and Crimes Code, overturning lower-court rulings that had let tens of thousands of machines operate untaxed and unregulated in bars, gas stations, restaurants and social clubs statewide.
To avoid immediate disruption for thousands of businesses, the court stayed enforcement until mid-October — but with budget negotiations already underway, lawmakers face pressure to resolve the issue sooner.
At the center of the fight is Gov. Josh Shapiro‘s proposal to tax skill games at 52% of gross terminal revenue, the same rate casinos pay. Douglas Sprankle, president of the Pennsylvania Taverns and Players Association and the rally’s organizer, said skill games have become a financial backbone for businesses and nonprofits statewide.
The question, he said, isn’t whether to tax the games but whether to set a rate at which operators can survive — a 52% rate, he argued, would force many locations to close and would amount to the largest single levy on small businesses in state history.
Flat fee vs. percentage tax: The key proposals
State Sen. Anthony Williams, D-Philadelphia, told the crowd it was made up of ordinary constituents, not the casino lobby, and warned budget negotiators not to expect a deal without support from the roughly two dozen legislators who joined him.
According to Pennsylvania Capital-Star news, rally supporters backed a bipartisan bill from Williams and Sen. Gene Yaw, R-Lycoming, that would impose a $500 monthly fee per machine instead of a percentage tax — an approach proponents say would generate about $300 million a year while keeping the games viable for small operators. Pace-O-Matic, the Georgia-based company behind the Pennsylvania Skill brand, backs the fee model.
Senate Republican leaders have proposed a 35% tax on gross terminal revenue, while Yaw has separately sponsored a 16% rate. Shapiro has pushed 52% in his last two budget proposals, saying it could generate more than $2 billion annually; the Independent Fiscal Office estimates a regulated market could eventually top $1 billion a year. Pennsylvania’s casino industry, taxed at roughly 55% on slot revenue, has lobbied for a comparable rate on skill games.
With six days left before the deadline, the rally produced no deal, and Senate Republican leaders Kim Ward and Joe Pittman have called gaming reform central to resolving the budget. Rep. Danilo Burgos, D-Philadelphia, a co-sponsor of the House per-machine fee bill, said the demand from those gathered was simple: an approach that protects small businesses rather than creating winners and losers.
Veterans posts say skill games are a lifeline
Steve Holmes, commander of the Ephraim Slaughter American Legion Post 733 in Harrisburg, described his post as a refuge for veterans working through the trauma of war. Skill game revenue funds homeless veterans’ services, suicide prevention and community events such as backpack drives and holiday parties, he said — money that flows straight back out to veterans who need it most.
Mark Coolbough, of Cressona American Legion Post 286 in Schuylkill County, said the games helped his post survive the financial strain of the pandemic and urged lawmakers to visit their constituents directly to see what the revenue — and its potential loss — means at the community level.
Jack Paul, assistant chief at the Deer Lake & West Brunswick Fire Company in Schuylkill County, said his station, with just 31 active members covering a large rural territory, could no longer rely on traditional fundraisers alone. Skill games let the company pay bills on time, keep its trucks fueled and equip firefighters with up-to-date uniforms and safety gear — a revenue stream he said the company can’t afford to lose.
