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Rep. Ben Waxman, D-Philadelphia, has formally introduced the Skill Game Consumer Protection Act, moving beyond a preliminary memorandum to establish a rigid safety framework for Pennsylvania’s unregulated skill-game market.
The bill’s introduction comes at a volatile moment for the industry. On April 8, Pennsylvania Attorney General Dave Sunday announced a $5 million forfeiture and the dissolution of two major gaming companies that pleaded guilty to felony corrupt organization charges. Law enforcement officials noted that the companies were operating illegal slot machines “dressed up as skill games,” intensifying the push for legislative clarity.
Extending casino standards to Pennsylvania skill games
Waxman’s proposal seeks to bridge the gap between the state’s regulated gaming industry and the estimated 70,000 skill-game machines currently operating in bars and retail locations.
“If skill games are going to be regulated, they should be designed to minimize harm,” Waxman said. “They currently present a heightened risk to vulnerable populations due to their accessibility and speed of play.”
Under the proposed Act, any legalized skill games would be subject to:
- Centralized Monitoring: Oversight by the Pennsylvania Gaming Control Board (PGCB) via a mandatory tracking system.
- Casino-Style Protections: Implementation of play-speed limits, mandatory breaks, and daily loss caps.
- Expanded Self-Exclusion: Extending the state’s gambling self-exclusion list to include all skill-game terminals.
- Location Bans: A total prohibition of the machines in gas stations and convenience stores.
Taxing skill games for problem gambling programs
The legislation arrives as Governor Josh Shapiro pushes a 52% tax rate on skill games in his 2026-27 budget proposal—a rate mirrored after the tax on traditional casino slot machines. Shapiro’s administration estimates the tax could generate $766 million in annual revenue for education and social services.
However, the industry remains fractured. While Waxman focuses on consumer safety, other active legislative proposals offer wildly different economic paths:
- SB 626 (Sen. Gene Yaw): Proposes a much lower 16% tax to keep the games viable for small businesses.
- SB 756 (Sen. Chris Gebhard): Suggests a 35% tax as a middle-ground revenue driver.
- HB 2046 (Rep. Danilo Burgos): Proposes operator fees while simultaneously cutting taxes for Category 4 “mini-casinos.”
Will the PA Supreme Court decide the fate of skill games?
The future of Waxman’s bill may ultimately depend on the Pennsylvania Supreme Court. The state’s highest court is expected to rule this spring on whether these devices are inherently illegal gambling or legitimate games of skill.
If the court rules against the industry, Waxman’s “Consumer Protection Act” could serve as the primary vehicle for a legislative rescue, allowing the games to remain only if they meet the strict transparency and safety standards of the state’s casino framework.
