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In an unprecedented move, State Rep. Robert Leadbeter is drafting legislation to provide oversight of Pennsylvania’s skill games industry.
His bill would also see casino-based revenue channeled into funding school choice programs throughout the state.
Should the proposal pass, skill games (the controversial machines typically located in restaurants, convenience stores, and bars) would be subject to taxation.
Tax proceeds from the machines located outside retail casinos would be paid into the Pennsylvania General Fund. However, revenue from the machines inside casinos would be directed to a School Choice Fund.
Legislation timeline
Leadbeter has yet to formally introduce a bill. However, he has issued a memo officially notifying all House members of his intentions.
Leadbeter does not provide a timeline for introducing the legislation in the memo. Despite that, state observers expect the bill to be introduced next year.
There has been a lot of buzz about the potential contents of the bill. In an interview with PlayPennsylvania earlier this month, Pace-O-Matic’s chief public affairs officer, Mike Barley, said the company was eagerly awaiting the bill. Georgia-based Pace-O-Matic manufactures skill games and maintains operations across Pennsylvania.
Purpose of the legislation
The skill games industry in Pennsylvania currently operates in a legal “gray” area with no clear regulations. Leadbeter seeks to change that. If passed, the skill games industry would have laws that govern its operations in the state. In addition to clear guidelines, tax proceeds from the sector would be used to benefit communities across the state.
According to his memo, Leadbeter hopes to ensure proper regulation of skill games and to direct revenue toward meaningful public purposes. Responsible casino operations in Pennsylvania can contribute to community development and broader social benefit, he wrote.
As for the bill’s framework, the memo stated that it will mirror Pennsylvania’s Local Share Account (LSA) model. The LSA model allocates revenue from gambling operators to economic development, emergency services, and local infrastructure.
By directing the funds to a School Choice Fund, the state empowers parents to select the educational path that best meets their children’s needs, rather than relying on a one-size-fits-all system, he wrote.
He further noted that lawmakers have a duty to prepare young people for the challenges ahead. By allocating proceeds from skill games to school choice, the state is making a direct investment in their futures.
