State Rep. Ben Waxman (D-Philadelphia) has introduced the Skill Game Consumer Protection Act to regulate Pennsylvania’s unmonitored skill-game market.
The legislation comes during heightened scrutiny of the industry. On April 8, Attorney General Dave Sunday announced a $5 million forfeiture and the shutdown of two gaming companies that pleaded guilty to felony corrupt organization charges.
Authorities said the businesses were operating illegal slot machines disguised as skill games, intensifying calls for clearer regulations.
Waxman’s proposal aims to close the gap between Pennsylvania’s regulated casino sector and an estimated 70,000 skill-game machines currently operating in bars, restaurants, and retail establishments statewide.
“If skill games are going to be regulated, they should be designed to minimize harm,” Waxman said, as reported by PlayUSA. “They currently present a heightened risk to vulnerable populations due to their accessibility and speed of play.”
The bill would require centralized monitoring under the Pennsylvania Gaming Control Board through a mandatory tracking system, while also imposing casino-style protections such as limits on play speed, mandatory breaks, and daily loss caps.
It would expand the state’s gambling self-exclusion program to include all skill-game terminals and ban the machines from operating in gas stations and convenience stores.
The proposal comes as Gov. Josh Shapiro is seeking a 52% tax on skill games in his 2026–27 budget, aligning it with the tax rate on casino slot machines. State officials project the measure could bring in about $766 million each year for education and social services.
Other bills under consideration take different approaches to taxing skill games. SB 626 from Sen. Gene Yaw proposes a lower 16% tax aimed at keeping the industry viable for small businesses. SB 756 from Sen. Chris Gebhard sets a 35% tax rate as a middle-ground option to generate revenue. Meanwhile, HB 2046 from Rep. Danilo Burgos would impose operator fees while reducing taxes on Category 4 “mini-casinos.”
The Pennsylvania Supreme Court is expected to rule this spring on whether skill-game machines constitute illegal gambling or legitimate games of skill.
If the court rules against the legality of the machines, Waxman’s bill could provide a pathway for legalization under strict consumer protection and transparency standards aligned with the state’s existing casino regulations.
