July 7, 2025
A bill introduced in the Pennsylvania House aims to regulate casino skill games by establishing a licensing system without adding new taxes. Representative Kerry Benninghoff’s proposal seeks to formalize the operation of these machines while maintaining the current tax framework.
The legislation would grandfather existing skill-game terminals and require licensing fees for distributors, operators, and venues. Initial fees would be set at $50,000 for distributors, $5,000 for operators, and $250 for venues. Renewal fees would decrease over time.
The state Department of Revenue would oversee and regulate casino skill games, including setting limits on the number and types of machines allowed. The bill explicitly prohibits the imposition of any new taxes specific to skill-game revenue. Instead, these games would remain subject only to existing sales and personal income taxes.
This approach contrasts with other proposals that suggest significant tax rates ranging from 16 percent up to 52 percent. Supporters say the licensing framework provides clarity and regulation without burdening operators with additional costs. Critics argue that the state could lose substantial tax revenue if a higher tax rate is not adopted.
With the state budget deadline approaching, lawmakers have yet to reach an agreement on how to regulate casino skill games. The future of the bill remains uncertain as discussions continue. The outcome will have important implications for the regulation and taxation of skill-game terminals in Pennsylvania.
