Pennsylvania lawmakers were supposed to pass the state’s budget for fiscal year 2025 by July 1. However, several issues delayed timelines, one being the ongoing debate around the taxation of skill games. This marks the second consecutive year that Gov. Josh Shapiro has failed to pass a budget before the state’s constitutional deadline of July 1.
“I am quite confident that we have movement significant enough to allow the pieces of a budget puzzle to come together shortly after the constitutional deadline of June 30,” Senate leader Joe Pittman said on the current impasse.
Skill games are similar to slot machines, allowing players to use these gambling devices and potentially walk away with a profit. However, they do not fall under the same classification as other types of gambling and remain untaxed. The tax rate for most types of gambling in Pennsylvania is 51%.
Gov. Shapiro had previously suggested taxing these machines at 42%, estimating this could bring in up to $150 million in revenues through fiscal year 2025. However, the Pennsylvania Supreme Court recently agreed to review a lower court ruling that the games can legally operate in the state.
The Pennsylvania Gaming Control Board has been looking to clarify and sharpen its enforcement on gambling across the industry, recently banning 11 people from online casinos for breaching gambling regulations.
Lawmakers have tabled other proposals for skill games, including one bill from Senator Gene Yaw suggesting a 16% tax and another from three Senators looking to ban these gaming machines. While these conversations continue, the Keystone State gambling industry continues to thrive, with the Gaming Control Board releasing Pennsylvania sports betting figures showing year-on-year growth.
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