PA senators introduce bipartisan proposal to regulate skill games

Two Pennsylvania senators are teaming up to introduce bipartisan legislation to regulate skill-based gaming machines in the commonwealth – an effort they say will generate much-needed revenue for the state while also helping crack down on illegal gaming.

State Sens. Gene Yaw, a Republican, and Anthony H. Williams, a Democrat, on Monday introduced Senate Bill 1079, a bill that outlines a regulatory structure for skill games – yet-to-be-regulated gaming terminals that resemble video slot machines, but are different in that winnings are based on an element of skill, not chance. 

The games can be found in bars, convenience stores, gas stations and fraternal clubs statewide, but are currently untaxed because they fall outside the scope of the state’s gaming laws.

The legislation would replace a previously proposed tax on skill gaming machines with a $500 monthly fee per machine. In 2019, the Virginia Joint Legislative Audit and Review Commission estimated that Pennsylvania could have anywhere between 52,000 and 82,000 skill game machines, while the American Gaming Association suggests that there are approximately 67,000 skill game machines in Pennsylvania. The bill sponsors estimate that the regulatory structure proposed in the bill could generate roughly $300 million in annual revenue. 

“There is broad recognition of the need to regulate skill games,” Yaw said on Monday. “This legislation delivers immediate revenue, supports small businesses and veterans’ organizations, and puts safeguards in place to protect our communities.” 

“It’s time to move beyond the rhetoric and enact meaningful reform,” he added.

The bill also seeks to crack down on nuisance behavior surrounding so-called stop-and-gos – businesses with liquor licenses that operate as convenience stores or delis, but which a legislative task force said in 2024 “fail to operate as a bona fide restaurant or eating place, barely complying with minimum requirements associated with their licenses.”

The legislative proposal introduced by Yaw and Williams would strengthen penalties for those who operate unlicensed or illegal gaming machines, and would also require an ID for individuals to play. 

The bill would also place a limit on the number of machines a business can have, and would require games to be a secondary source of revenue for the establishment, not a primary revenue source. 

Williams said in a statement that the bill will help address nuisance locations in cities like Philadelphia, while also providing a new revenue stream for the state. 

“Communities across Pennsylvania have been asking us to take action on unregulated skill games and nuisance locations,” Williams said. “This bill is about fairness, safety and responsibility. It ensures that revenue is directed where it can do the most good, like supporting public transportation and infrastructure, while also giving our neighborhoods relief from the problems caused by illegal games.”

The framework outlined in the bill would also require games to be connected to a terminal collection and control system that the state can monitor, similar to the Pennsylvania Lottery.