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Pennsylvania skill game debate gets ugly in the Senate

Lewis Constable

November 29, 2025

Accusations of threats, lobbying pressure and multimillion-dollar stakes have turned Pennsylvania’s debate over skill game regulation into one of the Capitol’s most contentious fights this session. Efforts to find a bipartisan compromise in the oversight and taxation of the issue fell apart in the most recent round of legislation in the Senate this week, in a blow to Governor Josh Shapiro’s agenda.

So-called skill games are electronic machines typically found in bars and require a level of human ability for players to secure a win. Proponents of regulation say the state is missing out on a significant revenue stream to keep pace with the growing demands on education, infrastructure, and social programs.

Governor Shapiro had proposed a 52% tax on the gross revenue of skill games in his budget address back in February and failure to get it through is a blow to the Democratic figurehead. He had previously referred to the need for regulating skill games as “unfinished business”.

Ill-feeling intensifies in skill game debate

Some involved in this process are accusing opposing sides of unsavory behavior, which is a testament to how much of a toxic issue this is becoming in Pennsylvanian politics.

Senate President Pro Tempore Kim Ward of R-Westmoreland had told a news conference after the budget’s passage back on November 12: “We get threatened all the time by some of these interests, you know, ‘We’re going to come beat you up. We’re going to come take you out.’”

She added it stiffens her resolve in fighting against the bill: “That’s just ridiculous, and it just makes my blood pressure go up. We don’t do well being bullied. And I think a lot of these gaming interests have done nothing but try to bully us. And I don’t think we stand for that.”

Earlier in the year, skill games developer and distributor Pace-O-Matic accused the state Senate’s top two GOP leaders of intimidating its lobbying groups with retaliatory measures in the state capitol. Michael Barley, Pace-O-Matic’s chief public affairs officer, said in an interview: “We are being told, ‘We are very sorry we have to do this, here is why,” before adding “this one was ugly”.

The recent outcome in the Capitol is only likely to increase the animosity, though some lawmakers believe it is only a matter of time before the measure is passed. Anthony Williams (D., Philadelphia), has proposed levying a $500 monthly fee per machine, rather than a tax, in a move that he believes could bring in an extra $500 million a year. Even if his idea doesn’t go through, he’s optimistic one will.

He told reporters: “I think it will be included. We got a budget that’s passed, but revenue challenges are coming next year, and we’re not going to raise taxes. So this, along with other items, will be considered.”

The reasons behind the disagreements

Those in favor of introducing a regulatory body to Pennsylvania believe the state is missing out on millions of dollars in revenue that can help deliver funding to several crucial social programs. However, there remain disagreements on the ethical implications of legalizing the practice.

Gaming is already bringing in substantial amounts to state government coffers. In the American Gaming Association’s State of the States 2025 report, Pennsylvania generated $2.53 billion in commercial casino gaming tax revenue in 2024, with roughly $1.77 billion flowing to the state to support school property tax reductions, local law enforcement grants and responsible gaming programs.

The AGA also reports that $438.8 million went to local and county governments, while $188.5 million supported the horse racing industry, with the remaining funds directed to the state’s economic development and tourism initiatives.

However, opponents would argue the social impacts of gambling legalization outweigh the cons. Back in October 2024, skill games were banned in Bensalem, Bucks County, in Pennsylvania, due to complaints from the public. At the time, Public Safety Director William McVey, said: “We’ve seen a proliferation of these machines and all types of businesses and we’ve also seen it welcome a criminal element. We’re doing this based on the public safety need for Bensalem Township, based on the data that we’ve had. I’ve seen a 40% increase of these machines in our township in one year.”

The Philadelphia City Council also unanimously approved legislation banning businesses from having them on the premises, citing concerns that the unregulated machines attract crime and harm neighborhoods. The ban applies to convenience stores, corner shops, and other small businesses unless they also hold a casino or liquor license.

Brighter days ahead may mend broken paths

Despite the rancor of recent weeks and months, an agreement that assuages both sides of the debate is very possible, if not likely.

Industry analysts and politicians within the legislation process believe Pennsylvania’s long-term revenue outlook off the back of regulation would ease those tensions. The steady rise in gaming tax receipts would offer lawmakers more room to address infrastructure needs, property tax pressures and funding gaps in local services.

Joe Pittman, state Senate Majority Leader of Pennsylvania, said “This building has a long history of going through gaming debates, and they are very complex and very tedious and very difficult. I certainly believe gaming reform is, and must be, an important policy initiative going forward.” The expectation of sustained demand, coupled with strong tax performance, has raised hopes in Harrisburg the industry’s next phase can support both market expansion and a renewed commitment to public-interest programs.