The Pennsylvania Senate is considering Senate Bill 756, a proposal to start taxing and regulating skill games, which have been mostly unregulated in the state for almost ten years.
Skill games have stirred up debate in Pennsylvania over the past few years. But in December 2023, the Commonwealth Court ruled that these games are legal. Right now, the machines aren’t regulated, so business owners don’t pay taxes on the money they make from them.
That said, the company behind many of these games, Pace-O-Matic (POM), has been pushing for regulation. Speaking to
To address the issue, State Senator Chris Gebhard, joined by Senate President Pro Tempore Kim Ward and Senate Majority Leader Joe Pittman, has introduced a plan to officially introduce skill games into the state’s gambling system. Along with Senator Rosemary Brown, they put forward the legislation in January.
Pennsylvania Senate Bill 756 to regulate skill games
SB 756 lays out a plan to put some clear rules around skill games in Pennsylvania. It proposes a 35% tax on the machines, limits each location to a maximum of seven, and sets the minimum age to play at 21.
The bill, which runs 183 pages, is an effort to get a handle on the growing number of these machines across the state. While often compared to slot machines, skill games have been operating without any formal oversight for years.
License fees under the bill vary considerably, with businesses paying as little as $250 and manufacturers facing fees as high as $50,000.
Some of the main points in the bill focus on bringing structure and oversight to the skill game industry in Pennsylvania. The games would be regulated by the Pennsylvania Gaming Control Board, in a bid to add more accountability.
Each business would then be limited to seven machines, and only people 21 and older would be allowed to play. The bill also creates a Skill Gaming Fund to collect tax revenue from these machines, and that money would be split between the state’s General Fund and the Compulsive and Problem Gambling Treatment Fund.
To make sure everything runs fairly and responsibly, the bill includes rules for enforcement, penalties, and regular inspections. Operators would also need to go through background checks, get licensed, and provide financial information. On top of that, the games themselves would have to be tested and certified, with clear information on how they work to help protect players.
‘Skill games support thousands’
Unregulated skill games are undercutting our gaming industry and threatening local jobs, including right here at Presque Isle Downs.
I’m committed to finding a fair, enforceable solution that levels the playing field.https://t.co/DrxG1upYDl
— Senator Dan Laughlin (@senatorlaughlin) May 15, 2025
Posting on X, Pennsylvania Senator Dan Laughlin wrote: “Unregulated skill games are undercutting our gaming industry and threatening local jobs, including right here at Presque Isle Downs.
“I’m committed to finding a fair, enforceable solution that levels the playing field.”
However, speaking to ReadWrite, Mike Barley, POM Chief of Public Affairs, said: “We look forward to working with Pennsylvania Governor Josh Shapiro and lawmakers to pass common sense regulation and fair taxation of the legal skill game industry. We support Senate Bill 626, sponsored by Sen. Gene Yaw, which does just that.
“Skill games help to support thousands of Pennsylvania small businesses, fraternal and volunteer organizations, including VFWs, American Legions and volunteer fire companies.
“Senate Bill 756, by comparison, will devastate these family businesses and nonprofit organizations that count on skill game revenue. This legislation will create the highest tax increase for small businesses and fraternal organizations in Pennsylvania’s long history.
“Passage of this legislation would not only mean struggling locations removing their games because they cannot afford the high tax, but it would also result in the state receiving significantly less in tax revenue than it projects and needs.”
UPDATE: Statement from Pace-O-Matic added on May 20th, 2025.
Featured image: Canva
