The Call to Ban Pennsylvania Skill Games in the PA Gaming Market

The controversy surrounding Pennsylvania skill games has reached a boiling point, with legislators taking a definitive stance on their future. State Senator Amanda Cappelletti, representing Delaware and Montgomery counties, and State Representative Mark Rozzi from Berks County jointly introduced legislation to ban skill games in the Keystone State completely. This legislative move has stirred the pot in an already contentious debate over the place of skill games in Pennsylvania's diverse gambling landscape.

Skill games have been a subject of debate in Pennsylvania for several years. As with any contentious issue, there are staunch proponents on both sides. The skill games industry touts their offerings' entertainment value and skill-based nature, while opponents claim they lack appropriate oversight and regulation. Legislators, consumers, and the regulated gambling industry have all entered the fray, providing valuable insights into the complex landscape of skill games.

State Senator Amanda Cappelletti and Representative Mark Rozzi are the most recent representatives to weigh in on the skill games debate. They join the legislators calling for an outright ban on these games. Rozzi's legislative efforts, currently seeking co-sponsors, align with Senator Cappelletti's Senate Bill 969, which sets the stage for what could be a pivotal moment in the skill games saga.

The call for banning skill games in Pennsylvania is multifaceted, touching on several key issues that have garnered increasing attention and concern:

Consumer Protection: The primary argument against skill games is inadequate consumer protection. Skill games often operate in unregulated gray areas, posing risks to consumers. Unlike the state's regulated gambling industry, these games do not adhere to the same stringent standards for player safeguards, age restrictions, or responsible gaming practices.

Revenue Diversions: Skill games have faced accusations of diverting revenue streams from the Pennsylvania Lottery programs, which support various initiatives benefiting senior citizens. The belief is that these games siphon off funds that could be used for critical programs, including property tax relief, support for the racehorse development industry, and local economic development efforts.

Crime Increase: It is suggested that counties where skill games are present experience increased criminal activities. Whether this is a direct or indirect result of the games' presence is still debatable, but it remains a concern.

As with any hotly debated issue, some stakeholders argue in favor of retaining skill games with proper regulation. The proponents of regulation over prohibition advocate for a middle-ground approach that ensures consumer protection and revenue contributions to the state.

State Senator Gene Yaw, a Republican representing District 23, is among those who advocate for the regulation of skill games. In response to the growing controversy, Senator Yaw introduced Senate Bill 706. This bill outlines a tax framework enabling the legal operation of skill games. Yaw's proposal includes the following key elements:

• A 16% Tax: The bill proposes a 16% tax on the revenue generated from legal skill games.
• Revenue Distribution: Of the 16% tax revenue, 50% would be allocated to the state's General Fund, with the remaining 50% distributed proportionally to individual counties and municipalities based on their respective gross profits.
• Enforcement Funding: A portion of the revenue generated would be allocated to the Bureau of Liquor Control Enforcement (BLCE) to support enforcement efforts.
  Senator Yaw's proposal suggests that regulated skill games could become a significant source of immediate tax revenue, with estimates pointing to potential annual revenues of approximately $300 million.

As the legislative wheels turn, Pennsylvania skill games continue to operate within the state, offering consumers a range of skill-based experiences. However, their future remains uncertain, as the decision on their legality rests with the Pennsylvania Commonwealth Court.

The Department of Revenue (DOR), the Pennsylvania Gaming Control Board (PGCB), and six Pennsylvania casinos have challenged the legal status of skill games. Their appeal seeks to overturn a previous Supreme Court ruling, which has, in turn, been remanded back to the Commonwealth Court.

The court's forthcoming decision will undoubtedly significantly impact the future of skill games in Pennsylvania. The controversy surrounding skill games has raised vital questions about consumer protection, revenue distribution, and the potential impact on existing gambling establishments.

As the Pennsylvania Commonwealth Court inches closer to a verdict, all stakeholders will eagerly await the decision, from legislators and gaming operators to consumers and the broader public. As Pennsylvania grapples with the dilemma surrounding skill games, the path forward may lead to comprehensive regulation, an outright ban, or the status quo.

Regardless of the outcome, the debate over skill games is a testament to the dynamic nature of the state's gambling industry and the ongoing efforts to balance consumer interests with state revenues.