Pennsylvania Supreme Court Ruling on Skill Games Prompts Legislative Debate on Regulation and Taxation
In June, the Pennsylvania Supreme Court ruled that games of skill are to be classified as slot machines, mandating their regulation under Pennsylvania’s Gaming Act and Crimes Code. This decision requires businesses operating these machines to either remove them or ensure compliance with the new regulations. The Court has provided a 120-day window, until October 13, for the state to establish a regulatory framework. Currently, there is limited legislative progress, with small groups from the House and Senate reportedly in discussions. If no legislative action is taken by the deadline, state police and liquor control authorities could seize the machines, which are prevalent across the state in tens of thousands. The state is also considering various taxation proposals for these machines, ranging from 13% to 52%, with the higher end matching the tax rate for casino slot machines. Additionally, proposals for annual licensing fees and one-time installation fees are being debated. 
