Pennsylvania casinos are making a bold plea to state lawmakers to impose taxes on skill games, a move that could potentially bring in millions of dollars in additional revenue for the state.
In a recent letter sent to Gov. Tom Wolf and legislative leaders, the Pennsylvania Gaming Association, which represents the state’s 12 casinos, argued that the proliferation of skill games has become a serious threat to the state’s regulated gambling industry. The letter stated that these unregulated games are cutting into the casinos’ profits and hurting their ability to generate revenue for the state.
Skill games, which are typically found in bars, restaurants, and convenience stores, operate under a legal loophole that allows them to exist without paying any taxes to the state. Unlike slot machines and other casino games, skill games do not require a gaming license and are not subject to the same regulations and oversight.
The casinos are now calling on lawmakers to level the playing field by imposing a tax on skill games, similar to the taxes that they themselves pay on their gaming revenue. The association argued that this tax would not only help to protect the state’s regulated gambling industry, but also provide much-needed revenue for state programs and initiatives.
According to the association, the lack of regulation of skill games has also raised concerns about the potential for money laundering, fraud, and other illegal activities. By bringing these games under the state’s regulatory umbrella and imposing taxes on them, the casinos believe that the state can better control and monitor their operations.
The call for a tax on skill games comes at a time when the state is facing a significant budget shortfall due to the economic impact of the COVID-19 pandemic. Lawmakers are currently considering various revenue-raising measures, including potential tax increases and spending cuts, to address the state’s financial challenges.
The Pennsylvania Gaming Association’s proposal to tax skill games is likely to spark a heated debate among lawmakers, as well as the operators of these games and other stakeholders. However, the casinos are hopeful that their plea will be taken seriously and that action will be taken to address what they see as a dangerous and unregulated threat to the state’s gambling industry.
As the debate over the taxation of skill games continues, all eyes will be on state lawmakers to see if they will take action to protect the interests of Pennsylvania’s regulated casinos and ensure that all gaming operations are held to the same standards of accountability and responsibility.
