Pennsylvania Casinos Ask Court to Force State to Tax Skill Games Found in Stores Equally to Slots
In a move that could have far-reaching implications for the state’s gaming industry, Pennsylvania casinos are asking the court to force the state to tax skill games found in stores equally to slots. The dispute stems from the state’s decision to tax slot machines at a much higher rate than the skill games, which are classified as “amusement devices” and have been popping up in convenience stores, bars, and other locations across the state.
The Pennsylvania Gaming Control Board estimates that there are thousands of these skill games in operation, generating millions of dollars in revenue each year. However, because they are not considered traditional casino games, they are subject to a much lower tax rate than slots.
This discrepancy has not gone unnoticed by the state’s casinos, who argue that the skill games are essentially operating as unregulated slot machines and should be subject to the same tax rate. In a lawsuit filed in Commonwealth Court, the casinos are seeking to have the tax rate for skill games increased to match that of slots, which currently stands at 54%.
The casinos argue that the lower tax rate for skill games gives them an unfair advantage over traditional casinos, which are subject to much higher taxes and regulatory oversight. They also contend that the skill games are cutting into their revenue and hurting the state’s gaming industry as a whole.
The state, however, maintains that the skill games are not the same as slots and should not be taxed at the same rate. In a statement, the Pennsylvania Department of Revenue said that the skill games are subject to a different tax structure because they are considered amusement devices and not traditional casino games.
The outcome of the lawsuit could have major implications for the state’s gaming industry, as well as for the thousands of businesses that currently offer skill games. If the court rules in favor of the casinos, it could mean a significant increase in taxes for these establishments and potentially even lead to their closure.
For now, both sides are waiting for the court to make a decision. In the meantime, the debate over the taxation of skill games in Pennsylvania continues to rage on, with no clear resolution in sight.
