Pennsylvania Casinos Advocate for Equal Taxation on Skill Games

A dozen casinos in Pennsylvania have turned to the highest court in the state, advocating for a more equitable taxation scheme. They either want the tax rate applied to slot games to be imposed on skill games or for the tax to be declared unconstitutional altogether. Presently, land-based operators in Pennsylvania pay a hefty tax rate on their slot machine revenue, which ranges between 48% and 54%. On the other hand, skill games—although prevalent with tens of thousands of devices spread across the state—remain untaxed and unregulated.

The American Gaming Association estimates nearly 70,000 skill game terminals are operating in Pennsylvania, found in various venues from bars and restaurants to convenience stores and gas stations. This unchecked expansion hasn’t gone unnoticed, as 12 out of the 17 casinos in Pennsylvania have backed the petition filed with the state Supreme Court.

The American Gaming Association estimates nearly 70,000 skill game terminals are operating in Pennsylvania, found in various venues from bars and restaurants to convenience stores and gas stations. This unchecked expansion hasn’t gone unnoticed, as 12 out of the 17 casinos in Pennsylvania have backed the petition filed with the state Supreme Court. These casinos argue it’s unfair for licensed casinos to remit nearly half of their slot machine proceeds while skill games contribute nothing in taxes. Major industry players like PENN Entertainment and Caesars Entertainment have joined the legal push, with support from Harrah’s Philadelphia, Rivers Casino Pittsburgh, Rivers Casino Philadelphia, and several other prominent establishments.