Skill games might be legalized in Pennsylvania, and it might happen soon. More oversight awaits Pennsylvania’s gambling scene, and the proposed regulation will greatly impact the state’s economy.
Great impact on the state’s economy:
This would help in centralizing a monitoring and control system. Additionally, the tax structure which will be created will bring a few hundred million dollars to the state.
Skill games are different from other games because the same laws that apply to the Commonwealth’s laws and taxes don’t apply to them. The machines are similar to the ones that are used for slot games, but here the outcome depends on the gambling skills of the player.
Senator Gene Yaw, R-Williamsport, commented on this: “There’s obviously a demand for this type of entertainment. There are a lot of these machines out there, somewhere between 20,000 to 70,000, and they’re not being taxed. Why not tax them?”
The legislative memo says that if the authorities approve the legislation, it will regulate the taxes and establish additional revenue for the Commonwealth casinos.
The legislation will benefit the state in terms of both economic impact and reducing the amount of illegal gambling in Pennsylvania. In addition, small businesses from the state will greatly benefit from assigning the extra source of revenue to them.
When placed in the right environment, skill games can be a great solution for many regulated markets, including the Commonwealth. Besides the tax revenue, the regulation of the market will open many new opportunities for job seekers in the area.
For the mission to be successful, the skill video games will have to be connected to a terminal collection and control system. This will help in controlling illegal gambling and problem gambling, ensuring that all required taxes and revenues are paid to the state.
Yaw also commented on taxes that the state would collect: “By taxing them, the state can probably generate in excess of $300 million a year in tax revenue. It’s like we have a winning way, or a winning lottery ticket, here – why not cash it in and take advantage of it?”
There is also a question of accepting political donations. Many Democrats and Republicans have accepted the donations in the past. However, they committed to return all the funds, but House Republican Campaign Committee members and Yaw didn’t want to participate in that.
The law that will regulate skill games is important for both operators and players. Without the law, many lawsuits and game seizures can occur, which negatively impacts all included parties. Only in May last year, police seized skill games twice, and the court ruled out the seizure, and the games were returned soon after the seizure.