Posted: | January 15, 2025 02:50 PM |
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From: | Senator Chris Gebhard and Sen. Kim L. Ward, Sen. Joe Pittman, Sen. Rosemary M. Brown |
To: | All Senate members |
Subject: | Taxation and Regulation of Skill Gaming Machines |
As each of us has seen in our respective districts, unlicensed gaming machines have proliferated throughout the Commonwealth. We have heard from our social clubs, fraternal organizations, and small business owners about the positives this new revenue source has created as the result of operating these machines. However, we have also heard about the potential harms associated with the operation of these machines in the current unregulated environment. Without a regulatory structure in place, the Commonwealth cannot determine the number of machines that are operating across Pennsylvania, whether appropriate taxes are being remitted, and whether the payouts offered by these machines are fair to the player. Currently, these devices lack any enforceable age restriction and have no safeguards to prevent or address problem gaming issues and addiction. Furthermore, a large number of these machines operate in locations that lack security, surveillance, or on-site employees—rendering these cash-filled machines an attractive target for criminals and a dream for organized crimes’ money laundering efforts. Recently, Commonwealth Court decisions have determined these machines are not captured under the state gaming law like Casino style slot machine gaming terminals. It is imperative that the General Assembly act now to protect our constituents and our communities and reduce the strain on state and local law enforcement. I believe we can accomplish this goal while also supporting small businesses, social clubs, and fraternal organizations with a new and reliable revenue stream. Therefore, we intend to introduce legislation authorizing the Pennsylvania Gaming Control Board to license and regulate a limited number of machines for operation at certain liquor-licensed and lottery-licensed establishments across the Commonwealth. Our legislation will further ensure that fair and appropriate taxes are collected. Please join us as a cosponsor to formulate a solution on this important issue. |