Legislation will establish framework for skill video games

Legislation soon to be introduced in the state Senate would establish a regulatory framework and taxing structure on skill video games.

Under the bill, games would be required to be connected to a terminal collection and control system that allows the state to monitor transactions and ensure taxes are accrued and paid.

It also would strengthen penalties for those who operate unlicensed and illegal games and gambling devices. Unlicensed and illegal games and devices increase the strain on law enforcement resources, are a nuisance, and do not pay local, state, or federal taxes.

“Pennsylvania’s skill game terminals are manufactured right here in Lycoming County, and the finished products exist in fraternal clubs, veterans’ organizations, and taverns, as well as other local businesses throughout the Commonwealth,” said state Sen. Gene Yaw (R-Bradford), who will introduce the bill. “Skill games are a piece of the small business economy in our state, and it’s time we recognize the benefits of this emerging industry and offer regulatory support so that we can ensure it flourishes – safely and responsibly.”

Approximately $300 million in annual tax revenue will immediately be generated upon passage of the legislation, according to experts’ estimates.

Skill video games provide small businesses with supplemental revenue.