Legislation recently introduced in the state Senate would establish a regulatory framework and taxing structure on legal skill video games within Pennsylvania.
Senate Bill 706, the Skill Video Gaming Act, would give the Pennsylvania Department of Revenue sole regulatory authority over the sale, distribution, and use of a skill video game system. The Bureau of Liquor Control Enforcement would have enforcement authority.
The bill also would require an initial license application fee of $250 for establishments, $25,000 for operators and $1 million for skill video game distributors. There would be a yearly renewal fee.
There would be a limit on the number of machines per establishment, and players would need a valid ID.
All games would be required to be connected to a terminal collection and control system to allow the state to monitor transactions and ensure that taxes are accrued and paid.
There would be a 16 percent tax on legal skill video games. Of the taxes collected, half would be deposited into the General Fund, 22 percent would be proportionally distributed to counties and municipalities based on their respective gross profit, and 28 percent would be used for liquor control enforcement.
Finally, the bill would strengthen penalties for those who operate unlicensed and illegal games and gambling devices.