Senator Chris Gebhard's Proposed Skill Game Tax: A Controversial Compromise
Pennsylvania Senator Proposes Hefty Tax of 35% on Contentious Skill-Based Games
In the heart of Pennsylvania politics, Senator Chris Gebhard has stirred up a hornet's nest with his latest proposal - a whopping 35% tax on skill games. This bill, Senate Bill 756, aims to put an end to the ongoing debate surrounding these contested devices in the state.
This proposed legislation seeks to establish a regulatory framework for the hundreds of unregulated skill games currently operating within Pennsylvania. The Pennsylvania Gaming Control Board would be responsible for overseeing these devices, imposing the 35% revenue tax.
Sen. Gebhard's bill presents itself as a middle ground between competing bills. Governor Josh Shapiro's budget plan advocated for a tax rate of 52%, while Senator Gene Yaw's Senate Bill 706 suggested a more lenient 16%.
The Tax Rate Tightrope: Revenue vs. Survival
The 35% tax rate is intended to yield substantial revenues for the state without driving skill game operators into the ground. Gebhard emphasized that this rate is not set in stone, stating, "We've still got a ways to go before we land on a final figure."
However, the proposal has been met with criticism from various quarters. Casino stakeholders demand stricter controls and higher taxes, claiming that skill games reap the benefits of gambling operations without facing the same level of regulatory scrutiny. On the other hand, small business advocates voice concern that a 35% tax could dwindle already meager profit margins.
Legal Grey Areas and the Supreme Court
Complicating matters further is a pending Pennsylvania Supreme Court decision on the legality of skill games. This decision could reshape the entire debate, either legitimizing the current unregulated market or necessitating a complete legislative overhaul.
Despite the legal uncertainty, companies like Pace-O-Matic (POM) continue to advocate for regulation. They argue that official approval would allow the state to reap tax revenues while dispensing with illegal machines.
Small Business Impact and Support
Some small business owners have expressed their support for skill games, attributing them to helping keep their businesses afloat. Geeta Patel, owner of Roxborough News Shop, stated, "Skill games saved us – they enabled us to retain our employees, continue serving our community, and stay in business."
As Pennsylvania lawmakers work towards a budget deal in the coming weeks, it remains to be seen whether Gebhard's middle-ground approach can resolve the skill game controversy. The ongoing debate reflects broader challenges in regulating Pennsylvania's lucrative, yet largely unregulated, skill game market while preserving essential revenue for local organizations.
Enrichment Data:- The tax rate under Senate Bill 756 is initially proposed at 35%, with reports of an effective tax rate reaching as high as 40% due to additional fees or regulatory costs.- The legislation would limit the number of machines per establishment to seven, restrict placement to businesses holding a Pennsylvania liquor license, and prohibit anyone under 21 from playing.- Opposition to SB 756 comes from small businesses, fraternal organizations, and industry lobbyists, who argue that the high tax rate and restrictive placement requirements could jeopardize critical income for local bars, taverns, Veterans of Foreign Wars (VFW) posts, American Legions, and volunteer fire halls.- Alternative proposals, such as Senator Gene Yaw’s SB 626, have been suggested to implement more reasonable regulations and lower tax rates.- As of June 2025, Republican leadership in the Pennsylvania Senate generally supports SB 756, but the bill faces strong pushback and ongoing legislative negotiation. No final vote has been reported, and the bill has not yet become law. The controversy reflects broader challenges in regulating Pennsylvania’s lucrative—but largely unregulated—skill game market while preserving critical revenue for local organizations.
- The ongoing debate in Pennsylvania's policy-and-legislation sphere revolves around Senator Chris Gebhard's proposed 35% tax on skill games, as mentioned in Senate Bill 756, which aims to regulate unregulated skill games and generate substantial revenues without driving operators into bankruptcy.
- The 35% tax rate proposed in Senate Bill 756 is a controversial compromise, facing criticism from various parties including small business owners, casino stakeholders, and industry lobbyists, who argue that the high tax rate and restrictive placement requirements could jeopardize critical income for local bars, taverns, Veterans of Foreign Wars (VFW) posts, American Legions, and volunteer fire halls.
