Pennsylvania moves to regulate skill games

June 16, 2026 - 23:38

Pennsylvania is taking steps to bring so-called skill games under state control, a move that could reshape the landscape of legal gambling in the commonwealth. These machines, which resemble slot machines but rely on a player's ability to identify winning patterns, have spread rapidly in recent years. They now appear in bars, convenience stores, and truck stops, often operating in a legal gray area.

State legislators are advancing a bill that would establish a regulatory framework for the devices. Under the proposed plan, the Pennsylvania Gaming Control Board would oversee licensing, tax collection, and enforcement. Operators would be required to pay a 16% tax on net revenue, with funds directed toward property tax relief and local law enforcement.

Supporters argue that regulation is long overdue. They say the machines generate millions in untaxed revenue and that oversight will protect consumers from unlicensed operators. Critics, however, raise concerns about gambling addiction and the potential for the devices to cannibalize revenue from the state's licensed casinos, which already pay higher taxes.

The debate comes as skill games have faced legal challenges. The state Supreme Court has ruled that the machines are not illegal slot machines, but the legislature has not yet defined their legal status. This bill aims to settle that question once and for all.

If passed, Pennsylvania would join several other states that have moved to regulate similar devices. The bill is expected to face amendments as it moves through committee, but momentum appears to be building for a final vote later this year.