HARRISBURG – State Sen. Gene Yaw (R-23) today announced he will soon introduce legislation that will establish a regulatory framework and taxing structure on skill video games in the commonwealth, with a portion of the generated revenue being directed to the state’s Clean Streams Fund.
In a memo circulated to Senate members, Yaw explained the legislation could generate an estimated $300 million in immediate annual tax revenue.
“Skill games are a piece of the economy in our state. They cannot and should not be ignored,” Yaw said. “With each passing day, Pennsylvania is missing out on significant additional revenue for important programs like the Clean Streams Fund. It is vital that the legislature take the necessary steps to regulate this industry, capitalizing on substantial earnings and supporting the backbone of Pennsylvania: our small businesses.”
Under Yaw’s proposal, all games will be required to be connected to a terminal collection and control system that allows the commonwealth to monitor all transactions and ensure that all taxes are accrued and paid. The legislation will strengthen penalties for those who operate unlicensed and illegal games and gambling devices and includes a valid ID requirement to play. Further, Yaw’s measure will not allow for gaming to be an establishment’s primary source of income, nor will it allow for more than a limited number of terminals per business location.
Yaw’s initiative will direct sole regulatory authority over the sale, distribution and use of a skill video game system to the Pennsylvania Department of Revenue. Yaw says this is based on an unbroken series of favorable court decisions, including a unanimous decision by the Commonwealth Court declaring the games skill based. Enforcement will be carried out by the Bureau of Liquor Control Enforcement (LCE).
Pennsylvania’s landmark Clean Streams Fund addresses agricultural conservation, nutrient management, clean water procurement, stormwater management and acid mine drainage and has helped Pennsylvania gain momentum in meeting its goals for reducing pollution to the Chesapeake Bay. Its establishment in 2023 coincided with creation of the Agricultural Conservation Assistance Program (ACAP), which has become one of the most successful initiatives of its kind.
For more state-related news and information, constituents can visit Senator Yaw’s website at www.SenatorGeneYaw.com or follow him on Facebook and X @SenatorGeneYaw.
CONTACT:
Elizabeth Weitzel
717-787-3280