State Representative Ben Waxman (D-Philadelphia) has put forward the Skill Game Consumer Protection Act, intending to oversee the unregulated skill-game market in Pennsylvania.
This legislative move comes amid increased scrutiny of the industry. On April 8, Attorney General Dave Sunday announced a $5 million forfeiture and the closure of two gaming companies that admitted to felony corrupt organization charges.
Officials revealed that these businesses were running illegal slot machines masquerading as skill games, prompting stronger demands for clearer regulations.
Waxman’s initiative seeks to bridge the divide between Pennsylvania’s regulated casino industry and the approximately 70,000 skill-game machines currently found in bars, restaurants, and retail locations across the state.
“If skill games are to be regulated, they must be designed to mitigate harm,” Waxman stated, as reported by PlayUSA. “They present an increased risk to vulnerable groups due to their easy access and rapid gameplay.”
The proposed legislation would mandate centralized oversight by the Pennsylvania Gaming Control Board through a required tracking system. It would also introduce casino-like protections, including limits on gameplay speed, mandatory breaks, and caps on daily losses.
Additionally, it aims to broaden the state’s gambling self-exclusion program to encompass all skill-game terminals and prohibit these machines from operating in gas stations and convenience stores.
This proposal coincides with Governor Josh Shapiro's plan to impose a 52% tax on skill games in his 2026–27 budget, aligning it with the tax rate for casino slot machines. State officials estimate that this measure could generate around $766 million annually for education and social services.
Other legislative proposals are also being considered, each taking different approaches to taxing skill games. SB 626, introduced by Senator Gene Yaw, suggests a lower 16% tax to support small businesses in the industry. Conversely, SB 756 by Senator Chris Gebhard proposes a 35% tax rate as a compromise to generate revenue. Meanwhile, HB 2046 from Representative Danilo Burgos would implement operator fees while lowering taxes on Category 4 “mini-casinos.”
The Pennsylvania Supreme Court is anticipated to make a ruling this spring on whether skill-game machines are classified as illegal gambling or legitimate skill-based games.
If the court determines that these machines are illegal, Waxman’s bill could pave the way for their legalization under stringent consumer protection and transparency standards that align with existing casino regulations in the state.