A new legislative proposal in Pennsylvania seeks to establish regulations for skill games, incorporating consumer safeguards such as loss limits, play restrictions, and local governance. Currently, this gaming sector operates outside the state's regulated framework, prompting lawmakers to consider alternative solutions.
Skill game machines, often found in convenience stores, bars, and gas stations, continue to function without any state oversight. This lack of regulation has led to ongoing disputes among the skill game industry, legislators, and licensed gaming operators.
Representative Ben Waxman (D-Philadelphia) is circulating a memo to gather co-sponsors for a legislative concept aimed at regulating these devices while ensuring player protections and local control, as reported by Play Pennsylvania.
The proposed legislation would mandate that all legalized skill games connect to a centralized monitoring system managed by the Pennsylvania Gaming Control Board. This system would integrate these machines into the existing oversight framework for casino gaming, thereby enhancing transparency in a sector that currently lacks regulation.
The memo outlines consumer protection measures similar to those found in Pennsylvania's online casinos and sportsbooks. These measures include restrictions on game speed, mandatory breaks, daily loss limits, and a ban on misleading design elements. Additionally, it proposes expanding Pennsylvania's self-exclusion program, which currently applies to online and retail gambling, to cover skill game players as well.
Furthermore, the framework addresses where skill games can be situated, suggesting limitations or outright bans on machines in gas stations and convenience stores. Local municipalities would have the authority to restrict or prohibit skill games in their areas, allowing them to decide on the availability of these games within their communities.
The proposal also includes a plan to allocate a portion of the revenue generated from skill games to initiatives aimed at treating and preventing problem gambling. As access to gaming options expands in Pennsylvania, lawmakers continue to evaluate funding mechanisms for responsible gambling programs.
Although the memo has not yet been formally introduced as a bill, it marks an initial step toward garnering legislative support.
For several years, Pennsylvania lawmakers have debated the status of skill games without reaching a consensus. Previous proposals have included options for legalization with taxation, fee structures, and outright bans, with discussions often focusing on tax rates, oversight mechanisms, and comparisons between skill games and traditional slot machines.
Additionally, Representative Burgos has introduced another bill this year that also aims to generate fees.
In his memo, Waxman described the proposed approach as a compromise in ongoing legislative discussions, emphasizing the importance of consumer protection in any regulatory framework. “If skill games are going to be regulated, they should be designed to minimize harm,” Waxman stated.