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Pennsylvania's Skill Game War Escalates as Casinos and Lawmakers Clash Over Taxes

A high-stakes showdown pits casinos against skill game distributors—with millions in taxes and a Philadelphia ban hanging in the balance. Who will win?

The image shows a man playing a slot machine with the words "Jackpot" on it. He is surrounded by a...
The image shows a man playing a slot machine with the words "Jackpot" on it. He is surrounded by a board with text and pictures of fruits, suggesting that he is playing online casino games.

Pennsylvania's Skill Game War Escalates as Casinos and Lawmakers Clash Over Taxes

Ramona Depares

Ramona has been working in journalism for 15+ years, specializing in entertainment, lifestyle and online gaming news. She was head of media for one of the biggest organizers of gaming conferences, giving her a taste of staying ahead of the curve of online casino and sports betting trends.

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Ramona Depares

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The controversy surrounding skill games in Pennsylvania continued to grow as, during a House GOP committee session, Parx CEO Eric Hausler presented evidence that skill games jeopardize the investments made by casinos like Parx.

Throughout the session Hausler presented a series of testimonials from Pennsylvania residents, each attesting to the benefits that Pennsylvania online casinos & casino resorts like Parx had created within the community, in stark contrast to skill games.

Hausler Earlier Proposed a 54% Tax on Skill Games

The Parx CEO has been one of the most vocal critics of skill games over the past months, continuously lobbying for taxation that he believes should not be less than that levied over slot machine revenue.

Meanwhile, the future for skill games remains unclear. Pace-O-Matic, which is the state's biggest skill games distributor, has already countered the arguments made by Parx in a series of community interviews designed to show the positive impact of skill games in Pennsylvania.

However, this has not stopped the city of Philadelphia from instituting a complete ban on such games, a measure that has earned it a lawsuit. Moreover, even if the Keystone State decides to go in the direction of taxation, consensus appears to be very far from being reached.

State Governor Josh Shapiro's proposal to slap a 42% skill games tax has found a measure of favor among operators, but a 16% tax proposal by Senator Gene Yew has already reached the Gaming Oversight committee.

However, Pace-O-Matic's Chief Public Affairs Officer Michael Barley is sure of one thing - the November 2023 ruling that skill games do not constitute gambling is not going to be overturned any time soon.

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