Pennsylvania's top gambling regulator calls on lawmakers to address skill gambling
Top officials with the Pennsylvania Gaming Control Board (PGCB) are calling on state lawmakers to address the debate over skill games.
Skill slot machines can still be found in countless bars, restaurants, gas stations and grocery stores across the commonwealth. There are even independent brick-and-mortar retail stores dedicated to selling the controversial gaming gear.
PGCB Executive Director Kevin O'Toole recently testified before the Pennsylvania Senate Democratic Policy Committee, where he expressed his view that lawmakers need to step in and decide whether to legalize the required machines , regulate or prohibit. But O'Toole stressed the gray area they currently find themselves in is not in the best interests of the country or consumers.
The legal framework for games of skill is certainly not clear and is not regulated by law. In order to resolve this uncertainty, a legislative decision must be made somehow," O'Toole said.
Pennsylvania Lottery officials and state-licensed commercial gaming industry representatives say skill slot machines are stealing revenue from their tightly regulated and taxed businesses. Opponents argue the games resulted in an estimated $250 million in lost tax revenue that lotteries and casinos would have suffered if skill games hadn't taken off in the Keystone State.
Games of skill remain unregulated in Pennsylvania.NO CONSUMER PROTECTIONS, such as guaranteed minimum payment rates or guarantees that minors cannot use the machines. Income from games of skill is also not subject to state taxes. Instead, funding is distributed among machine manufacturers, route distributors, and host companies.
Need to reach consensus
Skill games look, sound, and function like old-school slot machines, but differ in that the customer's gaming behavior affects the outcome. This ability element usually only requires the player to identify a winning line. The slot machine does this automatically for the player.
Skill elements, advocates and at least one state judge reasoned to exclude machines from regulation under the Pennsylvania Gaming Act because the law only regulates games of chance. Federal Court Judge Patricia McCullough said in 2019 that gambling laws cannot regulate such machines, so law enforcement should stop seizing them.
However, the PGCB is still prosecuting the matter as it considers the machines to be gambling and gambling. Supporters of skill games say the resulting revenue is vital for small businesses, allowing them to better keep pace with inflation and rising labor costs.
O'Toole insists state lawmakers must take action.
It's entirely up to the General Assembly whether to legalize, tax or ban these machines," O'Toole said.
But the state's top gambling regulator said he wants lawmakers to amend gambling laws to allow the PGCB to regulate their operations when seeking approval for skill games.
“The board’s position is that if the General Assembly decides to legalize and regulate slot machine gaming, the regulation of that activity should fall within the jurisdiction of the board, as the board is the only agency with the capacity and experience to regulate slot machine gaming and the regulation of machine activities. .pleased O'Toole.
Legislative Efforts
State Sen. Gene Yaffe (R-Lycoming) introduced a measure earlier this year to create a regulatory framework for games of skill.
The regulations set a one-time licensing fee of $1 million for skill game manufacturers/distributors and an annual fee of $250 per sponsoring company. The bill also imposes a 16% tax on income from games of skill.
Yaw's measure — Senate Bill 706, the Skilled Video Gaming Act — was introduced in May but stalled in the Community, Economic and Recreation Committee.
State Sen. Amanda Cappelletti (D-Montgomery) believes the state is taking the opposite approach and should prosecute and ban skill games. Cappelletti said she is drafting a bill that would make skill games illegal in the Commonwealth.
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Source: www.casino.org
