Last month, Pennsylvania lawmakers proposed a skill games tax to help bridge a large budget gap for the coming fiscal year. But unintended consequences of the proposed tax could lead business owners and customers to respond in ways that may undermine the bill’s effectiveness if enacted.
In the words of state Sen. Anthony Williams (D), the General Assembly has found “not a life boat,” but rather “a yacht, if you will, in the budget conversation.” This vessel is Senate Bill 1079, a proposed regulatory framework and $500 per-terminal monthly tax on skill games terminals, gaming machines that don’t just rely on chance and which are popular with small businesses such as taverns, truck stops, and social clubs.

