Gov. Josh Shapiro included Pennsylvania skill games regulation and a tax structure in his FY 2025/2026 budget address on Tuesday. However, his plan is slightly different from what he proposed last year.
The machines have been operating in a gray area throughout the Keystone State for years. Though the Commonwealth Court ruled the games as legal games of skill in December 2023, the machines are still unregulated.
Even the manufacturers of the games, Pace-O-Matic (POM), has been seeking regulation for years. However, Gov. Shapiro proposed a 52% tax on the revenue, which nears the price Pennsylvania casinos are paying on slot revenue.