Sen. Gene Yaw (R-23)
How do you intentionally cut the income of tens of thousands of Pennsylvanians? By undermining an industry that’s become essential to local businesses, veterans’ organizations, fraternal clubs and small businesses across the commonwealth.
For nearly two decades, skill games have been part of Pennsylvania’s local fabric. They help keep neighborhood establishments open, support VFWs and American Legions, fund volunteer fire companies and provide a financial lifeline for organizations and social clubs. In all, thousands of Pennsylvanians rely on the supplemental income from these games, and conservative estimates suggest the industry touches 30,000 to 40,000 livelihoods.
Now, the future of these games is more uncertain than ever. A recent Pennsylvania Supreme Court decision determined skill games fall under the state’s existing gambling laws, declaring the games illegal by October 13 if lawmakers fail to establish a regulatory framework.
At the same time, proposals to address this are being introduced with tax rates so high they could drive skill games out of business entirely. That’s why I introduced Senate Bill 1079 along with Sen. Anthony Williams, which would regulate legitimate skill games, enact a fee-based revenue system, eliminate the bad actors and protect these organizations from devastating taxes they can’t afford.
In 1819, Chief Justice John Marshall wrote “the power to tax is the power to destroy.” Proposed taxation-based models for skill games illustrate this perfectly: high rates that ignore real-world impacts and would crush thousands of jobs and devastate organizations that depend on supplemental income to survive.
If elimination of the industry is the goal, onerous taxation would accomplish it. Businesses will close, jobs will disappear and organizations that rely on them will be left scrambling to make up the difference. The state would also lose the revenue it could have collected from a regulated, viable industry.
But Senate Bill 1079 offers a better path, one that regulates without destroying.
Four years ago, a predecessor to Senate Bill 1079 was ready for action, but legislative delays stalled progress. Those delays have likely cost Pennsylvania about $1 billion in lost revenue. This is money that could have supported services, communities and local needs without raising taxes.
Failing to act now would only deepen that self-inflicted wound.
Skill games aren’t just entertainment. They’re a lifeline. For many Pennsylvanians, they are a paycheck and health benefits. For small businesses, they can mean the difference between keeping the doors open and closing them. For veterans’ organizations, fraternal clubs and volunteer organizations, they provide revenue that helps fund their missions and serve their communities.
Senate Bill 1079 is fundamentally a bill about jobs. It protects the manufacturers who build these machines and the workers who depend on supplemental revenue from them. It supports community organizations, strengthens small businesses and generates significant revenue without burdening ordinary taxpayers.
Pennsylvania has already lost too much. We can’t afford another delay. Senate Bill 1079 deserves immediate action. For the sake of tens of thousands of Pennsylvanians, let’s not make this self-inflicted wound any deeper.
Sen. Gene Yaw was elected to represent the 23rd Senatorial District consisting of Bradford, Lycoming, Sullivan, Tioga and Union counties.