Miele Manufacturing, responsible for making Pennsylvania skill games, held a 90th anniversary celebration last week, which included a discussion in of regulation for its machines. The company also shared several stories that involves the successes of small businesses because of the added revenue skill games has provided.
The games are currently legal after the Commonwealth Court ruled them as such in December 2023. However, the games are not regulated. There have been several lawmakers who have publicly ed the stance of regulation and taxation of the machines.
One of those includes Pennsylvania Senator Gene Yaw (R-23), who reintroduced a bill with a framework that does both. Yaw was also on-hand at the Miele Manufacturing celebration.
How skill games have helped small businesses in PA
In of skill games legislation, Miele Manufacturing highlighted multiple small businesses that have benefited from the extra income.
Doug Sprankle, of Sprankle’s Neighborhood Market, told the Williamsport Sun-Gazette that adding skill games in 2018 has allowed the expansion of store offerings, the ability to offer healthcare to employees, and give back to the community. The company donated more than $100,000 over a three-day period last October.
Skill games has helped fund volunteer fire departments across Muncy Township. Eric Hoover, state vice president of the Fraternal Order of Eagles, added that the machines have helped the department hire more employees, raise salaries and upgrade equipment.
The Pennsylvania Supreme Court is set to rule on the legality of the games in the near future. Should the court rule the games as illegal, it could be a blow to businesses who have benefitted from the machines. However, momentum on regulation has picked up in recent months.
Yaw comments on skill games debate
Yaw has been in favor of skill games legislation for years. His latest bill calls for a 16% tax on the machines, which is the lowest amongst other proposals.
Yaw is keeping small businesses in mind with a lower tax rate. He argues it would be unsustainable for companies to operate the games at a 52% rate, which is what Gov. Josh Shapiro proposed in his 2025 budget address.
Yaw also backs the technicalities of the game, in which skill is involved to win. He told the Williamsport Sun-Gazette:
“Those are the games that have gone through 11 court cases, and they have been found to not be in violation of the Pennsylvania gaming law.
“Commonwealth witnesses have testified to the importance of this in the scope game, the player has the opportunity to win every time.”
Yaw’s bill is expected to have bicameral , too. Representative Danilo Burgos preparing to sponsor a bill that regulates skill machines.
The state has a lot to sort out, from determining the legality and then the tax rate, which lawmakers are far apart on.