Skill Game Tax Proposed By Pennsylvania Lawmaker

At a rate of 52%, gross revenue on slots, including online video slot, is already being taxed in Pennsylvania. If Pennsylvania Rep. Russ Diamond has his way, the state will soon start taxing online casinos on gross revenue earned on skill game machines. Skill games machines include popular games like Baccarat, Blackjack, and poker, games where players get involved in a decision-making process.

Rep. Diamond has stated that he intends to present a new bill on the floor of Congress, a bill calling for a tax of 20% on such games. He is also ready to proposed a decrease of 2.1% on the tax being charged on online video slots. It's interesting that he is combining these two provisions in the same bill, showing a bit of concern for budget minded Pennsylvanian gamblers who tend to prefer simple games of chance like video slots.

Why Propose ThisBill Now?

With the midterm election coming the first week of November, there is plenty of motivation for Congress members to answer the calls of their constituents. It was only one election cycle ago when many politicians were promising their voters that something would be done to get taxpayers tax relief on property taxes.

To date, the issue has largely been ignored. Now would seem to be the right time to put the issue front and center in front of voters. There is an October 13 deadline looming to get such legislation passed. The tax relief is needed in the state where property taxes have proven to be a burden and hot issue among taxpayers.

When questioned about his bill, Diamond told reports:

“Every time I talk about property taxes, people complain about not seeing the relief from casinos promised by politicians more than 20 years ago.

“This set of bills will increase property tax relief for 96% of Pennsylvania’s homeowners and deliver it directly into their hands. The amount of relief they receive will grow in direct proportion to the annual growth of all forms of legal gaming in the commonwealth.”

Who would Feel the Effects of Such a Law?

Of course, homeowners would theoretically benefit the most from the passage of such a bill. However, there are other stakeholders that will also be affected.

First, businesses that sponsor said machines would feel the pinch of losing 20% of their gross revenue. Business that could get hit with this tax include local bars, groceries, gas stations, and convenience marts. That's fine in the minds of citizens and casinos that are not fond of the existence of these machines.

To make this bill slightly more attractive, Diamond has stated that the revenue used to support problem gambling initiatives would double with the additional tax revenue.

There is an urgency to get this bill done by the October 13 deadline because that's the day skill game machines would become illegal. With a little more than a month until that deadline, Diamond will be pushing hard to get his collogues to quickly address the matter.