How Corruption Is Keeping Skill Games Untaxed in Pennsylvania
The Core Problem:
Skill games are gambling machines found in gas stations, VFW halls, and other businesses.
They are completely untaxed and largely unregulated in Pennsylvania. Taxing them like casinos could generate over $300 million for public transit, schools, and other key programs. But manufacturers are spending millions on lobbying and campaign contributions to protect their profits and avoid regulation.
Campaign Contributions
Follow the Money
Senator Gene Yaw (R-Lycoming), who has championed skill games in the State Senate, received $33,000 last year alone from the Operators for Skill PAC for a race that he won by 50 points.
Once House Rep. Matt Bradford (D-Montgomery) became House Majority Leader, his campaign contributions spiked, including significant support from the skill games industry.
In money that we can see (that is, money given directly to candidates), Operators for Skill PAC, which is linked to skill game manufacturer Pace-O-Matic, has spent more than $1.7 million dollars on nearly 700 contributions to candidates.
Retaliation from the Industry
When Senators Chris Gebhard and Frank Farry attempted to tax and regulate the industry, the industry retaliated; they funded independent expenditures, including door-knocking campaigns and flyers targeting their constituents.
The Political Payoff
Despite clear evidence of public benefit, skill games remain untaxed and unregulated, a direct result of aggressive industry lobbying and political pressure. While the issue is being debated in the current budget cycle, industry lobbying remains a major roadblock to reform.
The Human Cost
Each year these machines remain untaxed is a missed opportunity to invest in public services Pennsylvanians desperately need, including healthcare, public education, stronger infrastructure, and public transit.
Taxing skill games at the same rate as games in casinos would provide more than $300 million each year.
If we want a government that works for us, not just corporate interests, it's time to demand change:
Ban gifts to lawmakers from lobbyists and billionaires. Pennsylvania is 1 of 3 states without one of these commonsense laws.
Set real limits on campaign contributions to stop people from buying favorable policies. Our legislators should work for us, not just the highest bidder.
If our politicians simply taxed and regulated industries like skill games, they could pay for publicly-funded elections and never have to rely on corporate support to win their seats again.