Dear Business Owner,
Recently Governor Josh Shapiro delivered his annual budget address before the General Assembly. The taxation and regulation of skill games were again included in the governor’s budget proposal. Unfortunately, the Governor is proposing a 52% tax rate on skill game profits that would make the industry unprofitable.
Our statement to lawmakers is below. The bottom line is that the current proposal is a nonstarter. The time is now to make your voice heard!
Contact your legislators today. Tell them how skill games support your business and explain that a high tax rate will hurt you. Give them specifics of how you put skill game revenues to work, whether that is supplemental income to:
- Hire Employees
- Increase wages and benefits
- Make location improvements
Additionally, please remind legislators that you currently pay all applicable taxes. The casino lobbyists have pushed a narrative that businesses who operate skill games do not pay taxes. As you all know – that is not true. Remind them that voting for a high tax rate on skill games will harm your business.
We will have to become much louder in our efforts to fight for our industry’s survival in the coming days, weeks, and months.
Statement from Pace-O-Matic Regarding Governor’s Budget Address
“Pace-O-Matic remains eager to work with the governor and legislature to negotiate a fair tax rate and regulatory structure for skill games.
We are disappointed at the high tax rate on the games the governor proposes. The governor’s proposed 52% tax rate will hurt the thousands of Pennsylvania bars, restaurants, fraternal clubs, volunteer fire companies, VFWs, and American Legions that count on the supplemental income from skill games. At that high tax rate, many locations cannot afford to keep the games.
At a commonsense 16% tax rate, we estimate skill games could provide $250 million to the state in the first year. That projection will significantly drop under the rate included in the governor’s budget because many locations won’t be able to afford it. This is counterproductive because the tax is intended to help the state with its financial needs.
We also take exception with the governor making any connection between legal skill games and lottery sales. Research has shown that the only link between the two is that locations say their lottery sales go up when they also operate legal skill games.
Pace-O-Matic, Pennsylvania small businesses and fraternal clubs, players, and charitable organizations have led the fight to pass legislation to regulate and tax skill games for several years. Additionally, POM’s Pennsylvania Skill games have been ruled legal games of skill by several courts, including the Pennsylvania Commonwealth Court.
While we know the proposed tax rate is higher than the industry can sustain, we stand ready and willing to discuss these issues with the General Assembly and the Shapiro Administration.”
We will continue to keep you updated. In the meantime, please contact your legislators using the link above.
Sincerely,
Tom DeLeo
Owner, DeLeo Games Inc.