Pennsylvania Skill Games Thrive Amidst Casino`s Record-Breaking Year
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Pace-O-Matic (POM), the creator of Pennsylvania Skill games, is applauding the Pennsylvania Gaming Control Board (PGCB) and state casinos on a year of unprecedented success. November 2024 saw a record-breaking $562,368,782 in revenue for casinos, marking another month of surpassing 2023's figures. This trend has continued throughout the year, with November's revenue exceeding the previous November's by a significant 26%.
This surge in revenue stems from various sources, including slot machines, table games, internet gaming, sports wagering, fantasy contests, and video gaming terminals (VGTs). While casinos celebrate these impressive financial gains, it's important to acknowledge the vital role of legal skill games in supporting small businesses, veterans groups, volunteer fire companies, and other community organizations across the state. For many of these entities, the revenue generated from skill games provides a crucial lifeline.
"It's truly remarkable that the state is concluding the year with yet another month of record-breaking revenue from casinos and other gambling enterprises under the PGCB's jurisdiction," stated Mike Barley, Chief Public Affairs Officer for Pace-O-Matic. "These year-end gaming figures unequivocally demonstrate that there is ample room for both casinos and small businesses operating skill games to thrive. There is no inherent competition between the two."
Barley expressed his concern over the casino industry's ongoing assault on skill games, particularly given the undeniable success of both sectors in 2024. He pointed to the significant revenue increases experienced by casinos such as Hollywood Casino Morgantown (85% increase), Presque Isle Downs and Casino (nearly 34% increase), and Parx Shippensburg Casino (19% increase) as evidence of this.
Barley urged the casino industry to refrain from diverting its energy and resources towards obstructing anticipated legislation in 2025 that aims to regulate and tax skill games at a reasonable level. This bipartisan-supported legislation seeks to establish clear guidelines for skill game operations while generating $250 million in new tax revenue for the state in the first year alone. This revenue could be utilized to address critical state needs, and Governor Josh Shapiro has expressed his support for taxing and regulating these games for players from the United States.
However, this revenue generation relies on a fair and reasonable tax rate on skill games. Barley questioned the motives behind the casino industry's push for an excessively high tax rate, considering that the current 16% tax on skill games will already yield hundreds of millions of dollars in tax revenue.
"Unfortunately," Barley stated, "after years of unsuccessful legislative attempts and legal challenges aimed at outright banning skill games, the casino industry is now resorting to excessive regulation and taxation as a means to effectively eliminate them. Their goal appears to be to cripple small businesses, American Legions, volunteer fire companies, Moose Lodges, and other community organizations that rely on skill games by imposing an exorbitant tax rate. These entities would be unable to sustain the same tax burden as the wealthy casino corporations. The casinos are aware of this fact, yet they remain indifferent."
Numerous courts, including a unanimous Commonwealth Court ruling in November 2023, have affirmed the legality of Pennsylvania Skill games. Beyond providing supplemental income to small businesses, these games are manufactured in Williamsport, ensuring that 92% of the revenue generated remains within the local economy or the state.
In conclusion, while casinos have enjoyed a record-breaking year, it's crucial to recognize the significant contributions of legal skill games to the state's economy and the well-being of countless community organizations. Pace-O-Matic urges all stakeholders to work collaboratively towards a solution that benefits both the casino industry and the small businesses that rely on skill games.
