PA casinos ask lawmakers to tax skill games

WEST PITTSTON, LUZERNE COUNTY (WBRE/WYOU) — Pennsylvania casinos are filing a lawsuit against the state, asking for a level playing field. It’s regarding taxes and skill games.

The lawsuit is against the highest court in Pennsylvania.

It was filed on Monday and could result in one of two things, a tax on skill games or no more tax on slot machines.

Austin, who wished to remain off camera comes to this food mart gas station in West Pittston several times a week to play these skill games.

“It just pays better to me honestly. I feel like this is more fun because it’s not taxed,” Austin said.

That’s exactly why the operators of a dozen casinos in Pennsylvania are suing the state.

The goal of the lawsuit is to declare that a tax on slot machine revenue in casinos is unconstitutional.

The state doesn’t impose it broadly on cash-paying electronic game terminals known as “skill games” like the one Austin is playing and the casinos feel that’s unfair.

These games of skill operate differently than slot machines in the state.

You only need to be 18 years old to play and they’re found at bars, gas stations, and even pizza parlors where you don’t have to be 21 to enter.

“It’s like tic-tac-toe. It’s much easier than a slot machine I feel like,” Austin stated.

Pennsylvania collects roughly 54% tax on casino slot machines.

Casino owners in the lawsuit argue it should be the same for skill games.

It’s asking the court to either force the state to apply the same tax rate that’s on slot machines to skill games found in bars and restaurants or bar it from collecting taxes on slot machines.

The latter would jeopardize more than 1,000,000,000 in annual tax revenue for the Keystone State.

Austin feels if that happens, “everybody would go there and play.”

28/22 News reached out to Mount Airy Casino in Mount Pocono and they released a statement Wednesday saying in part “Although Mount Airy Casino Resort is not a part of this lawsuit, we support this tax parity initiative.”

28/22 News also reached out to Mohegan Sun Casino in Plains Township and have yet to hear back.

Roughly 67,000 of these skill games exist in Pennsylvania.

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