Sen. Gene Yaw wants to tax skill games, benefit environment

Harrisburg, Pa. — State Sen. Gene Yaw has announced his intention to introduce legislation that will establish a regulatory framework and taxing structure on skill video games. A portion of the tax revenue would be placed into the Clean Streams Fund.

As a member of the Chesapeake Bay Commission and environmental committees, Sen. Yaw has been especially committed to water restoration and preservation throughout his tenure.

Sen. Yaw sent a memo to Senate members explaining that the legislation could add an estimated $300 million in immediate annual tax revenue.

“Skill games are a piece of the economy in our state. They cannot and should not be ignored,” Sen. Yaw said. “With each passing day, Pennsylvania is missing out on significant additional revenue for important programs like the Clean Streams Fund. It is vital that the legislature take the necessary steps to regulate this industry, capitalizing on substantial earnings and supporting the backbone of Pennsylvania: our small businesses.”

If passed, the legislation would require all games to be connected to a terminal collection and control system that allows all transactions to be monitored, ensuring that all taxes are accrued and paid. There will be greater penalties for operating unlicensed and illegal games and gambling devices, and a valid ID must be presented to play.

Additionally, the legislation would not allow gaming to be an establishment's primary source of income and limit the number of terminals allowed per location.

The legislation would direct sole regulatory authority over the sale, distribution, and use of skill video game systems to the Department of Revenue. Enforcement will be carried out by the Bureau of Liquor Control Enforcement.

The Clean Streams Fund, established in 2023, addresses agricultural conservation, nutrient management, clean water procurement, stormwater management, and acid mine drainage. The program has helped Pennsylvania make significant headway in reducing its pollution of the Chesapeake Bay.