Pennsylvania lawmakers have until October 13 to pass legislation regulating skill game terminals, or the machines become subject to law enforcement seizure under state gambling law. The deadline stems from a Pennsylvania Supreme Court ruling issued in June 2026 that classified skill games as slot machines subject to the state’s gaming and criminal statutes, triggering a 120-day window for the General Assembly to act.
Two companion bills currently before the legislature would bring the machines under a regulatory framework rather than an outright ban. Senate Bill 1079, sponsored by Sen. Gene Yaw and co-sponsored by Sens. Marty Flynn and David Argall among others, and its House companion, House Bill 2213, sponsored by Rep. Danilo Burgos, would impose a monthly $500 terminal fee. Proponents project the framework would generate approximately $300 million in tax revenue in its first year.
The bills mark a departure from Governor Josh Shapiro’s earlier proposal to tax skill games at 52%, which was included in his 2026-27 budget request but excluded from the final budget he signed on July 11, 2026. That gap has left the machines’ regulatory status unresolved heading into the fall deadline, with the legislature yet to reconcile the lower terminal-fee model favored by Senate and House sponsors against calls for a higher tax rate more closely aligned with the state’s existing casino slot tax structure.
Industry and Small Business Pressure
Small business owners, veterans’ organizations, and fraternal clubs that host skill game terminals have lobbied for passage ahead of the deadline, citing the machines as a revenue source supporting operations and staffing. Pace-O-Matic, the largest skill game manufacturer operating in the state, has backed the push for a regulated framework rather than removal of the machines from the market.
With roughly six weeks remaining before the deadline, the legislature has not scheduled a floor vote on either bill. Absent action, skill game terminals operating outside the state’s licensed gaming framework would become subject to confiscation, an outcome that would have direct implications for the thousands of small businesses and nonprofit venues currently hosting the machines across Pennsylvania.
Image By Ted Van Pelt – CC BY 2.0