Pennsylvania lawmakers continue fight over skills games taxation: ‘Ugliest situation I’ve been in’

(WHTM) — One of the biggest, most public, and in some lawmakers’ view, the nastiest budget-related battle, continues at the State Capitol: How is Pennsylvania going to tax and regulate skill games?

Pennsylvania lawmakers agree that there needs to be governmental oversight and a reasonable tax rate, but on skill game taxation, reason is nowhere to be found.

“People ask where skill money goes,” said Doug Sprankle, the President of the Pennsylvania Taverns and Players Association. “It goes right back into our communities.”

The state capitol rotunda steps were full Tuesday of VFW, Legion, and lodge managers calling skill games a savior.

“We’ve had our struggles, but since we installed legal skill games, we have been able to give pay increases to our employees,” said Mary Jo Bishop, the owner of Steggie’s 9th Ward Café, a small bar in Lebanon. “Losing Steggie’s would be devastating to us and create a hole in our community.”

Sprankle and Bishop are rallying against a bill, endorsed by Senate Republican leaders, that would tax skill games at 35%.

“If this bill passes like this, we will not be able to keep our doors open, we can’t survive without the skill revenue,” said Rusty Miller of VFW Post 7530 Mechanicsburg.

This crowd prefers State Senator Gene Yaw’s (R) bill that would tax the games at just 16%.
Their rally is very public, but the behind-the-scenes fight, lawmakers say, is very nasty.

“This is the ugliest situation I’ve been in,” said Rep. Yaw. “I’ve been here 17 years. I’ve never been anything I’d seen anything like this.”

Skill games supporters sent negative mailers calling sponsors of the 35% bill anti-veteran, cozying up to Harrisburg lobbyists. President Pro Tempore Kim Ward (R) took exception.

“They’re bullies, and I don’t do well with bullies,” said Sen. Ward.

Senate Majority Leader Joe Pittman was told of Ward’s comment and said, “I agree with her one hundred percent.”

Rep. Yaw counters that those top Republican leaders never even consulted him before dropping their bill, even though he’s been working on this issue for years, knows it better than most, and the machine manufacturer is in his district.

“Very frustrating, yeah,” said Yaw. “I mean, even if they disagree, I would think that maybe we ought to go talk to the guy.”

Rep. Yaw estimates that his bill would generate between $250-300 million per year. He said it should have been done two years ago. The state would have $500-600 million, but the real question is, can it get done this year?