Pennsylvania Budget Deadline Passes with Skill Games Taxes Holding Up Negotiations

This marks the second consecutive year that Gov. Josh Shapiro has failed to pass a budget before the state’s constitutional deadline.

Ziv Chen - News Editor at Covers.com
Ziv Chen • News Editor
Jul 1, 2024 • 15:08 ET • 4 min read
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Pennsylvania lawmakers were supposed to pass the state’s budget for fiscal year 2025 by July 1. However, several issues delayed timelines, one being the ongoing debate around the taxation of skill games. This marks the second consecutive year that Gov. Josh Shapiro has failed to pass a budget before the state’s constitutional deadline of July 1. 

“I am quite confident that we have movement significant enough to allow the pieces of a budget puzzle to come together shortly after the constitutional deadline of June 30,” Senate leader Joe Pittman said on the current impasse.

Skill games are similar to slot machines, allowing players to use these gambling devices and potentially walk away with a profit. However, they do not fall under the same classification as other types of gambling and remain untaxed. The tax rate for most types of gambling in Pennsylvania is 51%.  

Gov. Shapiro had previously suggested taxing these machines at 42%, estimating this could bring in up to $150 million in revenues through fiscal year 2025. However, the Pennsylvania Supreme Court recently agreed to review a lower court ruling that the games can legally operate in the state.  

The Pennsylvania Gaming Control Board has been looking to clarify and sharpen its enforcement on gambling across the industry, recently banning 11 people from online casinos for breaching gambling regulations.  

Lawmakers have tabled other proposals for skill games, including one bill from Senator Gene Yaw suggesting a 16% tax and another from three Senators looking to ban these gaming machines. While these conversations continue, the Keystone State gambling industry continues to thrive, with the Gaming Control Board releasing Pennsylvania sports betting figures showing year-on-year growth. 

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Ziv Chen
News Editor

Ziv has been deep in the iGaming trenches for over 20 years, long before most people could spell "geolocation compliance." With a background in marketing and business development at some of the biggest names in gambling tech, Ziv knows the industry from the inside out. Since joining Covers, he's turned his sharp eye (and sharper keyboard) toward everything happening in the fast-moving world of online gambling. Whether it's new state launches, the latest twists in regulation, or what the big operators and game providers are cooking up next, Ziv breaks it all down with clarity, context, and just the right amount of snark. He covers the business side of betting, from affiliate trends and revenue reports to the tech powering your favorite slots. His motto in writing is “let’s make it make sense without putting you to sleep.”

When he’s not tracking gambling legislation or looking for the next breaking story, Ziv is living and dying with every pitch and play from his beloved Pittsburgh Steelers, Pirates, and Penguins. As a Pitt graduate, it’s a city loyalty forged in heartbreak, but one he wouldn’t trade for anything, except maybe a few more playoff wins.

When away from the keyboard, Ziv loves to hit the road and soak up the energy of casinos. Whether strolling the neon jungle called the Vegas Strip, or wandering into a smoky riverboat casino in the Midwest, Ziv’s in his element. He’s the guy chatting with players, blackjack dealers, and asking pit bosses way too many questions, all in the name of “research,” of course. The casino floor isn’t just his workplace, it’s a weird and wonderful ecosystem of flashing lights, wild characters, and pure sensory overload, and he wouldn’t have it any other way.

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