State Sen. Joe Picozzi is pressing Harrisburg to regulate and tax Pennsylvania’s skill games and steer part of the revenue to mass transit before a court-imposed deadline arrives Oct. 13.
The Philadelphia Republican, who represents the 5th District in the Northeast, made the case in an op-ed on his Senate website, warning that some 70,000 machines in gas stations, taverns, restaurants, social clubs and VFW halls could be unplugged if lawmakers cannot agree on how to regulate them, how to tax them and what to do with the money. He called on colleagues in both the House and the Senate to join him.
The deadline comes from the courts. The Pennsylvania Supreme Court ruled in June that the machines are gambling under the same legal definition as slot machines. Justices gave the General Assembly until mid-October to act before the ruling takes effect, after which machines could be seized and businesses that keep running them could face criminal charges.
Picozzi says regulation also means money. Some estimates put annual revenue as high as $1 billion, and he wants at least a portion to support SEPTA and other regional transit systems, along with roads, bridges and other infrastructure, without new burdens on taxpayers. He also called for accountability and transparency requirements on how transit and road funding is spent.
He acknowledged lawmakers agree on the need for rules to protect low-income communities and curb nuisance behavior, but are far apart on the tax rate. Nonprofits such as VFWs depend on the machines’ revenue, he noted, so any structure must keep them able to operate legally.
The rate fight is already a campaign issue. In Wednesday’s governor debate, Gov. Josh Shapiro defended his proposal, part of his 2026-27 budget presentation, to legalize and tax the machines at 52% to fund transit, while Republican Stacy Garrity said that rate would hurt VFWs and small businesses and proposed a flat $500 monthly fee per machine.
With the deadline days away, no compromise has been announced.
