Governor Josh Shapiro, along with other state officials, advocates for the regulation and taxation of skill games as a potential funding source for Pennsylvania’s mass transit systems. Shapiro has long recognized the value of skill games, previously proposing a substantial 42% tax on the machines during his fiscal year budget address earlier this year.
While his plan to implement this tax was initially part of the budget proposal, it was ultimately excluded. The Pennsylvania Supreme Court is currently set to address the legality of these machines, which could pave the way for significant tax revenues if deemed legal, ultimately benefiting public transit initiatives in the Keystone State.
Transit Funding Boost through Skill Games Revenue
Gov. Shapiro has consistently highlighted skill games as a valuable revenue generator for the state. His budget proposal included a framework for a 42% tax on the daily gross gaming revenue from electronic skill-based machines, to be overseen by the Pennsylvania Gaming Control Board. The anticipated revenue from this tax was projected to start in the 2024-25 fiscal year, with an effective date of July 1, 2024.
However, due to a failure to reach an agreement by the budget deadline, the plan has yet to be realized. As the situation unfolds, the Pennsylvania Supreme Court will decide the future of skill games in the state. Should these games be legalized, the potential tax revenue could provide much-needed funding for transit projects.
Recently, Gov. Shapiro and Senate Republican majority leader Joe Pittman underscored the importance of utilizing skill games revenue for mass transit improvements. Shapiro had previously proposed $283 million for mass transit spending, but the final budget allocated only $80 million. Pittman remarked on the state’s financial challenges, noting that finding new funding sources for transportation infrastructure within the current budget is increasingly difficult. He emphasized that a potential skill games tax could align well with the state’s pressing needs.
The proposed tax could generate an estimated $313.4 million by the 2025-2026 fiscal year, significantly exceeding the budgetary needs for mass transit.
Source : https://www.playpennsylvania.com/shapiro-supports-skill-games-taxation-supporting-mass-transit/