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Pennsylvania governor includes call for 'skill games' regulation in budget address
Pennsylvania Gov. Josh Shapiro called for the state legislature to send him a framework for making "skill games" legal and taxed in the commonwealth.
For the second consecutive year, Pennsylvania Governor Josh Shapiro's budget proposal includes new revenue from regulated and taxed "skill games," representing an expansion of legal gaming in the commonwealth. The gaming terminals currently exist in a legal grey area and Shapiro wants to grant them regulated status in exchange for taxing them like other forms of gaming in Pennsylvania to provide new revenue for social services.
Shapiro restates support for regulating "skill games"
According to the Pittsburgh Post-Gazette, "skill games" taxation is one of several avenues that Shapiro has targeted for new funding for Pennsylvania in his 2026-27 budget. The new revenue will cover expenses like additional funding for education and other needs.
"Skill games" are gaming terminals found in many businesses that have liquor licenses in Pennsylvania. They offer cash prizes like the best slots to play online for real money and each play requires participants to pay cash to play.
Distributors and manufacturers of the terminals contend that playing on the terminals is not gambling, however, because of the "skill" element that follows each play. The contention is that players can get their money back if they complete the challenge successfully.
Shapiro argued during his budget address that leaving the games unregulated leaves Pennsylvanians vulnerable to problem gambling and means that the commonwealth is missing out on tax revenue that it could be capturing from the games. However, the parties behind established and new PA online casinos have taken issue with that position.
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Pennsylvania casinos have opposed "skill games" regulation
A big part of the reason that "skill games" in Pennsylvania remain unregulated is the debate over whether they should exist in the commonwealth at all. That issue is currently before the Pennsylvania Supreme Court and has produced competing legislation in Hartford.
Opponents of skill games regulation have argued that the terminals cannibalize the licensed physical casinos in the state. They also state that enforcement of age restrictions is lax and agree with Shapiro that their presence can be a vulnerability for people who struggle with disordered gaming.
The current legal framework has led to select terminals being seized by law enforcement, which has led to the litigation in the Pennsylvania court system. Meanwhile, the state legislature has sputtered in delivering clarity on the subject.
Competing proposals have surfaced as recently as the 2025 legislative session, but the divide has prevented any of the bills from gaining necessary support to reach Shapiro's desk. That has prompted Shapiro to put more of his energy behind a resolution to the issue.
The impact of regulating skill games on casino apps in Pennsylvania has not been studied by independent parties. Pennsylvania is one of the few US states where residents and visitors can access bonuses like the Golden Nugget Casino promo code.
Shapiro's influence may push more members of the legislature in Hartford to support regulating skill games. The existing gaming industry in the commonwealth, which includes the latest Fanatics Casino promo code, could oppose such a change, though.
