With the deadline for the General Assembly to regulate skill games in Pennsylvania looming, Rep. Russ Diamond (R-Lebanon) will soon introduce two pieces of legislation to legalize skill games and provide homeowners nearly $1 billion in additional property tax relief.
“Pennsylvania’s gaming law was originally written for a much different era,” said Diamond. “It’s time to modernize our approach, bring skill games into a regulated system ahead of the state Supreme Court’s October 13th deadline, and make sure Pennsylvania homeowners see a greater benefit from the revenue generated by gaming.”
Under the proposal, skill games would be regulated and taxed at a rate of 20%, with up to five machines permitted only in clubs, liquor-licensed restaurants and bars, as well as qualified truck stops. The legislation would also reduce the tax rate for casino-based slot machines to 49.9% and set the same rate for all online casino games.
Diamond’s bill package establishes a defined formula to maximize property tax relief, provide reliable annual funding for the Race Horse Development Trust Fund, nearly double support for compulsive and problem gambling treatment, and maintain a revenue stream for the state’s General Fund.
Instead of offering property tax relief by way of the homestead/farmstead exclusion, Diamond’s plan would deliver it with a direct annual gaming dividend payment to Pennsylvania’s 2.87 million qualified homeowners.
“Every time I talk about property taxes, people complain about not seeing the relief from casinos promised by politicians more than 20 years ago,” Diamond said. “This set of bills will increase property tax relief for 96% of Pennsylvania’s homeowners and deliver it directly into their hands. The amount of relief they receive will grow in direct proportion to the annual growth of all forms of legal gaming in the Commonwealth.”
Pennsylvania skill games face a potential statewide shutdown in October 2026 unless state lawmakers pass a regulatory and tax framework before a court-ordered stay expires.
