Pennsylvania House Bill HB2075

Pennsylvania 2023-2024 Regular Session

• Introduced: 2/28/24
• Refer: 2/28/24

Caption

Providing for skill video gaming; imposing duties on the Department of Revenue; providing for issuance of licenses for skill video gaming; imposing a tax and criminal and civil penalties; and providing for zoning.

Impact

The proposed legislation carries substantial implications for state laws regarding gaming and gambling. It is expected to create a legal framework that legitimizes skill video gaming while ensuring that operators comply with strict licensing requirements. This would help eliminate unregulated and potentially unlawful gambling activities that have proliferated in the absence of clear regulations. Notably, the revenue generated from the tax on skill video gaming will also be allocated back to local governments and the state budget, supporting various public services and infrastructure.

Summary

House Bill 2075, known as the Skill Video Gaming Act, is aimed at regulating skill video game systems in Pennsylvania. The legislation provides comprehensive guidelines regarding the issuance of licenses for the operation of these gaming systems. It outlines the roles of the Department of Revenue in monitoring and enforcing compliance, which includes overseeing the manufacturing, distribution, and operation of skill video game systems. Provisions have been established for tax collection, with a tax rate set at 16% on the gross profits generated from skill video gaming operations. This significant tax revenue is intended to support state operations and local municipalities where the gaming terminals are placed.

Sentiment

Sentiment surrounding HB 2075 appears divided among lawmakers and stakeholders. Supporters emphasize the potential for increased tax revenue and the creation of a more structured and accountable gaming environment, which could promote economic development in the region. Conversely, critics express concerns about the societal implications of expanding gaming access and the potential for increased gambling-related issues. The absence of strong local controls is also a point of contention, with opponents advocating for community involvement in decisions about gaming establishments.

Contention

One of the main points of contention regarding HB 2075 lies in the balance between state regulation and local governance. While the bill aims to standardize the operation of skill video games, critics argue that it undermines local control over zoning and the placement of gaming terminals. Additionally, provisions that limit the local tax authority to impose additional taxes on skill video gaming operations may be seen as restrictive, raising concerns about the financial impacts on municipalities that may wish to charge local fees to fund community services.