jili tutorial

Pennsylvania Lawmaker Proposes Legalizing Skill Games and Redirecting Gaming Taxes to Homeowners

By jili tutorial · September 3, 2026

Pennsylvania Lawmaker Proposes Legalizing Skill Games and Redirecting Gaming Taxes to Homeowners

A Pennsylvania state representative is pushing to bring controversial slot-like skill games under state regulation while overhauling how gaming tax revenue is distributed—aiming to put more money directly into homeowners’ pockets.

The Push to Regulate Skill Games

Pennsylvania Rep. Russ Diamond (R-Lebanon) announced he will soon introduce legislation to legalize skill games in social clubs, restaurants, bars, and truck stops that hold licenses from the Pennsylvania Liquor Control Board.

“It’s been over 20 years since limited slot machine casinos were authorized to operate in Pennsylvania for the purpose of supporting the race horse industry and providing property tax relief to homeowners. Much has changed since the Race Horse Development and Gaming Act was first imagined by our predecessors,” Diamond wrote in a memo to colleagues in Harrisburg.

He added: “Authorized legal gaming in the Commonwealth has been expanded to include table games, internet-based gaming, and sports wagering. With the recent Supreme Court ruling that unregulated skill games are slot machines, it’s time to make some necessary and much-needed changes.”

Under Diamond’s proposal, each qualified location could host up to five skill games, with terminal gross gaming revenue (GGR) taxed at 20%.

Shifting Gaming Tax Revenue to Property Tax Relief

Beyond regulating skill games, Diamond wants to restructure how Pennsylvania allocates its gaming taxes. The state already collects more gaming tax revenue than any other state, thanks to its high tax rates.

Diamond recommends eliminating local share programs and instead directing those funds toward residential property tax relief. Under his plan, tax revenue from all forms of gaming would go into the State Gaming Fund and be distributed as follows:

In 2025, local governments collected $545.6 million under the current tax structure. Diamond wants to cancel those local allocations and generate additional revenue through regulated skill games. He estimates the proposal would create nearly $1 billion in extra funding for the Property Tax Relief Fund.

If skill games had been regulated and Diamond’s tax overhaul implemented in 2025, approximately 2.87 million qualified homeowners would have received a property tax rebate of $702 each.

What’s Next for the Bill

Diamond serves as minority leader of the House Gaming Oversight Committee. He plans to file his skill games bill “in the near future” and is asking fellow lawmakers to sign on as cosponsors.

However, county and municipal governments—especially those with casinos in their communities that rely on local share disbursements—are expected to push back. Localities have welcomed casinos in exchange for roughly 2–4% of a gaming venue’s monthly GGR proceeds.

If Diamond’s bill does not pass, the Pennsylvania Supreme Court has ordered skill games to be shut down when its stay expires on October 13, 2026.