Pennsylvania Lawmaker Proposed Skill Game Tax Bills
The proposed legislation seeks to tax skill games at 20% to fund nearly $1 billion in property tax relief for residents.
Updated on Sept. 24, 2026 in Gambling
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Should Pennsylvania tax skill games to provide direct annual property tax relief to homeowners?
Representative Russ Diamond has introduced two bills to regulate and tax skill games across Pennsylvania. The legislation aims to generate nearly $1 billion in annual property tax relief for millions of qualified homeowners.
Why it matters
The proposal aims to shift the state's approach to property tax relief by funding direct gaming dividends. This plan seeks to replace existing homestead exclusion methods with a system supported by taxes on regulated gaming machines.
The proposal mandates a 20% tax rate on skill games and limits locations to five machines each. It aims to provide annual dividend payments of at least $702 to 2.87 million qualified Pennsylvania homeowners.
The players
Russ Diamond
He is a Pennsylvania Representative who introduced the new legislation to tax skill games.
The details
The bills restrict machine placement to liquor-licensed restaurants, bars, clubs, and truck stops. By taxing these devices, the state intends to provide direct financial assistance to homeowners rather than relying on current exclusion models.
Timeline
Representative Russ Diamond introduced the legislation on September 24, 2026.
Culture Shift
The proposal marks a departure from the existing Pennsylvania Homestead Exclusion by replacing the traditional tax reduction model with direct gaming dividend payments. This shift reflects an effort to leverage regulated gaming revenue to address long-standing property tax concerns.
Qualified homeowners could receive an annual direct payment of at least $702 if the legislation is enacted. Residents may see changes to the availability of skill games in local bars, restaurants, and clubs as new regulations and machine limits are implemented.
The takeaway
This proposal highlights a new attempt to utilize gaming revenue to solve broad fiscal challenges like property tax burdens. Homeowners should monitor the bill's progress to understand if and when they might qualify for the proposed dividend payments.
Further reading
For more on the state's regulatory landscape, visit Pennsylvania Gambling.
Source note: This article includes information reported by WGAL 8 Lancaster/Harrisburg.
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Should Pennsylvania tax skill games to provide direct annual property tax relief to homeowners?
