How Skill Games are Impacting Casinos, Pennsylvania Skill Responds
Gary Hendricks, Vice President and General Manager at Presque Isle Downs & Casino, explained that casinos in Pennsylvania are subjected to pay just over 50% in tax, but Presque Isle Downs & Casino is paying more than 60%.
Hendricks also said that skill games are not currently being taxed and bring other concerns such as being unregulated, meaning that anyone can play them.
He also explained that if the games remain untaxed, he fears the worst for not just Presque Isle Downs & Casino, but for casinos all throughout Pennsylvania.
Erie News Now has gone to multiple establishments with skill games throughout Erie County and asked for an on camera interview, but so far only the American Legion Post 771 has agreed to one.
Mike Barley, a spokesman for Pennsylvania Skill has issued the follow statement in response:
“We disagree with the recent comments made by Rep. Pat Harkins and the casino industry. Three comments, in particular, must be corrected.
“Legal Pennsylvania Skill games are not competition for casinos. Our games provide a completely different experience for players and research proves there is no impact on casino revenues. In fact, Pennsylvania casinos see record profits year after year, this year being no exception. It is absurd to suggest that a patron playing legal skill games at a corner bar or local Fraternal Order of Eagles club in Erie is deciding between that or going to Presque Isle Downs & Casino.
“There also is no evidence of children playing Pennsylvania Skill games. Our machines have clear signage that minors are prohibited from playing, and this is enforced by operators and locations. We trust Pennsylvania small businesses every day to manage age-restricted products such as tobacco and alcohol – skill games have proven to be no different.
“Lastly, the suggestion that skill games are exempt from taxes is also not true. Our games are subject to income taxes, something our locations and operators already pay. That said, for many years, we have been advocating for an additional, industry-specific tax on the games. Something the casinos have stood in the way of.
“We take the welfare of the communities where our games are located seriously and agree that the number of illegal gambling machines cropping up in Erie and communities across the state is a huge problem. That is why we advocate for what Gov. Josh Shapiro supports: legal skill game regulation and taxation legislation that will rid neighborhoods of illegal gambling machines, especially mini-casinos. The measure also would provide new tax revenue for the state -- $250 million in the first year -- to use on priorities such as transportation and mass transit.
“We hope Representative Harkins will join the growing, bipartisan legislative effort to pass skill game legislation in 2025.”