Pennsylvania Lawmakers Face Aggressive Tactics in Skill Game Debate
Pennsylvania state senators are increasingly facing intense pressure – and, in some cases, outright intimidation – as the debate over the regulation and taxation of “skill games” reaches a fever pitch. The escalating tactics, employed by supporters of the lucrative industry, include targeted fliers and aggressive canvassing, raising concerns about the integrity of the legislative process and prompting accusations of bullying from key lawmakers.
The controversy centers around machines resembling slot machines, operated by companies like Pace-O-Matic, the Georgia-based creator of “Pennsylvania Skill” games. These machines have proliferated across the state, operating in a legal gray area for over a decade, thanks to a 2014 Beaver County ruling that distinguished them from traditional slot machines based on a purported “skill component” – a pattern memory minigame. A crucial case regarding the legality of these machines is currently before the state Supreme Court.
The pressure campaign intensified after Governor Josh Shapiro, a Democrat, proposed a 52% tax on the machines, a rate comparable to Pennsylvania’s existing games of chance. This proposal, estimated to generate $369 million in its first year, was swiftly rejected by the industry.
The situation took a disturbing turn for State Senator Rosemary Brown, a Republican, who discovered a flier with her face on it at her home in the Pocono Mountains. “I was very disturbed,” Brown stated. “You’re really trying to help and do a good job… And shouldn’t have to deal with this.” The flier, while not directly threatening, is believed to be an attempt to influence her stance on lowering taxes for the skill game industry.
This incident is part of a broader, “all-out pressure campaign” targeting GOP state senators, according to sources familiar with the situation. The industry has been financially supportive of many lawmakers over the past eight years, but its aggressive tactics are now backfiring. In recent weeks, Pace-O-Matic has lost the services of two top lobbying firms in the state, following pressure from Senate leaders.
Senate President Pro Tempore Kim Ward and Majority Leader Joe Pittman have publicly condemned the industry’s behavior, labeling them “bullies” as they deliberate on the appropriate tax rate for the machines. Pittman has framed the issue as a matter of public safety, citing a recent robbery at a skill game operation in his district.
Pace-O-Matic has consistently maintained its desire for state regulation, but at a rate significantly lower than the 52% applied to casinos and video gaming terminals. The company argues that taxing skill games at the same rate would disproportionately harm small businesses that host the machines, such as bars, clubs, and fraternal organizations. They also claim players have the opportunity to win 100% of the time, justifying a lower tax rate.
However, opponents raise serious concerns about the proliferation of skill games. Beyond the issue of crime, they point to the accessibility of these games to individuals struggling with gambling addiction – unlike casinos, which offer self-exclusion lists. Consumer protection is also a concern, with numerous copycat machines on the market that operate as pure games of chance. Some lawmakers, including State Representative Amen Brown, advocate for an outright ban, citing the machines as hubs for criminal activity in his district.
The Operators for Skill PAC, funded by individuals connected to Pace-O-Matic and other amusement companies, has spent nearly $2.2 million in Pennsylvania, primarily targeting GOP lawmakers. However, the recent escalation in tactics appears to be souring even those who have previously benefited from the industry’s financial support.
“I’ve never… come across any kind of a group that has done what these groups have been doing, which is, I find, unprofessional, heavy-handed, threatening and menacing,” said Senator Camera Bartolotta. “You don’t win people over by doing that.”
Pace-O-Matic has distanced itself from the Defeating Communism PAC, responsible for the fliers targeting Brown and others, asserting that small businesses are the primary stakeholders concerned about potential tax increases.
The aggressive tactics have extended beyond simple fliers. State Senator Frank Farry, who previously introduced legislation to regulate skill games at a rate comparable to slot machines, has also been targeted by the Defeating Communism PAC. Flyers circulated in his district falsely accused him of attempting to close volunteer fire departments and fraternal clubs.
In a recorded interaction obtained by The Inquirer, Farry confronted a canvasser from Texas who was distributing the misinformation. The canvasser’s field director admitted their company, Motivate the Movement, was working on behalf of Citizens Alliance Pennsylvania (CAP), and threatened to primary Farry if he didn’t support the skill game industry.
Farry, a 24-year veteran volunteer firefighter and current fire chief, expressed his outrage at the tactics. “They’re trying to intimidate us to either cave to what they want or to back off the issue,” he said. “My mom, the way she raised me, didn’t raise me to treat people this way.”
The recent escalation suggests the skill game industry recognizes that Pennsylvania is closer than ever to regulating these machines. The outcome of the ongoing debate will have significant implications for the state’s revenue, small businesses, and the broader landscape of gambling in Pennsylvania.
