pennsylvania Skill Games Industry Faces Backlash Amidst Aggressive Lobbying

HARRISBURG-The burgeoning Pennsylvania skill games industry is facing a fierce storm of controversy, battling allegations of aggressive lobbying and intimidation tactics that have soured relationships with key lawmakers. This comes as the State considers regulating an industry that has thrived in a legal gray area for years.

The controversy reached a boiling point when State senator Rosemary Brown discovered a flier with her face on it at her residence. This incident,coupled with an intense pressure campaign targeting Republican senators,has ignited a debate over the industry’s influence and its future in the Commonwealth.

Lawmakers Targeted Amidst Heated Debate

Following a politically charged assassination of a Minnesota state representative and her husband, State Senator Rosemary brown, a Republican residing in the poconos, found herself the target of what she believes was an intimidation tactic. The flier incident, which violated her community’s no-solicitation policy, left Brown feeling disturbed and highlighted the intense pressure surrounding the skill game debate.

“I Was Very Disturbed. You’re really trying to help and do a good job. No matter what party you are, you’re trying. And shouldn’t have to deal with this,” Brown stated, underscoring the unsettling nature of the incident.

Lobbying Efforts Backfire

The fierce lobbying campaign by skill games advocates has had unintended consequences. Facing pressure from Senate leaders, two prominent lobbying firms recently cut ties with Pace-O-Matic, a major player in the industry.high-ranking Senate Republicans, including President Pro Tempore Kim Ward and Majority Leader Joe Pittman, have criticized Pace-O-Matic, labeling them as “bullies.”

Pittman now frames the issue as a matter of public safety, emphasizing the need for state oversight to address potential risks associated with unregulated machines. This shift in outlook among key lawmakers signals a growing concern over the unchecked proliferation of skill games.

A Decade in the Regulatory Gray Zone

For a decade, Pace-O-Matic has advocated for state regulation, albeit at a lower tax rate than that imposed on slot machines in casinos or video gaming terminals in gas stations (52%). Despite this, the industry remains largely unregulated and untaxed, relying on players to self-report winnings on income tax forms. The actual revenue generated by Pace-O-Matic and its competitors remains shrouded in mystery.

While the “Pennsylvania Skill” machines are manufactured in Williamsport, contributing to local economies, opponents raise concerns about crime, accessibility for gambling addicts, and the proliferation of copycat machines that are essentially games of chance.

Mounting Concerns and Legislative Pushback

State representative Amen Brown has voiced strong opposition, citing the machines as hubs for criminal activity in his Philadelphia district. He supported city legislation aimed at banning them altogether. While the casino industry initially sought a total ban, their strategy has evolved to focus on limiting the number of machines and advocating for taxation on par with slot machines.

The operators For Skill PAC, heavily funded by individuals associated with Pace-O-Matic, has spent millions in Pennsylvania, primarily directed towards GOP lawmakers. However, these expenditures appear to be backfiring, with more lawmakers expressing reservations about the industry.

“I’ve never, in all these years, 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,” noted Senator Camera Bartolotta.

Pace-O-Matic denies direct involvement with the PAC responsible for the controversial advertisements, asserting that small businesses are more concerned about potential tax hikes. According to Mike Barley, Pace-O-Matic’s chief public affairs officer, skill games provide crucial support to numerous Pennsylvanians in rural, suburban, and urban communities.

Key Arguments For and Against Skill Games Regulation

Here’s a summary of the main points in the debate:

Dark Money and False Accusations

Senator Rosemary Brown is not the sole target. Senator Frank Farry, who proposed legislation to regulate skill games at rates similar to slot machines, has also been targeted by a dark money PAC called Defeating Communism. This PAC, loosely tied to Citizens Alliance Pennsylvania (CAP), has circulated fliers falsely accusing Farry, a long-time volunteer firefighter and fire chief, of trying to close fire departments and veteran posts.

Farry confronted a canvasser distributing misinformation in his district, who revealed that her company was working on behalf of CAP. The field director admitted that Farry was well-liked, but threatened a primary challenge if he didn’t support the skill game industry.

Farry believes these aggressive tactics indicate the industry’s awareness that regulation is imminent. Senator Farry stated in an interview that they’re trying to intimidate them to either cave to what they want or to back off the issue, further stating that that wasn’t how he or his voters are.

What are your thoughts on the regulation of Pennsylvania skill games? Should they be taxed like slot machines? Share your comments below!