Small Businesses Urge Lawmakers for Fair Tax Policies on Skill Games

October 20, 2025
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Local Businesses Advocate for Reasonable Taxation on Skill Games

Recently, around one hundred small business owners, vendors, and community supporters gathered at the Hershey Italian Lodge to request fair regulations and reasonable taxation on skill games in Pennsylvania. These machines have become an important source of revenue for local companies striving to stay afloat amid financial challenges.

Concerns Over High Taxes Threaten Jobs and Community Funding

Attendees expressed that upcoming legislation could significantly impact the ability of neighborhood bars, restaurants, and volunteer organizations to rely on proceeds from skill games. Although resembling slot machines, skill games require player input and remain in a legal grey area, awaiting clarification from the Pennsylvania Supreme Court.

Representatives from House of Pizza in Lancaster emphasized that income generated from skill games is essential for covering expenses such as staff overtime, maintaining affordable menu pricing, and supporting local charities. They warned that without this funding, managing inflation and rising operational costs would become increasingly difficult.

The debate at the event focused less on the existence of taxes on skill games and more on the appropriate tax rate. Governor Josh Shapiro has proposed a 52% tax rate, equal to that levied on casinos, while other legislators have suggested significantly lower rates. For example, Senate Bill 626, introduced by Senator Gene Yaw, proposes a 16% tax, and Senate Bill 756 by Senator Chris Gebhard suggests a middle ground of 35%. Many small business owners expressed comfort with a tax rate ranging from 15% to 20%, cautioning that higher taxes could lead to business cutbacks or layoffs.

Community Impact and Support Highlighted at Hershey Gathering

Willie Shay, owner of a family-run business in Lebanon County, stressed that excessive taxes could strain local businesses and nonprofits that rely on donations generated by skill games. He urged lawmakers to ensure that small enterprises are not driven out by heavy regulations in upcoming budget discussions.

Supporters also highlighted how funds from skill games benefit communities directly. At the gathering, attendees presented a $19,000 donation to the Christiana Volunteer Fire Company in Lancaster County to help upgrade its security system following a recent theft. Fire company president Michael Ross remarked on the critical importance of such local support for emergency responders.

While political debates continue over the specifics of tax plans, business owners across Pennsylvania are advocating for balanced legislation that protects their interests without imposing overwhelming financial burdens. The consensus from the Hershey event was hopeful that the state will establish fair, stable policies fostering small business growth and contributing positively to the regional economy.