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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2021 - 2022
Regular Session
MEMORANDUM
| Posted: | January 27, 2021 01:14 PM |
|---|---|
| From: | Senator Gene Yaw |
| To: | All Senate members |
| Subject: | Dominant Skill Video Game Act |
| In the near future, I will be introducing legislation that will regulate and establish an additional tax on video skill games in the Commonwealth. This legislation will generate hundreds of millions in tax revenue annually. The legislation will permit the manufacturing, distribution, sales, service and operation of video skill games. Video skill games, operated in a regulated environment, will significantly benefit the Commonwealth by providing substantial revenue and creating jobs. All games will be required to be connected to a terminal collection and control system that allows the Commonwealth to monitor all transactions and ensure that all taxes are accrued and paid. Upon passage of this legislation, experts estimate that approximately $300 million in annual tax revenue will immediately flow to the Commonwealth. One of the largest video skill game manufacturers is located in my District. This industry has created hundreds of manufacturing jobs in and around my District. Nearly all of the components are sourced in the United States, many in our Commonwealth. Recently, manufacturing projects associated with skill games have been reshored from China to Williamsport. The manufacturing of video skill games are creating good, family-sustaining jobs in our Commonwealth Additionally, my legislation will strengthen penalties for those who operate unlicensed and illegal games and gambling devices. These illegal gambling devices' negative impacts include but are not limited to the non-payment of local, state, or federal taxes, criminal activity, nuisance, and an increased strain on local and state law enforcement resources. When so many small businesses, including bars and restaurants, and fraternal and veterans clubs are struggling due to the economic strain caused by the Covid-19 pandemic, video skill games are keeping them afloat by providing them with supplemental revenue. This bill will address both the need to clean up the market to rid us of illegal gambling, provide the state with tax revenue and support the small businesses by giving them access to an additional revenue stream. |
Introduced as SB950