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Time running out on skill game wager

The clock is ticking on the skill game issue across the state.

On Oct. 14, every skill game in Pennsylvania becomes illegal unless our lawmakers come to some type of agreement.

The state Supreme Court has already ruled the machines “meet the Gaming Act definition of a slot machine,” and state police have warned that after Oct. 13, any machines outside licensed casinos or qualifying truck stops can bring a jackpot of charges.

Simply unplugging them won’t cut it, either, since the state police consider an operable device a slot machine if it can be quickly put back into operating status.

The Supreme Court ruling effectively ends a long-running debate over what the machines are.

But it doesn’t resolve what the state should do with them — especially since many nonprofits are calling the machines a lifeline.

Across the state, social clubs, veterans posts, fraternal organizations and volunteer fire companies describe the same reality.

There are fewer members, rising costs and aging buildings. Often, the groups have obligations that don’t shrink just because the budget does. Scholarships, general community assistance and events honoring veterans and active military personnel are contributions that take some of the burden off state and local governments.

These places aren’t casinos. They’re longtime community institutions trying to stay alive.

Our region’s lawmakers have been relatively clear about the stakes involved.

State Sen. David Argall has publicly opposed bringing skill games under a regulated and taxed system. He recognizes that the skill game machines are already embedded in small-town economies and nonprofit halls.

State Rep. Doyle Heffley favors regulating rather than prohibiting the machines, too, but warns against taxing them at a rate so high that it eliminates any revenue that the local clubs rely on.

Their positions are practical. Anyone who walks into a local fish fry or other fundraising event already knows that these machines keep the lights on.

There’s still time for that to happen.

Many organizations already have Small Games of Chance licenses to raise revenue. Modernizing those laws could include licensing, audits and age limits. Perhaps, for liquor-licensed locations, the Pennsylvania Liquor Control Board might offer oversight.

In addition, two pieces of legislation, Senate Bill 1079 and House Bill 2213, are bipartisan plans to regulate skill games across the state.

The proposals, if passed, would create a $500 monthly fee for each machine that would be split as $200 from the host, $200 from the operator and $100 from the game developer. The law would cap the statewide market at 50,000 terminals.

Supporters of the proposal say they would immediately generate about $300 million annually.

Gov. Josh Shapiro favors a 52% tax on gross skill game revenue and a 40,000 cap on machines that could generate up to $1.2 billion in revenue annually.

For nonprofits, the tax rate is a concern. High rates could wipe out potential revenue. A flat fee or a special nonprofit rate would maintain the local benefits and still satisfy the state taxes.

Local governments should get a cut of the cash, too.

Several Schuylkill County municipalities have implemented licensing fees on the skill games machines.

In May, Lansford approved a measure that set a $250 annual licensing fee that included limits on how many and where machines might be located in the borough. It capped the number of terminals allowed at 100.

The ordinance, however, was never enforced pending outcome of the court battle at the time as well as legislators’ indecision on how to deal with the ruling.

A revised statewide system should include a cut for local governments and at the same time allow them the authority to regulate where machines can be placed.

Many might agree that the state doesn’t need machines scattered in corner stores or other public places. It also doesn’t need to pull the plug on nonprofits that use the machines to support veterans, families and local charities.

The debate has gone on for far too long.

Lawmakers have been hedging their bets, trying to accommodate fire companies, VFW posts and other civic organizations without openly defying the courts or the casinos.

For a while, it made sense. But the legal fog has lifted.

The state needs a clear, workable path that protects nonprofits, sets rules for operators and antes up for local governments.

The state should finally pick a lane and build something to move forward.

The time for hedging has run its course.

And the clock is still ticking.

ED SOCHA | tneditor@tnonline.com