Pennsylvania Rep. Russ Diamond Proposes Legalizing Skill Games at Licensed Venues with 20% GGR Tax and Redirecting Most Gaming Revenue to Property Tax Relief

Pennsylvania Rep. Russ Diamond (R-Lebanon) plans to introduce legislation that would establish a regulatory framework for skill games and overhaul the state’s distribution of gaming tax revenue.

Russ Diamond, minority leader of the House Gaming Oversight Committee, noted that more than 20 years have passed since the Race Horse Development and Gaming Act authorized limited slot machine casinos to support the race horse industry and provide property tax relief. He cited subsequent expansions to table games, internet-based gaming, and sports wagering, along with the Pennsylvania Supreme Court’s ruling that unregulated skill games constitute slot machines.

Diamond wrote in a memo that it is time for necessary changes. He said: “Authorized legal gaming in the Commonwealth has been expanded to include table games, internet-based gaming, and sports wagering. With the recent Supreme Court ruling that unregulated skill games are slot machines, it’s time to make some necessary and much-needed changes.”

Proposed Structure for Skill Games and Taxation

The forthcoming bill would permit up to five skill games at social clubs, restaurants, bars, and truck stops holding licenses from the Pennsylvania Liquor Control Board. Terminal gross gaming revenue would be taxed at 20%.

Diamond also calls for eliminating local share programs. Local governments collected $545.6 million in 2025 under the current structure. All gaming tax revenue would instead deposit into the State Gaming Fund and allocate as follows: 6.75% to the Race Horse Development Trust Fund, 1% to the Compulsive and Problem Gambling Treatment Fund, 79% to the Property Tax Relief Fund, and 13.25% to the General Fund.

The changes would generate almost $1 billion in additional money for the Property Tax Relief Fund. Had the overhaul been in place in 2025, 2.87 million qualified homeowners would have received a $702 property tax rebate.

Local Opposition and Approaching Court Deadline

County and municipal governments are expected to push back on the bill. Localities with casinos in their jurisdictions rely on approximately 2-4% of monthly GGR proceeds from those venues.

Diamond plans to file the legislation in the near future and is seeking cosponsors in the interim. If the bill is not adopted, the Pennsylvania Supreme Court has ordered that skill games be turned off when its stay expires on Oct. 13, 2026, as reported by Casino.org News.

Reporting: Casino.org News

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