JEFFERSON COUNTY, Pa. (EYT) — Local governments across the region are taking a closer look at the fast-growing presence of skill game machines in bars, convenience stores, and restaurants, and some are taxing them as a way to bring more oversight and generate revenue while the state continues to debate how such devices should be regulated.
In Venango County, Franklin became the latest to approve such a tax when its city council passed Bill No. 5 of 2025 on December 1. Starting January 1, 2026, the city will require a $300 annual fee per machine. Businesses must register each device and report details, including serial numbers and location. Late filings face penalties, including fines and possible jail time. The new rule excludes those used by nonprofits.
Franklin City Council member Christian Marshall supported the ordinance, citing concerns about gambling-related harm and the need to fund city programs without relying entirely on grants. He said he’s worked with families hurt financially by these machines.
“It never works out for them,” he said, describing how players often lose more money than they gain. Marshall added that the devices are now common in local businesses, including on Franklin’s Liberty Street and in the back of restaurants.
In Jefferson County, four boroughs currently impose taxes on skill games: Brookville, Falls Creek, Punxsutawney, and Summerville. Brookville and Punxsutawney, the county’s largest economic centers, each levy a $500 per year charge per machine.
Falls Creek has gone further. The borough charges $1,000 per machine, making it the highest known rate in the county.
Summerville, though smaller than Brookville or Punxsutawney, matches their $500 rate.
Other boroughs in the county have yet to follow. Brockway, Corsica, Reynoldsville, and Sykesville do not currently tax these machines. In several boroughs, administrators said the topic had not been raised previously. After hearing what Brookville, Falls Creek, Punxsutawney, and Summerville have implemented, some described it as an option worth exploring.
At the time of publication, the tax status of Timblin and Worthville boroughs is unconfirmed.
Townships also have the authority to tax skill games, but their activity in this area has not been documented. Countywide enforcement remains incomplete.
The local push to tax so-called skill games comes as the state remains undecided on how to handle them. Pennsylvania has thousands of these machines in operation, often in small businesses, but they are not subject to the same rules as casino slot machines. Legal authority is still unclear. The Pennsylvania Supreme Court is currently reviewing whether the machines are games of skill or games of chance. A ruling is expected in the coming months.
Legislative proposals to regulate and tax the machines have repeatedly stalled in Harrisburg. Lawmakers remain divided over how much control the state should exercise. The lack of consensus has left municipalities to create a patchwork of policies on their own.
Supporters of skill games say the devices help businesses earn supplemental income. Opponents, like Franklin City Council member Marshall, raise concerns about the financial effects on residents, especially those with limited income. Without statewide regulation, local leaders are stepping in with ordinances that vary by location, amount, and enforcement.
Brookville and Punxsutawney, for example, each charge $500 per machine, reflecting early efforts by Jefferson County’s largest boroughs to bring some oversight to the devices. Meanwhile, boroughs like Brockway, Corsica, Reynoldsville, and Sykesville, which have no tax in place, are now facing questions about whether they are overlooking a potential source of revenue.
As the state delays action, the list of municipalities considering new taxes could grow. The longer the state remains silent, the more likely it is that local governments will continue filling the gap.
The post Communities Confront Skill Game Surge with Local Taxes and Oversight appeared first on exploreJefferson.
Read the full story here: https://www.explorejeffersonpa.com/politics/2025/12/08/communities-confront-skill-game-surge-with-local-taxes-and-oversight-171052/
