House Gaming Oversight Committee Held A Hearing On Bill Legalizing Games Of Skill

On October 30, the House Gaming Oversight Committee held a hearing on House Bill 1598 (Moul-R-Adams) which would amend the Local Option Small Games Of Chance Act to legalize games of skill for those nonprofits, clubs and taverns with either a small games of chance license or tavern gaming license.

The bill would also allow the nonprofits, clubs and taverns to keep more of their winnings, raise prize limits and make other numerous changes to the law (sponsor summary).

Kevin O’Toole, Executive Director of the PA Gaming Control Board, said there are several changes needed to the bill to clarify the role of the Board, if there is to be one.  He noted games of skill are presently illegal and the Board has no role regulating them.

One of the fundamental responsibilities given to the Board is to set standards for skill-based games, which O’Toole said was “illusory.”  He said you cannot set standards for a game where the outcome is dependent on the skill of the player, not a random number generator as in gambling.

Major Scott Miller, State Police, said illegal gambling is growing in Pennsylvania and lacks protections for consumers, play by minors and documentation of tax reporting of winners.  It also results in an economic loss to legalized gambling and the state lottery.

Miller said the State Police is aware of one operator of illegal skill games with over 10,000 functioning machines in the state generating which can generate over $500 per week per machine.  He said the State Police have also seen “supervised loan-sharking” at some convenience stores based on the gambling operation.

Representatives of the PA Federation of Fraternal & Social Organizations, PA Association of Natural Chartered Organizations, Veterans of Foreign Wars all supported House Bill 1598 either because they were seeking clarity in the definition of skill games, want to find a way to attract and keep members and want to keep more money from their small games of chance operations.

Copies of written testimony is available--

-- Kevin O’Toole, Executive Director of the PA Gaming Control Board, 

-- Major Scott Miller, Director Of Liquor Enforcement for the State Police,

-- Ted Mowatt, Executive Director, PA Federation of Fraternal & Social Organizations

-- Ted Helsel, Secretary, PA Association of National Chartered Organizations

-- John Getz, PA Department of Veterans of Foreign Wars

-- Kit Watson, PA American Legion

-- Drew Svitko, PA Lottery [written testimony only]

-- Chuck Moran, PA Licensed Beverage & Tavern Assn. [written testimony only]

Videos of House Gaming Oversight Committee hearings are usually posted on its video webpage, but as of this writing this hearing is not yet available.