Skill Game
The skill games tax is a new tax on certain gambling machines. The tax is $1,200 per machine every month a machine is operated in Virginia. Game distributors are subject to the tax.
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A portion of the money raised by this tax goes to:
- Virginia’s COVID-19 Relief Fund
- Virginia’s Problem Gambling Treatment and Support Fund
- Localities where skill games are located
Virginia ABC regulates skill games in Virginia.
What types of skill games are subject to the tax?
Skill games subject to this tax include slot machine-type games and similar game machines that have cash, or cash equivalent prizes. You’ll find these sorts of machines in some gas stations, truck stops, restaurants, bars, grocery and convenience stores, and other venues throughout Virginia.
What types of skill games are not subject to the tax?
Games found in family entertainment centers that don’t pay out in cash or cash equivalents aren’t subject to this tax. Games can pay out in tokens, merchandise, or vouchers, and be exempt from the tax, as long as the tokens, merchandise or vouchers:
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- can’t be redeemed for cash
- don’t include alcohol
- can’t be repurchased
- aren’t more valuable than the total cost of playing the games or multiple games.
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See House Bill 881/Senate Bill 971 for more information.
How to file and pay
Complete Form SK-1 and send it to us. Form SK-1 is due by the 20th of the month, and covers activity for the previous month (e.g. the August 20th due date covers machines in use during July).
Other types of Pennsylvania Skill Games
For people who want to try their hand at other types of PA Skill games, there are many other options available in the market. Firstly, you can opt for instant games which is also referred to as scratch-off tickets. Second option is to go for lotto drawings. The lottery holds its own drawings and partakes in multi-state pools too.
As for horse racing, seven tracks are licensed for offering live races. Each of them comes with a race-book. Horse racing tracks may associate with online betting apps to go for remote wagering.
History of Pennsylvania Skill Games
When it comes to the history of Pennsylvania skill games, the first form which was legalized was horse racing. The regulation for the same began in the year 1964. The racing industry, however, dates back 200 years before this. While there were plenty of racing tracks that operated off the books before this, it was only in the year 1964 where the state determined that regulations had to be put in place.
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Lottery act was created on August 26th in the year 1971. This lottery here was a half a dollar drawing where the grand prize was 1 million USD. As for interstate drawings, Pennsylvania Lottery officially partook in this activity in 2002.
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Slowly and eventually, Pennsylvania is also looking at heading towards other fantasy sports. With all of this progress, there is plenty for safe PA skill games and entertainment in this state.