With the clock running out for Pennsylvania’s “skill games,” industry supporters are trying to convince the state’s highest court that state officials just need a bit more time to draft new rules for the industry to keep it alive.
But the past few days suggest there’s a long way to go before an agreement is reached.
Four legislators — two Democrats and two Republicans — petitioned the state Supreme Court Tuesday asking it to delay the effect of a ruling it made this summer. The court had determined that skill games — which are similar to slot machines but can be found almost everywhere except casinos — were illegal. But it gave legislators until Oct. 13 to come up with a framework for legalizing them.
Tuesday’s filing acknowledged that the legislature had made little headway since the court’s order in June. But, it said, “What has changed is the legislative posture. … Members of the General Assembly have taken up that task.”
As Exhibit A, it attached a sponsorship memo that outlined a proposal offered by House Democrat Danilo Burgos of Philadelphia, who was one of the four legislators seeking the court delay.
Burgos’ proposal, which the filing said was backed by more than 100 members of the 203-member House, sketched out a plan to levy a monthly $500 charge on each machine, and dedicate those proceeds to investing in transportation and first responders.
But less than a day later, the attorney for the legislators asked for their filing to be withdrawn. And when they refiled a new one Wednesday, most of the arguments were the same … but the sponsorship memo and list of sponsors were gone.
The bill itself hadn’t been formally introduced or assigned a number; and the web page on which the original court filing linked to the sponsorship memo can no longer be found.
What happened?
“Not sure,” said Republican state Rep. Jeremy Shaffer, who was among the Burgos bill’s cosponsors. “I was surprised it got pulled.”
A Democratic House member “was kind of slapped down by his own leadership,” said Republican state Rep. Russ Diamond, minority chair of the House Gaming Oversight Committee.
Diamond didn’t identify Burgos by name. But when the legislators refiled their request for a delay, Burgos was no longer listed among the petitioners.
A request for comment made to the office of House majority leader Matt Bradford was not returned Thursday. Burgos also did not respond to a request for comment Thursday.
Diamond, who represents rural and suburban Lebanon County, said he opposed Burgos’ bill because it would’ve set aside money for transportation, “which is secret code for Philadelphia mass transit.” But he said, “I figured, ‘OK [skill games makers] are going for a full-court push here.’ But it didn’t happen.”
Other legislators were wary of discussing the matter publicly, both because it involved a lightning-rod political issue, and because they didn’t want to discuss the dynamics within their ranks.
But several Harrisburg insiders told WESA that, despite the filing’s upbeat assessment of progress, legislators are far from unified around any skill games proposal — and that even those identified as cosponsors of the bill did not necessarily agree on fundamental provisions of it.
Legislators sometimes sign on as cosponsors with the hope or expectation of being able to amend a bill later in the process, and sources told WESA that was the case for at least some of the sponsors of the Burgos proposal.
Lawmakers have also heard from skill-games supporters in their districts who hope to benefit from game revenue — ranging from gas station and bar owners to veterans’ groups and volunteer fire departments. Backing the bill’s introduction, at least, would be a way of responding to those calls for action.
But though there is support in some quarters for the per-machine levy, some Democrats especially are holding to demands for the 52-percent tax rate. Gov. Josh Shapiro, who would be part of any agreement on skill games, reaffirmed his support for a tax at that level during a televised gubernatorial debate Wednesday evening.
Some observers still think a deal is possible, though not by the Oct. 13 deadline. And while Burgos has withdrawn from the request for a court delay, three other legislators signed up for the second go-around: Republican House member Jonathan Fritz and Sens. Anthony Williams (D-Philadelphia) and Gene Yaw (R-Lycoming).
Nor are they alone: The skill-games industry itself is also asking the court to stay its hand.
In the most recent court document, filed Thursday by skill-game manufacturer Pace-O-Matic, an attorney argues that several bills are making their way through Harrisburg. None of the six measures identified in the filing have advanced out of committee, a necessary step before a full House floor vote. They would also have to pass the Republican-controlled Senate, where the majority party has also been divided.
The filing also includes a letter drafted by Westmoreland County House Republican House member Eric Davanzo. Republicans make up 47 of the 50 signatories to the letter, which pleads for a delay to prevent “the hardships being unduly placed on small businesses and nonprofit organizations.”
Indeed, the filing warns that if the court order takes effect and machines are seized by state police, restoring them “will be a herculean task.”