Doug Sprankle, owner of Sprankles Neighborhood Grocery and president of the Pennsylvania Tavern and Players Association, speaks at a rally opposing taxes on arcade games, Wednesday, June 24, 2026. (Photo by Peter Hall/Capital-Star)
Commander Stephen Holmes said the Ephraim Slaughter American Legion Post in Harrisburg is a shelter for veterans returning home after the war.
The arcade machines that keep customers entertained also provide income that not only helps the facility keep its doors open, but also helps men and women who struggle in serving their country, he said.
“You might walk in and break bread with someone who stepped on the ground you were on, or you smelled a smell that brought back memories of all hell,” Holmes said. “These are the people we are fighting for.”
Holmes was one of several hundred veterans, volunteer firefighters and miniature business owners who rallied on the steps of the Pennsylvania Capitol in Harrisburg on Tuesday against taxing skill games like casino slot machines. Legislators proposed a range of tax rates of up to 52%.
Doing so would drain the coffers of charities and the wallets of miniature business owners who earn wages, said Douglas Sprenkle, president of the Pennsylvania Taverns and Players Association, which organized the rally.
“Pennsylvania arcade games have provided support to countless businesses and organizations,” said Sprenkle, whose family owns a chain of independent grocery stores. “The question is not whether gaming should be regulated and taxed – the question is whether lawmakers will take a sensible approach or one that forces these locations to close.”
One legislator suggested the issue could drive a wedge between state budget negotiators as the June 30 deadline approaches.
Sen. Anthony Williams (R-Philadelphia) noted that the crowd consisted of voters, not corporate casino owners. He urged Democratic Gov. Josh Shapiro and House and Senate leaders to listen to them, as well as the nearly two dozen lawmakers who joined him at the rally.
“We have one or two ideas. So when you’re in that room, in the backroom, negotiating a deal, remind yourself that that number of state representatives and state senators will tie up the budget,” Williams said. “There is no understanding without us, because we are real.”
Opponents of the tax say they support legislation sponsored by Williams and Sen. Gen. Yaw (R-Lycoming) that would establish a regulatory framework and impose a monthly fee of $500 per machine, which would raise about $300 million annually.
The arcade games look similar to the video slot machines found in casinos and truck stops throughout the commonwealth. Like slot machines in a casino, they allow the player to wager money to win a jackpot.
However, as stated by the creator of the Pace-O-Matic games, they also contain an element of skill that theoretically allows the player to win every time.
Unlike slot machines, they are not regulated by the state. In recent years, they have filled the empty corners of mom and pop stores, restaurants, gas stations and private clubs, growing in a legal gray zone.
Earlier this month, the state Supreme Court resolved that ambiguity, ruling that skill games are illegal, unlicensed gambling devices. Recognizing the potential for confusion over declaring a statewide corporation unlawful, the court stayed enforcement of its ruling for 120 days to give the General Assembly time to act.
For years, even before the Supreme Court took up the issue, some lawmakers viewed arcade games as a source of crime and social problems that required regulation and taxation. Shapiro proposed taxing the devices for the second year in a row, saying the estimated 70,000 machines could generate more than $2 billion in novel revenue.
After the Supreme Court’s ruling, Pa. lawmakers renew their emphasis on tax regulation of skill games
If the proposed 52% tax were to become law, it would represent the largest tax raise for miniature businesses in state history, they say. Holmes said it would also destroy volunteer fire companies and fraternal organizations such as the American Legion post.
“The money goes to the door and goes back to homeless vets, suicide prevention for vets, tiny homes for vets,” he said, adding that revenue from arcade games also helps the facility pay for backpack giveaways, Christmas celebrations and Easter egg hunts for children in the community.
Jack Paul, deputy fire chief for Deer Lake and West Brunswick Fire Company in Schuylkill County, said arcade games provide operational funding. With just 31 vigorous members in a immense rural area, the fire department no longer has the manpower needed to organize fundraisers.
“What they’ve done for us is we can now pay our bills on time,” Paul said. “We can put fuel in our trucks. We can equip our people with the latest and safest uniforms and equipment.”
Legislative efforts to regulate and tax skill games during last year’s extended budget process ended in a stalemate in the Senate over the tax rate and other details. The casino industry, which has lobbied heavily against arcade games, is taxed at 55% of gross terminal revenues – the total amount wagered on all authorized machines. They pushed for similar stakes in arcade games.
Republican leaders in the Senate have approved a plan to tax skill games at a 35% rate. Prowlwhose district includes arcade game maker Miele Manufacturing, sponsored competing legislation imposing a 16% tax on the machines.
Mark Coolbough, a member of Cresson’s American Legion Post in Schuylkill County, said the arcade games were a “godsend” that helped his organization stay open during the Covid-19 pandemic and subsequent economic turmoil.
“Legislators need to get out of Harrisburg and talk to voters… to better understand what arcade revenue means to us,” Coolbough said. “They need to understand what their actions could mean if we lose this.”
