Skill games bill aim of rally-goers

Local advocates call on lawmakers to pass measure to save industry

About 130 people filled a room at the Bavarian Hall Tuesday to express support for passage of a state law that would rescue the "skill games" industry from a June 15 ruling of the state Supreme Court that held the devices are essentially slot machines and must be regulated as such -- that is, must be located only in casinos and specially licensed truck stops.

Speakers at the rally organized the Bavarian membership, DeLeo Games and manufacturer paceOmatic urged representatives of businesses and organizations that operate the games and depend on the revenue to pressure lawmakers to pass a matched pair of bills that would "establish a fair regulatory framework" that would protect their businesses while generating significant tax revenue for the state, according to a flyer distributed at the rally.

The bills call for a total fee of $500 per machine per month to go to the state, with shares split among the location, the game operator and the game developer, with oversight by the State Lottery Commission -- an arrangement that would generate $300 million in state revenue, while allowing bars, restaurants, veterans groups and fire companies to continue reaping revenues they need, according to advocates who spoke.

The bills would allow up to five terminals in licensed establishments and up to 10 at fraternal organizations, while grandfathering the number of terminals that are already in place.

If the bills were put to a vote, they would pass overwhelmingly, but leadership hasn't been cooperative so far, being under the influence of casino interests, which, along with Gov. Josh Shapiro, have proposed regulating skill games like traditional slots, with a 52% tax -- a percentage that would be both unfair and ruinous to the industry, according to rally speaker Michael Barley, chief public affairs officer for paceOmatic.

The two Altoona-area state representatives, both Republicans -- Andrea Verobish of the 79th District and Scott Barger of the 80th -- are firmly in support, according to Barley. State Sen. Judy Ward, R-Blair, also supports the cause, Ward said in a phone conversation after the rally.

There is a proposal to extend the court's 120-day stay from the current end date of Oct. 13 through April 13, 2027, to give the General Assembly more time to come up with a satisfactory solution, according to Katie Link, whose father Tom is the owner of the company and whose great-grandfather Joe DeLeo Sr. started the business in 1945.

The skill games segment of the business has enabled DeLeo to hire more people, pay them competitive wages and benefits, buy vehicles and equipment, expand its facilities and to make donations to volunteer fire companies, charitable organizations, youth programs and other causes, according to Link.

The five machines at his Martinsburg laundromat enable Allen Bassler to keep the business clean of red ink, Bassler told the group.

The machines aren't making his family rich, but they have helped business recover from a fire, help to ensure local people have a convenient place to clean their clothes in the absence of working machines at home, help the shop maintain its equipment and help the family go on a decent vacation at the end of the year, Bassler said.

Without them in a back room at the laundromat, the operation would go "year-to-year," Bassler said.

"It's about keeping a small business (going)," he said.

Dave Servello's skill machines at Family Pizza on Pleasant Valley Boulevard have helped ensure he can give his employees raises, while also helping to pay the bills, Servello said.

Barley urged attendees to contact lawmakers and not to be discouraged by a lack of response or an unfavorable response, as all such advocacy is logged into the "system" and seen by leadership.

The proposed new law would create a new legal category for skill games, removing them from the slot machine categories in the Gaming Act and Crimes Code, where the Supreme Court found they belong under current law, according to an official at the rally.

Mirror Staff Writer William Kibler is at 814-949-7038.