Harrisburg, Feb. 25, 2022 (GLOBE NEWSWIRE) -- At a Senate budget hearing this week, a state senator raised serious questions about a Pennsylvania Lottery study on legal skill games, asking why it was completed with significant input from a company that wants to compete with skill games.
Sen. Chris Gebhard, of Lebanon County, asked a state official why Lottery vendor Scientific Games, which is behind many video gaming terminals (VGTs) in Pennsylvania, was deeply involved in a negative study about the impact of skill games on the Lottery. When Drew Svitko, executive director of the Lottery, said he had faith in the study, Gebhard replied “that is a pretty big leap of faith.”
Mike Barley, spokesman for Pennsylvania Skill, which is powered by Pace-O-Matic, also said he believed it was a conflict of interest for a major player in the VGT space to be involved in such research.
Economic studies from a respected independent economist from one of our Commonwealth’s most prestigious universities show there is no impact from skill games on Lottery sales. The professor’s studies, in fact, show the presence of skill games in a location may enhance lottery sales.
Gebhard read from an article that quoted Scientific Games as saying it had won 85 percent of the VGT market at Pennsylvania truck stops. The senator asked while skill games “have certainly caught your eye,” why wouldn’t VGTs also be considered competition to Lottery sales? While the Lottery has tried to focus attention on skill games, it has been silent on its vendor’s VGTs.
“We have always questioned the Lottery’s harsh spotlight on skill games, especially as the Lottery continues to break sales records,” said Barley. “Lottery tickets are sold at truck stops, but for some reason, VGTs are not a concern to officials.”
Also during the hearing, Gebhard asked the Lottery why its games are not all manufactured in Pennsylvania creating jobs here. Pennsylvania Skill games are made in Williamsport and many of the parts used to build the games come from state businesses.
Residents, small businesses, fraternal organizations, veterans groups, seniors and charities all benefit from skill games. Small businesses and fraternal groups where skill games operate say they count on revenue from the games. Skill games could assist the state even more financially if proposed legislation passes that further regulates skill games and imposes additional taxes on the games.
“At a reasonable tax rate, skill games could provide over $250 million in recurring revenue to the Commonwealth annually,” said Barley. “Pennsylvania Skill supports thousands of small businesses and fraternal clubs already, and now we are looking to establish a long-term relationship with the Commonwealth where our industry can contribute significant tax revenue to address issues the legislature deems appropriate.”
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