“Some of the posts relied on them to pay bills,” warned John Getz Jr., state adjutant for the Veterans of Foreign Wars (VFW). Following a definitive Supreme Court ruling that declared “skill games” to be illegal slot machines, VFW posts across Pennsylvania now face the genuine possibility of closure, while dozens of industry workers have been handed termination notices.
The crisis is the result of a protracted legislative deadlock in Harrisburg. Despite years of lobbying from operators and venue owners, the Pennsylvania Legislature and Josh Shapiro failed to reach a legalization agreement before a court-mandated 120-day grace period expired on October 13. As reported by The Center Square, this failure has effectively criminalized a revenue stream that supported thousands of small businesses and military service organizations.
The Immediate Fallout for Workers and Veterans
The economic ripple effect was felt instantly. Joe Calla, chief operating officer for Republic Amusements, reported that his company had to pull thousands of machines from 1,100 locations across the state. The operational collapse led to the issuance of 60-day termination notices to 81 employees.
For the VFW, the stakes are more than just payroll. Getz had warned Pennsylvania posts for years that these games were not a reliable long-term financial strategy, but the reality of their removal is hitting hard. Many posts used the income to cover bills, meaning the loss of these machines could lead to the shuttering of local chapters that serve as vital community hubs for veterans.
The state’s enforcement response was swift. In the ten days following the October 14 deadline, Pennsylvania State Police visited 8,007 establishments to ensure compliance. According to agency spokesperson Sgt. Logan Brouse, troopers found that 7,833 of those locations had already removed the machines—a compliance rate of roughly 98%.
The 52 Percent Sticking Point
The core of the conflict isn’t whether the games should be legal, but how they should be taxed. Governor Shapiro has remained firm on a specific requirement: any legalization scheme must include a tax rate of 52%, mirroring the levy placed on traditional casino slot machines. This high threshold has been a primary barrier to consensus in the General Assembly.
The political math is complicated by the timing. With the general election scheduled for Tuesday, legislative action is frozen. The newly reconstituted Legislature will not meet in a traditional voting session until January, leaving a two-month void where businesses and nonprofits must scramble to replace lost income.
“We have been talking to them for six to eight years, asking for this legislation,” Calla said of the Legislature. “This should be a top priority.” Pennsylvania. Because
Election Results Will Determine the 52% Tax Rate
Whether a solution emerges in January depends largely on the election results. Currently, Republicans and Democrats share control of the General Assembly. If Democrats secure control of both chambers and the governor’s office, the path to the 52% tax rate becomes significantly smoother.
Republican Rep. Brad Roae of Crawford County noted that such a trifecta would make an agreement on the tax rate more likely than if Republicans maintain a foothold in the legislature. Meanwhile, Rep. Jim Struzzi, the top Republican on the House Appropriations Committee, emphasized the urgency for “mom-and-pop” businesses and local clubs that are now struggling.
Democratic state Rep. Danilo Burgos of Philadelphia is already reviewing his previous proposal to suggest “tweaks” for the new session. Burgos argues that a legalized, taxed framework would expand the state’s tax base and provide funding for critical infrastructure like roads and bridges, rather than allowing profits to flow toward larger corporations.
The immediate future remains bleak for the 81 terminated employees and the VFW posts operating on the brink. Until the new session begins in January, the only certainty is that the machines remain in warehouses and the police continue to investigate the remaining 2% of non-compliant venues.
