One of the most persistent myths in Pennsylvania’s gaming debate is that every dollar spent on a skill game comes at the expense of the Pennsylvania Lottery. That discussion overlooks, however, what retailers, consumers and even lottery revenue figures are telling us: Skill games and lottery products are not competitors. In many cases, they are complementary forms of entertainment that help local businesses succeed.
A customer who stops at a convenience store, restaurant, bar, veterans club or fraternal organization to play a skill game often makes other purchases as well. They may buy a cup of coffee, a sandwich, gas or a lottery ticket. This benefits the business and, in many cases, lottery sales. At my grocery store, I have both lottery machines and skill games. Rather than competing with the lottery, skill games complement it.
Lottery numbers themselves tell the story. If skill games were truly harming lottery revenues, you would expect to see lottery sales declining. Instead, lottery revenues have continued to grow.
According to recent Pennsylvania Lottery financial reports, traditional lottery revenue increased nearly 4% compared to the previous year, while lottery revenue grew approximately 28%. Those are not the numbers of an industry facing a financial threat. They are the numbers of a lottery that continues to evolve and expand.
It is also a fact that small businesses like mine that had lottery machines for years say once they put in legal skill games, their lottery sales increased. The Pennsylvania Lottery allows stores to boost their standard 5% commission if they meet specific sales goals. Some places say they never hit this mark with the lottery until they added skill games.
At the same time, skill games have become an important source of support for thousands of small businesses, veterans organizations, volunteer fire companies, fraternal clubs, restaurants and bars. For many of these establishments, skill game revenue helps pay utility bills, employee salaries, building maintenance costs and community donations.
Consumers make choices every day about how they spend their entertainment dollars. Some purchase lottery tickets. Others visit casinos. Some enjoy sports betting. Others choose skill games because they prefer a form of entertainment that rewards concentration, practice and patience.
Skill games also have a broad economic impact that local communities did not see before they were added to the Pennsylvania market. Volunteer fire companies use skill game proceeds to purchase lifesaving equipment; some veterans organizations keep their doors open because of skill game revenue and small businesses survive difficult financial periods thanks to the additional income skill games generate. Those benefits ripple throughout the state. Ask these entities and they will tell you there isn’t anything to replace the supplemental income they get from skill games.
None of this takes away from the important senior programs the lottery funds. Quite the opposite.
Pennsylvania’s older adults deserve strong and sustainable funding for the services they rely on. But it is misleading to suggest that challenges facing senior programs are caused by skill games.
Across the country, agencies serving older adults are grappling with rising costs, increasing demand, government funding cuts, workforce shortages and demographic changes as the senior population grows — especially here in Pennsylvania. These are significant challenges that will require thoughtful solutions.
The good news is Pennsylvania does not have to choose between supporting seniors and supporting small businesses.
Legislation under consideration would establish commonsense regulation and taxation for skill games, generating new annual revenue for the commonwealth. That funding can be used for a variety of public priorities determined by elected officials, including programs that benefit older adults.
Many lawmakers recognize legal skill games for what they are: a form of entertainment that supports local businesses and nonprofits and can provide substantial new revenue for Pennsylvania programs.
The General Assembly needs to pass Senate Bill 1079, sponsored by Sen. Gene Yaw and Sen. Anthony Williams, or House Bill 2213, sponsored by Rep. Danilo Burgos and Rep. Jonathan Fritz, both of which establish a regulatory structure and implement a monthly skill game per-terminal $500 fee projected to generate approximately $300 million annually in new revenue for the state.
The evidence points to a simple conclusion. Skill games and the lottery co-exist. In many communities, they are helping one another succeed.
The conversation should not be about choosing one over the other. It should be about creating a fair, regulated skill-game framework that allows both to continue serving Pennsylvania consumers, communities and businesses.
Ryan Sprankle is an owner of Sprankle’s Neighborhood Market with stores in Armstrong and Butler counties.