Scaffolding is set up in Pennsylvania's House of Representatives so that workers can fix damage from a water leak on the ceiling, Friday, Feb. 2, 2024, in Harrisburg, Pa. Normally, the House chamber would host Gov. Josh Shapiro's budget address to a joint session of the state House and Senate on Tuesday, but instead Shapiro will deliver his address in the Capitol Rotunda. (AP Photo/Marc Levy)
Scaffolding is set up in Pennsylvania's House of Representatives so that workers can fix damage from a water leak on the ceiling, Friday, Feb. 2, 2024, in Harrisburg, Pa. Normally, the House chamber would host Gov. Josh Shapiro's budget address to a joint session of the state House and Senate on Tuesday, but instead Shapiro will deliver his address in the Capitol Rotunda. (AP Photo/Marc Levy)
Aired; June 27th, 2025.
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As Pennsylvania’s June 30 state budget deadline approaches, lawmakers in Harrisburg remain at odds—especially over the controversial issue of whether to tax so-called “skill games.” On this week’s Journalist Roundtable, The Spark explored the state budget standoff with Spotlight PA reporters Katie Meyer and Stephen Caruso, who outlined the widening rift among Republicans and what’s at stake.
“We’re a few days from the deadline, and they are not especially close,” said Meyer. “Everyone agrees on what the problems are—like Pennsylvania’s structural deficit and the court-ordered need to fund education more equitably—but there’s no real consensus on how to get there.”
Among the sticking points is how to handle “skill games”—slot machine-like devices that have proliferated across small businesses, bars, and corner stores statewide. “These machines have existed in Pennsylvania for over a decade,” Caruso explained. “They look and play like slot machines, but because of a small memory-based game component, proponents argue they involve skill, not chance.”
That distinction matters legally and financially. Pennsylvania already regulates and taxes its casino industry, and casinos see these untaxed machines as competition. “There’s been efforts to ban them, but those failed,” Caruso said. “So now the debate has shifted to regulating and taxing them—but nobody agrees on what that tax rate should be or who should oversee it.”
The disagreement has turned into a political headache. According to Spotlight PA reporting, when the Senate advanced a proposal to tax skill games at a rate that machine operators opposed, a flurry of attack ads targeted lawmakers behind the bill. Some Republicans reportedly pushed lobby firms to sever ties with game manufacturers like Pace-O-Matic—a move that Caruso said was “unprecedented.”
Meanwhile, the Shapiro administration, along with House Democrats, has proposed significant investments in public education and public transit. “Democrats are under a court order to make school funding more equitable,” Meyer noted, adding that Governor Josh Shapiro has also prioritized Medicaid and human services spending.
But GOP lawmakers want cuts to certain programs and oppose increased funding for public transportation systems like SEPTA in Philadelphia. “Republicans say they’re open to transit funding only if they get something in return,” Meyer said. “That could mean more funding for roads and bridges.”
With both sides locked in debate, budget talks have slowed to a crawl. Meyer said lawmakers have all but admitted they’ll miss the June 30 deadline—yet the unresolved conflict over skill games, revenue generation, and competing budget priorities leaves Pennsylvanians wondering how long it will take to strike a deal.
