Pittsburgh City Councilman Anthony Coghill is rolling out a plan to slap a new fee on so-called "skill games," the coin-operated, cash-payout video terminals that have quietly multiplied in bars, corner stores, and small storefront arcades. Pool tables and jukeboxes would get folded into the mix, too. Coghill says the idea is simple: find fresh money for a city under budget strain while Harrisburg and the courts sort out what, exactly, these machines are under Pennsylvania law.
According to CBS Pittsburgh, his proposal would create a three-tiered "Mechanical Amusement Device Tax." Businesses would pay $1,000 a year for each skill game, $100 for mid-range machines such as claw games and arcade-style terminals, and $10 for basic games like darts or shuffleboard. Players would not be taxed directly, and Coghill told reporters the lower fees for simpler machines are meant not to impact businesses to a large degree.
What the bill would cover
Council staffers say the measure is modeled on levies already in place in some Allegheny County municipalities and is aimed squarely at storefronts that have effectively turned into round-the-clock mini-casinos, WPXI reported. Coghill has pitched the tax as a way to bring in new revenue that, in his words, does not further burden homeowners and renters, according to the station.
State ruling clears the way
The local push comes on the heels of a Pennsylvania Supreme Court decision that found many cash-payout terminals fit the statutory definition of slot machines, which opens the door to taxation and stricter regulation. The Philadelphia Inquirer reported that the high court also ordered a 120-day "safe harbor" period, pausing enforcement while lawmakers in Harrisburg draft rules.
Coghill told CBS Pittsburgh he wants the city to move quickly so any local fees stand a better chance of being grandfathered into whatever state framework eventually emerges. He estimated the tax could bring in roughly $2 million to $3 million a year. City officials say they are still ironing out how enforcement would work in practice, including who would inspect machines and how fines or potential seizures would be handled. Coghill is aiming to have draft language ready before budget season in September.
Money and political stakes
WPXI notes that Coghill has linked the measure to revenue gaps created by falling downtown property assessments and other shifts in the tax base. At the state level, the Independent Fiscal Office has modeled a far larger payday if skill devices are formally regulated and taxed, estimating roughly $487 million in the first year under a 52 percent gross-terminal-revenue tax, according to an IFO budget brief. Axios reports that Gov. Josh Shapiro has backed a similar 52 percent rate in his budget plan.
Who stands to gain, and who objects
According to Pittsburgh Post-Gazette coverage, small businesses and veterans' organizations that host the machines warn that heavy taxes could wipe out a key revenue stream they have come to rely on. On the other side, casinos and some lawmakers are pushing for higher rates, arguing that anything less fails to level the playing field with tightly regulated gambling halls. It has turned into a charged debate over tax rates, public-safety concerns, and whether chasing quick cash could carry long-term economic downsides.
What comes next
Coghill plans to formally bring his bill to City Council this summer, while city staff continues to hash out enforcement details and refine revenue estimates. If lawmakers in Harrisburg act within the Supreme Court's 120-day window, they could set a statewide system for regulating and taxing skill games. Axios has noted that the safe-harbor period runs to roughly October 13, a timeline that will help determine whether Pittsburgh's local tax stays a stopgap measure or ultimately folds into a broader state regime.
