Pennsylvania’s budget is once again caught in a high-stakes fight, and this year, one of the most pressing questions is how to save Philadelphia’s transit system, SEPTA. Lawmakers have patched funding gaps with temporary measures for years, but the system still faces long-term instability. Governor Josh Shapiro’s administration recently approved a $394 million capital transfer from the PA Transit Trust Fund to buy SEPTA two more years of breathing room. While this is a lifeline, it’s not a permanent fix. The larger issue remains: where will Pennsylvania find the sustainable revenue needed to safeguard the future of public transit?
One potential answer comes from an unlikely source—the flashing machines in gas stations, convenience stores and bars known as “skill games.”
Skill games are touchscreen devices that look nearly identical to slot machines. According to manufacturers, the difference lies in the required skill. Instead of relying entirely on chance, players must complete a small task—identifying a winning payline or engaging in a memory puzzle—to determine a payout. Because of this, the industry, spearheaded in PA by a Georgia-based softwaremaker called Pace-O-Matic, has long argued that these machines are not gambling devices and should not be taxed or regulated as such.
Many lawmakers, regulators and public health experts see things differently. To the average player, the experience of using a skill game is nearly indistinguishable from gambling. Critics argue they exploit the same psychological triggers as slot machines, while siphoning money away from the state lottery and licensed casinos—both heavily taxed and used to fund state programs.
Pennsylvania is central to a national debate over handling this rapidly growing industry. Lobbyists for manufacturers and distributors of skill games have poured money into Harrisburg to block or delay legislation that would subject these devices to regulation and taxation. On the other side, casinos, lawmakers and fiscal watchdogs are calling for fairness: if these machines operate like gambling, they should be treated—and taxed—like gambling.
Several proposals have surfaced in the legislature that would create a regulatory framework and levy taxes on skill games, with estimates suggesting the state could bring in hundreds of millions in new annual revenue. One bipartisan proposal from State Senators Gene Yaw (R) and Anthony Williams (D) would cap the number of skill games machines in PA to 50,000 and require a $500 monthly fee. This proposition could generate up to $300,000,000 in additional revenue to the state.
This potential windfall could help fund essential services without raising taxes elsewhere—a critical selling point during tense budget negotiations. The regulation of skill games could be the key to a brighter future for SEPTA and the state’s public transit system.
So what does this have to do with Philadelphia’s buses, subways and trolleys? A lot, actually.
SEPTA is facing a fiscal cliff. Without new funding, the system has warned it will need to raise fares and eliminate entire routes. That would devastate commuters and the city’s economy, especially as Philadelphia prepares for major international events like the 2026 FIFA World Cup. Reliable public transit is essential for residents, businesses, and the millions of visitors expected in the coming years.
Regulating and taxing skill games could provide SEPTA with the stable, dedicated funding it needs. Instead of watching millions flow untaxed into private pockets, the state could redirect a portion of that revenue toward transit. This wouldn’t just keep the trains running; it would allow SEPTA to modernize, expand service, and hold down fares at a time when costs of living are climbing for everyone.
The stakes are personal for Villanovans and college students across the Philadelphia area. SEPTA is a lifeline for attending class, internships, jobs, and social activities. Rising fares or route cuts hit students especially hard, as many already juggle tuition bills, rent, and part-time work. The potential regulation of skill games and the revenue it could generate is not just a policy issue; it’s a matter that directly affects the lives of the next generation of Pennsylvania’s leaders and professionals.
“Both parties’ caucuses in both chambers agree that recurring revenue for SEPTA is a necessity in order to fix the funding crisis,” Andy Smith, a senior political science major at Villanova and political advisor in Philadelphia said.
By tying the regulation of skill games to transit funding, Pennsylvania lawmakers can solve two problems at once: reigning in an unregulated gaming industry and saving a transit system that millions depend on.
Ultimately, the debate over skill games isn’t just about whether pushing a button counts as “skill.” It’s about fairness, responsibility, and vision for the state’s future. Untaxed, unregulated machines are siphoning money away from public coffers while SEPTA and other services teeter on the edge of crisis.
Pennsylvania could unlock a new, sustainable revenue stream if lawmakers choose to regulate and tax skill games. That revenue could stabilize SEPTA, keep fares affordable, and ensure public transit continues to serve the people who need it most—including the next generation of college students shaping the state’s future.
In short, what happens in the corner store could decide the future of Philadelphia’s trains.
