PA HB2046

Reduces the daily slot machine tax rate for Category 4 licensed facilities from 50% to 32% of gross terminal revenue

Creates a comprehensive regulatory framework for skill video gaming in Pennsylvania, administered by the Department of Revenue, with three license categories: distributors ($1,000,000 initial fee), operators ($100,000 initial fee), and establishments ($1,000 initial fee)

Imposes a 16% tax on gross profits from skill video games, with revenue distributed 50% to the General Fund, 25% to the Pennsylvania Standardbred Breeders Development Fund, and 25% to the Property Tax Relief Fund

Limits establishments to 5 skill video game terminals (10 for 501(c) organizations with liquor licenses), requires players to be 18 or older, sets maximum $5 per play and $5,000 maximum winnings per game

Establishes criminal penalties including first-degree misdemeanor for operating unlicensed skill video games, third-degree felony for altering game software or operating unapproved equipment, and civil penalties up to $25,000 per violation plus $1,000 per day for continuing violations