New Kensington anticipates generating about $30,000 in additional revenue under a proposal that would increase the license fee for mechanical skill games.
Council this week advanced a plan to increase annual license fees for skill games from $300 to $750, which is an increase of about 150%.
“It’s my opinion that once they legalize the games of skill, this stream of revenue is going to be gone for us,” said City Clerk John Zavadak. “It kind of makes more sense to try to get it while we can.”
Found in establishments like bars and gas stations, skill games look similar to slot machines. The machines allow players to benefit from “skill” — often an ability to recognize patterns — to improve their chances of winning.
New Kensington realizes about $20,000 annually from skill game license fees, Zavadak said. The proposal would increase that to about $50,000.
Council will take another vote on the proposal at its November meeting. It would become effective next year.
“We’re looking for new sources of revenue,” Zavadak said. “We’ve looked at what we can do, and it’s a way to get revenue that’s not really hurting anybody.”
Skill game vendors, instead of the stores where the machines are located, often pay the fee, Zavadak said.
License fees for pool tables, shuffleboards, juke boxes, bowling, pinball machines, dart boards and other devices will remain at $100 per year, Zavadak said.
