Skill game tax revenue by state in 2026 is mostly projected, not collected. Nebraska taxes skill-game profits, and its Legislature has passed a bill doubling the rate to 10%. Georgia takes a share of COAM revenue through its Lottery. Texas charges a flat $60 per-machine tax on all coin-operated machines. Pennsylvania and Virginia have no skill game tax, only competing projections.
How to read a skill game revenue figure
Revenue numbers in this area fall into three groups: (1) money a state has actually collected, (2) estimates from fiscal offices or administrations, and (3) projections from the industry or from lawmakers backing a bill. These are different kinds of evidence, and headlines often treat them as one. Two further cautions apply throughout this report. A tax permit or license fee is an administrative obligation, and paying it does not show that a machine is lawful under a state's criminal law. And a flat fee per machine tells you how many machines are permitted, not how much money they take in.
Pennsylvania: the biggest market, with no tax yet
On June 15, 2026, the Pennsylvania Supreme Court ruled that skill games are slot machines under the Race Horse Development and Gaming Act and Crimes Code Section 5513, and imposed a 120-day stay before the decision takes effect (Spotlight PA, June 15, 2026). According to a client alert from the law firm Tucker Arensberg, the ruling reversed POM of Pennsylvania, LLC v. Department of Revenue and In re Three Pennsylvania Skill Amusement Devices (Tucker Arensberg, June 18, 2026). Spotlight PA reports that about 70,000 machines operate in the state, in taverns, gas stations and corner stores.
The tax proposals are far apart. Spotlight PA reported that Gov. Josh Shapiro proposed 52% (matching slot rates), Senate Republican leadership 36%, Sen. Gene Yaw 16%, and Rep. Danilo Burgos a flat $500 per machine per month (Spotlight PA, June 17, 2026). The revenue estimates are just as wide: about $300 million a year under the Burgos fee, up to $2.1 billion a year by decade's end at the high end of the Shapiro administration's estimate, and up to $1.2 billion a year in the Independent Fiscal Office's analysis of the governor's plan. All of these are estimates. None is a collection.
The deadline is Oct. 13, 2026. Spotlight PA reports that from Oct. 14, machines outside licensed casinos and truck stops are subject to seizure, and it quotes State Police: "The [State Police] and other law enforcement agencies may take enforcement action." The same report describes an industry-backed proposal for "as many as 50,000 machines" with "a $500-a-month fee on each device," and notes that lawmakers returned Sept. 28 with six scheduled session days before the deadline (Spotlight PA, Sept. 17, 2026). As of this writing, the legislative outcome had not been settled.
Virginia: projections that went unrealized
Gov. Abigail Spanberger vetoed Senate Bill 661, which would have legalized skill games, on April 10, 2026. Her release said: "The absence of a centralized regulatory authority for gaming creates gaps in oversight that threaten the Commonwealth." She added that legalization would "strain an already fragmented system and introduce thousands more machines without a comprehensive regulatory structure." She also cited Virginia ABC data from 2020 to 2021, when skill games were legal, showing the machines "disproportionately located in communities where higher percentages of the population live below the poverty line" (Office of the Governor of Virginia).
VPM reports that supporters lack the two-thirds majority to override the veto. It cites The Commonwealth Institute for Fiscal Analysis as saying the House plan projected skill games, together with fantasy sports, would bring in "north of $267 million," and Sen. Aaron Rouse as citing an industry projection of "more than $350 million in annual tax revenue" (VPM, April 21, 2026). Neither figure will be collected while the veto stands.
Nebraska: an existing tax, now doubled
Nebraska already taxes skill-game profits, at 5%. Nebraska Public Media reported that LB901 raises that rate to 10%, with "about $7 million of the increased revenue next fiscal year" coming from the change, and that the bill also raises annual skill-game licensing fees. The same report quotes Sen. Teresa Ibach as saying the machines grew from 300 in 2007 to 6,000 now, and states that "Courts have ruled the machines are not gambling devices" (Nebraska Public Media, March 18, 2026). After the session ended, the outlet reported that lawmakers closed the budget gap partly through "tax increases on items including so-called skill games (LB901)" (Nebraska Public Media, April 17, 2026). The $7 million is a projection of new revenue, not a total of collections.
Georgia: a revenue share through the Lottery
Georgia regulates coin-operated amusement machines (COAMs) through the Georgia Lottery. House Bill 353, passed in 2024, raised the state's share of COAM proceeds from 10% to 13%. The extra 3% was estimated to produce about $40 million a year for HOPE and pre-K (Capitol Beat, March 2024). For a historical baseline, the AJC reported that in fiscal 2022 Georgians spent $4.8 billion on COAMs and won $3.4 billion, on about 34,000 machines in more than 6,200 stores, and that the state's 10% share came to $141 million (AJC, May 4, 2023).
One common mix-up: the Georgia Lottery's record FY2026 education transfer of $1,540,868,000 covers the whole Lottery. The release does not break out COAMs, so it is not a COAM figure (Georgia Lottery, July 16, 2026). We could not verify a COAM-specific number for FY2026.
Texas: flat fees, not a skill game revenue line
The Texas Comptroller requires a $60 annual occupation tax permit for every coin-operated machine available to customers. License fees include General Business ($200 to $1,000), Registration Certificate ($150 to $300), Import ($500 to $1,000) and Repair ($50 or $100) (Texas Comptroller). The Comptroller's page does not specifically mention skill machines or 8-liners. Because the tax applies to all coin-operated machines, any Texas total would not be a skill-game figure, and we could not verify collection totals. Paying the tax also does not settle whether a machine is lawful in Texas. That question falls under Penal Code Chapter 47 and Occupations Code Chapter 2153, and you can track pending bills at Texas Legislature Online.
Side-by-side comparison
| State | How revenue is raised | Headline figure | Type of figure |
|---|---|---|---|
| Pennsylvania | None yet; proposals range from 16% to 52%, or $500 per machine per month | About $300M to $2.1B a year; IFO up to $1.2B | Estimates |
| Virginia | None; SB 661 vetoed | $267M+ (TCI-cited House plan); $350M+ (industry) | Unrealized projections |
| Nebraska | Tax on profits, 5% rising to 10% under LB901 | About $7M in new revenue next fiscal year | Projection |
| Georgia | State share of COAM proceeds, 10% raised to 13% | $141M (FY2022, at 10%); about +$40M/yr from HB 353 | Reported baseline plus estimate |
| Texas | $60 per machine plus license fees, all coin-operated machines | Not verified | Not a skill-game measure |
What these figures don't prove
None of these numbers shows that a machine is legal, that it is profitable at a given location, or how big a market is. The tax bases differ too: a percentage of profits, a share of proceeds, a flat fee and a proposed fee per device can't be compared directly. A Nebraska court outcome or a Georgia revenue share says nothing about legal status in Texas or Pennsylvania.
For operators
Our editorial recommendation, not a legal requirement: when a vendor or location partner points to tax payments or revenue projections, write down the source and date, and keep tax compliance separate from legality. Our vendor comparison checklist helps you record those questions and the evidence for each answer. It does not provide legal approval or verify a vendor.
Related reading
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Pace-O-Matic Company Profile: What Skill Machine Operators Should Know
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Why South Carolina's Video Poker Ban Still Haunts the Skill Game Industry
Sources
This article was prepared with AI assistance from a source-based research brief. Consult primary sources and qualified counsel for legal decisions.
Reporting is for information, not legal advice. A vendor listing or the term skill game does not establish a machine's legality in any jurisdiction.