What is the proposed Pennsylvania VGT expansion?
Governor Shapiro just released his 2026-27 budget, and the message is clear: Video Gaming Terminals are expanding across Pennsylvania. The Governor is proposing to bring so-called skill games under the same legal framework as VGTs — regulated by the Gaming Control Board, legally authorized, and available in bars, taverns, restaurants, and other small businesses across the Commonwealth.
$2B+
Annual Revenue
40,000
Machines Statewide
5 VGTs
Per Establishment
July
Proposed Start*
The Governor isn’t just talking about regulation — his budget calls this “Expanding Gaming Opportunities for Small Businesses.” That’s you. Bars, taverns, restaurants, and neighborhood establishments across PA.
What This Means for Your Establishment
Here’s the bottom line on what the Governor is proposing:
• VGTs are going statewide. So-called skill games will be reclassified as Video Gaming Terminals, legally regulated and licensed by the Pennsylvania Gaming Control Board. Machines that are not licensed and do not qualify as a VGT will no longer be operating.
• Up to 5 machines per location. Bars, taverns, and similar establishments can operate up to five VGT machines.
• 40,000 machines across Pennsylvania. The Governor’s plan caps the total number of machines statewide at 40,000.
• This is the single largest revenue item in the entire state budget — bigger than cannabis, bigger than any tax change. Gaming revenue is what makes the rest of the Governor’s budget work without raising taxes.
• The Gaming Control Board will oversee everything. Machines will be tested, licensed, and regulated— giving your customers confidence and giving your business legal certainty.
• A temporary license process will get you up and running faster. The legislation is expected to include a provisional licensing process that allows qualifying establishments to begin operating VGTs while their full license application is being reviewed. This means you won’t have to wait months for final approval — eligible locations can start generating revenue as soon as the regulatory framework is in place.
• Any unlicensed, unregulated machines will no longer be permitted and, with provisional licensing of establishments, we expect to get qualifying establishments up and running promptly and to start generating revenue quickly!
What Happens Next
The Governor’s budget is now before the General Assembly. The legislature will negotiate the details over the coming months, including the final tax rate and licensing process. Triple Diamond is at the table working on your behalf to make sure small business owners like you are positioned to benefit when this becomes law.
The proposed start date is July 1, 2026. We will keep you updated every step of the way as this moves through Harrisburg.
ready to learn more?