On a recent Wednesday, a heated debate unfolded as several gas station owners voiced their disapproval of a proposed legislative bill aimed at increasing the tax on skill games from 5% to 15%. This bill, which also seeks to enforce age restrictions for players and limit advertising, has drawn attention from various stakeholders. Out of those who spoke, eight were against the legislation, while three showed their support.
Skill games, which are akin to slot machines but require some player input, are commonly found in gas stations and are deemed legal outside casino environments. Former state Sen. John Lowe was among those opposing the bill, urging the Revenue Committee to consider the ramifications for small businesses that might only have one or two such machines.
“When I look at this, you have a casino with slot machines. They may have 50, 60, 100, 200 slot machines. They can make that 15 percent,” Lowe remarked, highlighting the tax disparity. Casinos, which pay a flat 20% tax on their revenue, are in a different position compared to smaller establishments like gas stations, grocery stores, and VFWs, where skill games can be a crucial source of supplementary income.
The proposed tax increase has met with resistance from gas station owners who argue that it would financially strain small businesses. In contrast, Sen. Ashlei Spivey, the architect of LB920, contended that businesses threatened by the loss of skill games resemble casinos more than traditional enterprises.
Sen. Spivey also suggested that the majority of the additional tax revenue be allocated to a newly established child care subsidy fund, asserting, “We know that child care is vitally important to economic development.”
Spivey pointed out that Nebraska hosts around 6,000 skill game machines, nearly double the number of slot machines, which increases accessibility for young people. A proponent of the bill expressed hope that the revised tax rate might reduce the prevalence of these machines across the state.
Despite the opposition, one gas station operator mentioned that her business would continue running skill games even with a 15% tax rate.
