The Pennsylvania Supreme Court is on the verge of making a landmark decision regarding the fate of electronic gaming terminals, frequently spotted in bars and convenience stores, and whether they should indeed be classified as illegal gambling machines.
Under the Microscope: Skill Games or Illegal Slots?
This pivotal decision follows an appeal by the attorney general’s office, which is contesting a lower court’s ruling. The ruling in question tagged these “skill games” as being dependent more on player prowess than mere chance, thereby distinguishing them from traditional slot machines.
For years now, the state has maintained that these games operate unlawfully without a gambling license and can be confiscated by law enforcement. On the flip side, manufacturers, distributors, and operators of these games argue that they are within the bounds of state law and do not fit the profile of regulated gambling. This ruling promises to shed light on how these machines should be classified legally for the first time, remarked Jeffrey Rosenthal, an attorney representing Parx Casino in Philadelphia.
Both courts and legislators have been entangled in debates about their status for years, with similar debates raging in Texas, Virginia, and Kentucky.
Casino Titans Cry Foul Over Skill Games
The Pennsylvania Lottery and the state’s casino juggernauts lay the blame for significant revenue dips squarely on skill games. Casinos contribute approximately 54% of their slot machine revenue in taxes to the state coffers. Operators argue that skill games pose unchecked competition against slots, all while skating by tax-free. This landscape boasts at least 67,000 such terminals across Pennsylvania — an unparalleled figure nationwide, according to the American Gaming Association‘s estimates.
Judgment Day: The Supreme Court Weighs In
Attorney General Michelle Henry’s office emphasized in its brief to the court that these devices are ubiquitous and desperately need a clear legal directive. The justices are set to deliberate on whether these so-called “skill” games, which boast elements of player involvement, qualify as gambling apparatuses under existing statutes.
Commonwealth Court Judge Lori Dumas noted previously that despite their initial slot machine appearance, these devices incorporate a memory game element, setting them apart.
This legal saga traces back to Dauphin County in 2019, when state police swooped in and seized Pennsylvania Skill-branded machines from Champions Sports Bar in Highspire.
No criminal charges emerged from this incident, but the bar faced an administrative citation. Champions, alongside Capital Vending Company—owners of the contentious machines—sued for their return and emerged victorious in county court, a decision subsequently upheld by the Commonwealth Court. Current legislative efforts seek to either ban or impose regulations on these terminals, with the industry lobbying for regulation to forestall further machine seizures.
