Pennsylvania State Police will pursue criminal prosecution and immediate seizure of skill game machines at unlicensed locations from Wednesday, October 14.
The state Supreme Court’s 120-day safe harbor expires Tuesday, and lawmakers have not passed a plan to tax and regulate the devices.
The agency said that any establishment that possesses, operates, or maintains the machines outside a licensed location will be subject to criminal prosecution and immediate seizure of the devices. Police said enforcement could also include forfeiture of related equipment and proceeds. The agency also stated that a business does not satisfy the law if it simply turns off or unplugs a machine.
Liquor licenses also at risk
Bars and restaurants that keep the machines face administrative citations against their liquor licenses, which could bring fines or the loss of a license, according to City & State Pennsylvania.
Attorney General Dave Sunday urged businesses last month to remove the machines voluntarily.
“We do not want to see searches and seizures at storefronts or bar, social club and restaurant establishments – we would much rather business owners and social clubs comply with the law and take steps to get these illegal devices out of their places of business,” he said in a statement.
The scope of possible enforcement is large. Sunday’s office estimates there are 70,000 terminals in the state across four to six brands. Pace-O-Matic’s Pennsylvania Skill brand accounts for about 20,000 of them.
How the deadline came about
Enforcement follows a June 15 ruling in which the state Supreme Court found that skill games are slot machines under the Gaming Act. Under state law, the ownership, operation, or maintenance of a slot machine without a license from the Pennsylvania Gaming Control Board is a criminal offense. Only licensed casinos and qualifying licensed truck stops may legally operate the devices.
The court gave the General Assembly 120 days to put rules in place. On October 9, it denied a last-ditch request to extend that deadline. State officials said it is all but certain the machines will be illegal once the deadline passes.
Machines come off the floor
Some locations have already removed the devices. A Dauphin County VFW pulled its machines over the weekend, and bar owners, social clubs and other VFW posts have taken similar steps.
Pace-O-Matic said in a statement: “This is no longer about what might happen. Communities across Pennsylvania are now facing the consequences.”
Josh McCahan, owner of Fun Central in Clearfield, said that the machines bring in a couple thousand dollars a month and have helped keep the business going.
“All I’d like to say is that I think that they really need to start considering small businesses and the help that they could give us,” he told WJAC.
Michael Barley, a public affairs officer for Pace-O-Matic, said that he expects no action before the election but hopes for a resolution in the new year.
“You’re going to see a lot of cutbacks on employment and charitable donations, and unfortunately, in some cases, some are going to have to close,” he said.
No bill before the deadline
Lawmakers have named three sticking points in the talks: how much to tax the machines, where that money would go and who would be allowed to host them.
Rep. Dallas Kephart, who represents parts of Cambria and Clearfield counties and serves on the House Gaming Oversight Committee, said it is disappointing that lawmakers appear headed for an impasse. He said that there had been hardly any movement over the last four months.
“Not one bill was brought before the committee to actually do anything on this. I can’t bring a bill up myself, but it’s unfortunate that’s not even going on when this is the current debate,” Kephart said.
Kephart said he is not sure what comes next for lawmakers on the issue. He expects talks to continue, but the timeline is unknown, and so is any possible solution.
Senate Republicans and House Democrats never negotiated a deal. The House also avoided a vote on a skill game amendment offered by Rep. Russ Diamond, the committee’s minority chair.
Gov. Josh Shapiro called on legislators to act during an October 7 gubernatorial debate with Treasurer Stacy Garrity.
“Lawmakers need to come back to Harrisburg. They need to stop campaigning and start focusing on their work – and they need to get this bill to my desk,” he said.
The General Assembly is scheduled to return to session on October 19. Lawmakers could still pass a bill to tax and regulate the machines then, but enforcement will already be underway.
The ruling does not apply to gambling that the Gaming Control Board already oversees. The board licenses the state’s casinos, along with operators of real-money online casinos and Pennsylvania sports betting.