The Pennsylvania Supreme Court has established that skill game machines should fall under the state’s gambling regulations, putting an end to years of controversy and legal uncertainty.
No Escape
The decision that passed with almost unanimous vtes says that machines that are commonly known as “skill games” meet the legal definition of slot machines, even though players can influence outcomes through elements of skill.
The ruling centers on thousands of machines located in convenience stores, bars, restaurants, gas stations, social clubs and other businesses across Pennsylvania.
Operators have long argued that the games differ from traditional slot machines because they allow players to improve their chances of winning through memory and decision making.
Writing for the majority, Justice David Wecht said Pennsylvania lawmakers had already addressed the issue when they updated the state’s Gaming Act in 2017.
“Our General Assembly already has spoken clearly on this subject,” Wecht wrote, adding that the inclusion of terms such as “skill slot machine” and “hybrid slot machine” in state law makes it clear that a skill element does not exempt a machine from gambling regulations.
The court concluded that a machine does not escape the legal definition of a slot machine simply because skill plays a role in determining payouts.
The decision is a major victory for Pennsylvania’s casinos, gaming regulators, state police and lottery officials, all of whom have argued for years that the machines operate as unregulated gambling devices.
Pennsylvania Attorney General Dave Sunday welcomed the ruling.
“Today’s ruling is a significant victory for consumers, taxpayers and the rule of law in Pennsylvania,” he said. “Pennsylvanians deserve protections that ensure games are fair, transparent, and operated within the bounds of the law.”
120 Days to Decide
The court’s decision will not go into effect immediately, as the justices imposed a 120-day stay that will allow the machines to keep operating while lawmakers work out possible legislation to regulate and tax the industry.
Industry leaders were not shy to verbalize their disappointment regarding the outcome. Pace O Matic, one of the largest suppliers of skill games in Pennsylvania, said that the ruling ignores past lower court decisions that had deemed the machines legal.
The company also issued a warning regarding the future of more than 10,000 small businesses and nonprofit organizations which could directly feel the impact if lawmakers fail to establish a proper regulatory framework.
The ruling will now move to the Pennsylvania General Assembly, where lawmakers will decide if skill games should be formally legalized, regulated and taxed in the months ahead.