Pennsylvania Supreme Court Rules Skill Games Are Slot Machines

On Monday, the Pennsylvania state Supreme Court ruled that, under Pennsylvania law, skill games are considered slot machines. 

That said, the ruling also included a provision where law enforcement can't take any action against them for 120 days. As a result, the state legislature has four months to decide whether to regulate the machines, which are prominently available at places like gas stations, corner stores, and more. 

Right now, in Pennsylvania, there are an estimated 70,000 of these machines. 

Republicans called addressing skill games a “critical piece” of resolving the budget, while Democrats said the "caucus is still reviewing the decision," per Spotlight PA.

The Republicans control the state senate, while Democrats lead the House. 

Spotlight PA also noted that taxing skill games could generate about $1 billion in annual revenue for the state. 

Police have taken action against illegal gambling operations, including one that offered a  "Queen of Hearts" game and also had bingo and skill game machines. 

Supreme Court Overturns Lower Court Interpretations

There were two cases involving skill games before the court, and there were rulings on both. 

According to Spotlight PA, one of the cases involved a bar and a skill games supplier filing a petition for the return of property after police seized the machines. The Dauphin County Court of Common Pleas and Commonwealth Court ruled that the games were skill-based and not subject to slot machine regulations. 

Then there was one involving Pac-O-Matic, a "major skill games developer and distributor." They sued the state to determine whether the games were legal. Commonwealth Court said existing law didn't apply to skill games.

In both of those cases, however, the majority of the state Supreme Court ruled their interpretation as "deeply flawed". It ruled that skill games are slot machines "several times over" as it fits the definition of a “a coin-operated gambling machine that pays off according to the matching of symbols on wheels spun by a handle.”

Now, the state Supreme Court says that these games do fall under the Gaming Act. 

“Naturally, because all that follows is a consequence of statutory law, our General Assembly also remains free at any time to take whatever legislative action it may deem appropriate,” they wrote, adding that their decision “does not constitute an endorsement of, any particular policy view concerning the proliferation of ‘skill games’ throughout our Commonwealth.”

Industry Responds as Legislature Weighs Next Steps

As a result of this ruling, Pace-O-Matic was “disappointed with the decision” and believes the ruling “does not accurately reflect the facts presented.”

Their statement went on to say that small businesses and such “are now potentially left facing an impossible choice: cease operating these games and lose an important source of revenue, or endure a legislative solution that could bring excessive regulation and crippling taxation, which will force them to cease operating these games and lose an important source of revenue." 

We'll see what legislators come up with, if anything, concerning regulation for these games.