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Pennsylvania Supreme Court calls skill games illegal
On June 15, Pennsylvania’s Supreme Court ruled that skill game machines are classified as slot machines, which are subject to state gambling laws, effectively overturning 2 lower court decisions that permitted the machines to operate in the state.
Previously, the Commonwealth of Pennsylvania Court decided that skill games weren’t subject to the state Gaming Act and ruled that their operation wasn’t considered illegal gambling as there was a skill element. However, the Supreme Court denied both rulings in a 5-2 decision and stated that skill games are illegal according to Pennsylvania law.
Pennsylvania Attorney General James Sunday stated:
“The Supreme Court recognized what our office has argued from the beginning – these machines operate as gambling devices and cannot legally exist without the same oversight, regulation, and accountability as other forms of legalized gaming in the Commonwealth.”
Currently, there are over 70,000 skill game machines in the state, making Pennsylvania the biggest skill games market in the United States. Although the games are mostly slot machines, they have a memory element called “follow me” with a skill component, which has previously allowed operators to argue that they don’t fall under state gambling regulations.
Justice David Wecht shared:
“Skill game devices have been held to fall into a legal gray area outside of the reach of both the Gaming Act and the Crimes Code. We are further mindful of the potential disturbance that our correction of the prevailing case law may cause to business owners and other good-faith participants in the industry.”
To address the industry’s concerns, the court has given lawmakers a 120-day window to regulate skill game machines if they choose to do so, as enforcement action against operators will be prohibited during this period, allowing them to adjust.
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