Pennsylvania Supreme Court to Rule on Legality of Skill Games

21.06.2024

The Pennsylvania Supreme Court is set to deliver a decision regarding the legality of electronic gaming terminals, commonly found in bars and convenience stores across the state.

These “skill games” have sparked considerable debate about whether they constitute illegal gambling machines.

The Legal Debate

The state’s attorney general’s office appealed a lower court ruling that classified these skill games as dependent on a player’s ability rather than chance, differentiating them from traditional slot machines.

The appeal argues that these games operate illegally without a gambling license and should be subject to seizure by law enforcement.

Conversely, manufacturers, distributors, and operators of the skill games assert that they are legal under state law and do not meet the definition of regulated gambling.

Potential Impact of the Ruling

Jeffrey Rosenthal, an attorney representing Parx Casino in Philadelphia, highlighted that the forthcoming ruling could provide long-needed clarity on the legal status of these machines. The decision is expected to set a precedent on how electronic gaming terminals should be regulated in Pennsylvania.

Both the Pennsylvania Lottery and the state’s casino industry have blamed skill games for significant revenue losses. Unlike traditional slot machines, which generate substantial tax revenue (approximately 54% of slot revenues go to the state), skill games operate without the same tax obligations.

With at least 67,000 such terminals in Pennsylvania — more than any other state, according to the American Gaming Association — the financial implications are considerable.