Pennsylvania Court Affirms Legality of Skill Games, Opening Doors for Taxation

In a groundbreaking decision last week, businesses offering skill games in Pennsylvania emerged victorious as the Commonwealth Court sided with a lower court’s ruling. The court, in a unanimous 7-0 decision, affirmed that winnings from skill games are legal and distinct from slot machines. This verdict not only shields skill games from being deemed illegal gambling devices but also prevents their seizure by law enforcement. The court emphasized that these games involve hand and eye coordination, differing from slots that rely purely on chance.

This ruling stands as a major win for a variety of businesses in Pennsylvania, including gas stations, bars, and restaurants currently providing skill games. These games not only contribute to increased revenues for establishments across the state but also introduce a novel form of entertainment. Non-profit organizations can also continue offering skill games, countering claims that these machines resemble slots.

Mike Barley, Chief of Public Relations for Pace-O-Matic, a prominent skill game manufacturer, expressed satisfaction with the court’s decision. He anticipates that this legal validation could lead to the taxation and regulation of skill game products. Barley stated, “We’re in a unique position where we have a legal product — the court has said so — and we’re saying, ‘Please come tax us. Please come regulate us.’ It’s not something you hear very often in Harrisburg, but we’re hoping to get some action.”

Despite the optimism surrounding the court’s decision, not everyone supports the expansion of skill games. Pete Shelly, spokesperson for the group Pennsylvanians Against Gaming Expansion, formed by casino operators, warned about potential risks. He cautioned that without legislative action, the state might be flooded with tens of thousands of skill games.

The recent court decision, while a cause for celebration for businesses and manufacturers, does not guarantee the future of skill games. The state attorney general may choose to appeal the decision to the Supreme Court in Pennsylvania, introducing an element of uncertainty to the fate of skill games in the state.