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State of Play’s TL;DR
- Pennsylvania police are warning businesses with skill games.
- Machines could begin being seized after Oct. 13 if lawmakers do not pass a regulatory bill.
Pennsylvania businesses that host skill games are being warned they could lose the machines – and the money they generated – if lawmakers do not pass a regulatory fix by Oct. 13.
The deadline follows a Pennsylvania Supreme Court ruling that treated the devices as slot-machine equivalents absent new gaming reforms.
Pennsylvania State Police said Thursday that, if no bill is enacted by the court’s deadline, skill game terminals could be subject to seizure starting Oct. 14. In some cases, police said, criminal charges may also be considered.
State police warn businesses not to rely on unplugging machines
The warning affects an estimated 70,000 skill games located in places such as corner stores, taverns, gas stations, restaurants, laundromats, and fraternal organizations across Pennsylvania. Unlike casino slot machines, the devices are not taxed and licensed through the same state framework.
State police said businesses should speak with distributors and vendors about removing the machines. Simply turning them off or unplugging them will not count as compliance.
In a statement, police said:
“Slot machines are considered gambling devices under the Crimes Code, and a person commits a criminal offense by owning, operating, or maintaining slot machines without a license issued by the Pennsylvania Gaming Control Board.”
Competing bills
Lawmakers still have several paths in front of them, but no single approach has won out.
Gov. Josh Shapiro has called for a 52% tax rate, with revenue going to the state’s general fund. A bipartisan proposal backed by Pace-O-Matic and Miele Manufacturing would instead impose a $500-per-month fee per machine and is projected to raise $300 million in its first year.
State Rep. Russ Diamond has proposed a 20% tax and a limit of five machines per establishment, while another bill from Sen. Gene Yaw would tax them at 16%.
The stakes are significant: Pennsylvania’s Independent Fiscal Office estimates each machine generates about $47,000 a year on average.
What to watch before Oct. 13
The biggest unanswered question is whether the Legislature can pass a bill before the deadline. If not, businesses that continue operating skill games could face forfeiture of both machines and earnings beginning Oct. 14.
The issue also remains politically charged at the local level. Philadelphia City Council banned the machines in 2023, though that law could not be enforced while the state Supreme Court reviewed the matter.
Mayor Cherelle Parker has called the devices “predatory” and said they should not be accessible to children or vulnerable communities.
Based on reporting by Michael Tanenbaum for Philly Voice.
