The regulation of skill games has been rekindled when a Pennsylvania court overturned a Philadelphia rule that prohibited them in the majority of establishments. The Commonwealth Court’s ruling on December 6 is a blow to local government and the gambling industry, but it also represents a major legal win for skill-game operators.
Slot machines are frequently compared to skill games, which demand some player involvement to win. Casino operators and other critics contend that these machines take advantage of a legal loophole to evade monitoring and taxes. Nonetheless, proponents assert that they give small enterprises vital revenue.
Court Decision Challenges Local Regulations
The Philadelphia City Council passed the ordinance in March, aiming to curb the widespread use of skill games in the city. Mayor Cherelle Parker signed it into law, but the regulation faced legal challenges from G&B Amusements, a distributor, and Harry Sandhu, a gas station owner who operates skill games.
Initially upheld by a lower court, the ban was overturned by Commonwealth Court Judge Patricia A. McCullough. She ruled that Pennsylvania’s gaming laws do not cover skill games located outside regulated casinos. “As the law stands today, POM games that are located outside of regulated facilities are neither illegal nor regulated,” McCullough wrote, referencing “Pennsylvania Skill,” a game series by Pace-O-Matic (POM).
This ruling follows years of legal disputes, with courts repeatedly siding with skill-game operators and overturning law enforcement seizures.
Pace-O-Matic welcomed the decision. POM spokesman Mike Barley stated, “Pace-O-Matic is pleased, and not surprised, that Commonwealth Court agrees the ban passed by Philadelphia city council is unlawful.” He emphasized the financial benefits these games provide to small businesses.
The broader gaming industry continues to challenge the presence of skill games. Casino operators argue these machines are untaxed, while slot machine revenues face over 50% taxation. Groups like the American Gaming Association have lobbied for stricter regulations to ensure fairness in the industry.
Philadelphia officials have not yet announced if they will appeal to the Pennsylvania Supreme Court, which is reviewing a related case. The ruling could also affect a similar ordinance in Bensalem, home to Parx Casino, the state’s highest-earning casino.
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