Pennsylvania Discusses Skill Game Legislation

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Last updated: February 3, 2025

In recent years, Pennsylvania has seen an increase in skill-based games similar to slots, typically found in bars and truck stops. While lawmakers like State Senator Gene Yaw are considering legislation, many organizations in the gambling industry oppose it. Check out this article to learn more about the current situation and potential legislation.

Background on Pennsylvania’s Gambling Laws

Pennsylvania’s long history of gambling legislation includes many laws and discussions on legislation. Gambling was illegal until 1971 when the PA Lottery Act legalized lottery games. After that, there were attempts to legalize casinos, but land-based ones would take until 2004 to become legal. Here’s a timeline with some of the most important events:

Most gambling options are available in Pennsylvania through land-based and online casinos. The state also offers satellite casinos, which provide slot games at truck stops and airports. New casinos continue to be added, with one of the more recent additions being Parx Casino Shippensburg in 2023.

Pace-O-Matic and Skill Games

Many businesses, like bars, recently began offering Pace-O-Matic (PMO) games. The company was founded in 2000 by Michael Pace, a renowned inventor in the gambling industry. His biggest contributions include the first countertop game in 1980, the Turbo 340 game development platform, and the world’s first electronic pull tab in 1990.

While PMO’s games may resemble slots, they have an element of skill. For example, in Lady Periwinkle, you spin to reveal several symbols. You must place a wild symbol in the right spot to win bigger prizes. Other games like Dragon’s Ascent are more interactive, where you spend credits shooting dragons. Here’s a detailed explanation of a PMO title’s gameplay:

Once you’re done playing, you take the ticket to a terminal and redeem your prize. The accessible and interactive gameplay of these titles has garnered them great popularity, with Fortune Business Insights predicting skill games will be valued at $85.34 billion by 2030. As such, it is becoming increasingly more important to regulate these games.

New Laws Proposed

Skill-based gaming legislation has been a point of contention for years, with State Senator Gene Yaw proposing skill-based gaming bills since 2023. While none of the previous bills were successful, he continues making propositions, such as a minimum age and a collection network to prevent issues when collecting taxes. There is even a proposed tax rate of 16%.

Many businesses like bars, clubs, and charity organizations support regulating skill games. POM’s machines bring them additional revenue, and legalization will create additional job opportunities. Pace-O-Matic also favors regulation and taxation, believing that they are not direct competitors for online casinos.

Opposition to Legislation

While many businesses support regulation, there is strong opposition. Some opponents include the American Gaming Association, the Association of Gaming Equipment Manufacturers, and state casino operators. Their main point is that there is no guarantee of fairness. None of the games have proper anti-money laundering or responsible gambling technology.

Another point of contention is revenue. Since skill games are untaxed, they don’t provide revenue to the state and present unfair competition. According to a survey conducted by the AGA, 65% of respondents don’t believe there’s a difference between POM titles and slots.

While there have been attempts to sue the state and ban skill games, they were unsuccessful. During the National Council of Legislators from Gaming States in July 2024, a panel of experts agreed skill games were illegal. However, they are too widespread, and banning them could affect many businesses. Additionally, the courts have frequently ruled in favor of POM, which the company claims proves its legality.

Conclusion

The debate surrounding skill games is ongoing, with the bills seemingly unsuccessful. Proponents and opponents continue to argue on the legality, but there has been no progress for years. We will keep you updated on any future developments in the situation.