D-Day for skill games across Pennsylvania
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Illustration: Maura Losch/Axios
The era of unregulated skill games in Pennsylvania is over.
Why it matters: The effective ban is a double whammy, depriving both small businesses and the state of significant revenues from the money-making slot machines.
State of play: An estimated 70,000 skill games across Pennsylvania go offline as of today.
- The state's divided government failed to come to terms on a new framework for the casino-style machines to keep them operating.
Context: Over the summer, the state Supreme Court ended a yearslong debate by ruling that skill games were gambling devices and were subjected to state gambling laws.
- The justices gave lawmakers a runway of several months to legalize and regulate the devices — or allow a ban to go into effect.
Worth noting: Skill games are still legal in licensed casinos and truck stops.
Between the lines: The inaction of Pennsylvania lawmakers is a strong signal that issues around skill games were too much of a gamble ahead of November's election, which includes all members of the state House and the governor's race.
👍 Winners: Communities and lawmakers who loathe the devices, labeling them as nuisances that attract crime.
👎 Losers: Small businesses — think gas stations, social clubs, bars and corner stores — who can reap significant revenues from the slot machines in their stores.
- Plus: Manufacturers of the gaming terminals, like Georgia-based Pace-O-Matic.
How it works: State police and local municipalities can begin enforcing the ban today, which includes:
- Seizing and forfeiting machines, as well as any revenues associated with their operation
- Filing criminal charges, which could carry fines of $1,500+ and jail time.
- Potential suspension of liquor license
Yes, but: Exactly how the ban will be enforced and whether residents can call in to report violations is unclear.
📍 Zoom in: Some Philly neighborhoods are a hotbed for the devices, like Kensington, Logan and Feltonville, while more well-heeled areas of the city — including Chestnut Hill — have largely avoided them.
What they're saying: Chris Caracino, a spokesperson for the state police, tells Axios that the agency has been keeping businesses updated about the coming deadline and "will be prepared to act" in the absence of skill game legislation.
- Mayor Cherelle Parker's office declined Axios' request for comment.
The other side: A spokesperson for Pace-O-Matic, which manufactures many of the terminals found in the city, tells Axios that the company remains hopeful that lawmakers will pass legislation to regulate and tax skill games.
What we're watching: Whether state lawmakers revisit skill game regulations in the future to legalize the devices.