The Pennsylvania Supreme Court overturned two lower court decisions and determined so-called “skill games” are unlawful under existing state laws.
Key Takeaways
- The Pennsylvania Supreme Court overturned two lower court cases concerning “skill” based slot machines on Monday.
- Game operators were granted a 120-day grace period to abide by the new ruling.
- The leading manufacturer, Pace-O-Matic, vows to abide by the law, while continuing to work with state legislators.
On Monday, the Pennsylvania Supreme Court ruled on two separate appeals relating to the legality of skill games. In one case, the Commonwealth of Pennsylvania Court ruled that skill games were not subject to the state’s Gaming Act, since they were unlicensed.
In another case, the same lower court ruled that the operation of the games in question did not constitute illegal gambling under the Crimes Code because of their skill element. In a 5-2 decision, the Pennsylvania Supreme Court disagreed with both lower court cases, ruling that the games were illegal under state law.
Pennsylvania Attorney General James Sunday issued a statement after the decision. “Today’s ruling is a significant victory for consumers, taxpayers and the rule of law in Pennsylvania,” Sunday said.
“The Supreme Court recognized what our office has argued from the beginning – these machines operate as gambling devices and cannot legally exist without the same oversight, regulation and accountability as other forms of legalized gaming in the Commonwealth. Pennsylvanians deserve protections that ensure games are fair, transparent and operated within the bounds of the law.”
The games in question are, for the most part, slot machines. They, however, include a memory component called “follow me” that has an element of skill. By including skill practicality, operators claim they fall outside state gambling rules and regulation. The Supreme Court ruled that was not enough to make a slot machine legal.
Operators under pressure
Even without Monday’s court ruling, skill game operators were under pressure in the Keystone State. Earlier this month, House Bill 2557 was introduced, seeking to impose tighter restrictions on the use and operation of skill games.
Game operators were granted a grace period to abide by the ruling.
The court decision stated, “We recognize, as we have in the past, that many throughout Pennsylvania have placed reasonable reliance upon the Commonwealth Court’s decisions on the lawfulness of the subject devices. We are further mindful of the potential disturbance that our correction of the prevailing case law may cause to business owners and other good-faith participants in the industry. We thus stay our order for a period of 120 days. During this 120-day period of safe harbor, no law enforcement agency is to take adverse action against owners or operators of “skill game” devices in reliance upon this opinion.”
As estimated, 70,000 machines currently operate throughout the state, mostly manufactured by Pace-O-Matic. The Georgia-based company issued a statement following the court decision. “We are disappointed with the decision by the Pennsylvania Supreme Court and strongly believe it does not accurately reflect the facts presented – notably, the same facts that led to a string of lower court rulings affirming the legality of our skill games, including a unanimous Commonwealth Court ruling.”
The company further stated that it plans to work with state legislators, while it complies with the court’s decision. “Our number one priority continues to be supporting our small business and nonprofit partners across the commonwealth. Pace-O-Matic will always abide by the rule of law."
