Pennsylvanians weigh court ruling that could lead to taxation on skill games

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The future of skill games in Pennsylvania is uncertain after the state’s Supreme Court ruled this week that the machines are slot machines under Pennsylvania law.

The ruling overturns years of lower-court decisions and could pave the way for regulation and taxation of the games, which can be found in bars, restaurants, gas stations, convenience stores, VFW halls and other businesses across the Commonwealth.

The court gave lawmakers 120 days to determine what happens next, including whether the games should be regulated and taxed and at what rate.

Supporters of the machines argue they involve player skill rather than pure chance and provide an important source of revenue for small businesses and community organizations.

“We are disappointed in the court’s ruling,” said Michael Barley, a spokesperson for Pace-O-Matic, the company behind many of the machines operating in Pennsylvania.

Barley said the company hopes lawmakers will create a path forward that allows the games to remain in operation.

“These games have meant such a great deal to local businesses, American Legions, VFWs and volunteer fire halls,” Barley said.

The Pennsylvania VFW is among the groups expressing concern about the ruling.

State Commander Bill Roland told Channel 11’s Cara Sapida he fears dozens of posts could shut down if significant taxes are imposed.

“We fear we could lose 30 VFWs because of this. Smaller community posts use that money to pay utility bills and donate to the community,” Roland said. “We are no billionaire group like casinos. With all the good we do for the community and our veterans, we don’t feel we should be taxed.”

Others argue the games should face the same scrutiny and taxation as casino slot machines.

State Sen. Camera Bartolotta told Channel 11 she supports regulating and taxing the industry.

“They literally are unregulated and untaxed and they want to stay that way,” Bartolotta said. “Children are playing these skill games. They are putting them in impoverished areas and they are preying on people who have little means.”

Some players also raised concerns about accessibility and the potential for gambling addiction.

“You can’t self-exclude,” said Nick Burns, who Channel 11 interviewed at a Shadyside laundromat with skill games. “You can’t ban yourself from a laundromat or a gas station or a Giant Eagle or a Primanti’s. I think it’s a net negative.”

The Supreme Court’s ruling does not immediately change how the games operate, but puts the issue back in the hands of lawmakers, who now have four months to determine the future of skill games in Pennsylvania.

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