‘Fallout’s Going To Be Really Scary:’ Small Businesses, Law Enforcement Brace For Skill Game Crackdown

Law enforcement officials are preparing to crack down on “skill games” after a state Supreme Court ruling that found the devices to be illegal slot machines, according to the Pennsylvania State Police.

Beginning Oct. 14, troopers and other law enforcement personnel “may” initiate enforcement actions, criminal prosecutions, and seizures of the machines from unauthorized locations throughout the state.

Bucks County District Attorney’s Office spokesperson Manuel Gamiz said the office will be consulting with the state police on enforcement, but he noted troopers are leading the efforts. He added that county prosecutors will handled cases forwarded to them for prosecution.

State police told reporters last week that simply unplugging or turning off an operable machine will not be in compliance with the law.

As part of the state’s Gaming Act, slot machines are classified as gambling devices under the Crimes Code.

Possessing, operating, or maintaining them without a license issued by the Pennsylvania Gaming Control Board is a criminal offense, state police said.

Only licensed casinos and approved truck stops with board-approved equipment may legally operate the devices, according to troopers.

State police last week issued guidance and recommendations to businesses operating the machines ahead of the October deadline.

The impending enforcement stems from a June decision by the Pennsylvania Supreme Court involving two separate cases. The court ruled that the devices meet the legal definition of slot machines, but placed a 120-day stay on its decision, which expired Oct. 13, to allow Democratic Gov. Josh Shapiro and lawmakers time to find a solution through legislation.

Legislators and the governor have tried for years to reach agreement on regulating the machines without success.

Earlier this year in his budget proposal, Shapiro proposed a 52 percent tax rate on skill games, which is the same as the state’s tax rate for casino slot machines. Some Republican lawmakers have suggested lower rates ranging from 16 percent to 36 percent, while some legislators on both sides have considered a flat monthly fee per machine.

An analysis by the state’s Independent Fiscal Office evaluated Shapiro’s plan, which included the 52 percent tax rate alongside a statewide cap of 40,000 devices.

The proposal could generate up to $1.19 billion for the state’s general fund by the 2030-2031 fiscal year.

Using data from other states, the office estimated that each machine generates $47,000 in annual gross revenue.

The Pennsylvania Attorney General’s Office estimated that more than 70,000 skill game devices operate across the state.

The devices are often found in bars, restaurants, social clubs, gas stations, mini-marts, grocery stores, laundromats, and pizza shops.

Proponents contend that the revenue is key for local businesses and organizations.

Willie Shay, a manager for Shay’s Vending, told Central Pennsylvania public media outlet WITF that the devices rescued his family-owned enterprise and many of its customers.

“It’s savings a lot of nonprofits and bars and clubs,” Shay said. “If this ban comes through and nothing’s done, the fallout’s going to be really scary.”

The Pennsylvania District Attorneys Association included skill games on a list of “threats to our communities” sent to the governor earlier this year.