Pennsylvania Supreme Court clears way for gaming machine ban
An estimated 70,000 unlicensed gaming machines across Pennsylvania face removal from Wednesday after the state’s Supreme Court rejected a last-minute attempt to delay enforcement of its ruling that so-called skill games are illegal slot machines.
The court refused an application on October 9 from lawmakers and industry representatives seeking another 120 days to negotiate legislation regulating the machines.
The decision leaves an October 14 enforcement deadline in place, after which police can seize gaming terminals operating outside licensed gambling establishments.
Skill games have become widespread in Pennsylvania’s convenience stores, petrol stations, bars and social clubs, with manufacturers arguing that their machines involve an element of player skill that distinguishes them from conventional slot machines.
However, the Pennsylvania Supreme Court ruled in June that the devices fall within the definition of slot machines under the state’s Gaming Act.
The court suspended enforcement for 120 days to allow businesses to remove the machines and legislators to consider establishing a licensing framework.
With no agreement reached, the latest ruling effectively ends that temporary protection.
Pennsylvania Attorney General Dave Sunday has warned businesses that simply switching off their machines will not be sufficient to avoid enforcement action.
“We do not want to see searches and seizures at storefronts or bar, social club and restaurant establishments,” Sunday said.
“We would much rather business owners and social clubs comply with the law and take steps to get these illegal devices out of their places of business.”
Authorities have warned that businesses continuing to operate or retain the machines could face confiscation of equipment and associated funds, with criminal charges possible in appropriate cases.
The decision represents a significant victory for Pennsylvania’s regulated casino industry, which has long argued that unlicensed skill games compete with authorised slot machines without facing equivalent taxation and regulatory requirements.
However, businesses hosting the machines warn that their removal will eliminate an important source of revenue.
Lawmakers have considered competing proposals to legalise and tax the devices, including a monthly machine fee and a tax on gaming revenue, but have yet to reach an agreement.
Unless legislation intervenes, enforcement can begin on October 14.
