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Skill games face seizure as deadline for Pa. legislature to act looms

by Stephen Caruso, Jaxon White, and Angela Couloumbis of Spotlight PA |

Pennsylvania skill game machine at a business near Harrisburg.
Sarah Anne Hughes / Spotlight PA

HARRISBURG — Leaders in the Pennsylvania legislature say they want to legalize and regulate skill games before a court-mandated deadline opens the terminals up to seizure by law enforcement.

Whether they’ll actually reach a consensus within the next month — ahead of critical legislative elections that will determine control of the General Assembly — is much murkier.

Deep cross-partisan divides loom over major aspects of potential regulation, like how many machines to allow statewide, the rate at which to tax them, and how to spend billions in projected revenue. Others remain skeptical of any gambling expansion, due to concerns about addiction and public safety.

An estimated 70,000 skill game machines have popped up in bars, taverns, restaurants, social clubs, and other establishments over the past decade, operating in a legal gray area. Device manufacturers and supporters had argued in court that these machines require a certain level of human skill to play, and thus don’t fall under the same legal definition as slot machines that rely purely on chance.

The state Supreme Court disagreed. In June, it ruled the devices are subject to the state’s gambling law and gave the legislature until Oct. 13 to act before the ruling goes into effect. Pennsylvania State Police said the agency will begin enforcement, including possible seizure and criminal charges, after that date.

Both chambers are scheduled to return to Harrisburg on Sept. 28 and have just six session days scheduled before the deadline.

Lawmakers broadly agree that they should do something, though they have made no public move to address the ruling since they entered summer recess two months ago.

State House Speaker Joanna McClinton (D., Philadelphia) told Spotlight PA last week the terminals’ revenue “absolutely” should be taxed.

“We remain open, willing to negotiate, get the compromise done, regulate them, tax them,” McClinton said, although she wouldn’t go into detail about what a compromise would look like on key issues, like local control over where machines can be placed. “We want to do it.”

State Senate Majority Leader Joe Pittman (R., Indiana) told Spotlight PA this week that he hasn’t been involved in any conversations this summer to find consensus, but there are “plenty of legislative days to address the issue.”

"The Supreme Court ruling gave us great clarity. I do believe the legislature should act before the Oct. 14 deadline,” Pittman said. “I believe we should have acted in June.”

Lawmakers received a stark reminder last week that the deadline is fast approaching.

Pennsylvania State Police, which operates a gaming control unit that enforces the commonwealth’s gambling laws, issued guidance to establishments that house skill games that left little room for interpretation.

As of Oct. 14, any skill game devices found outside of casinos and truck stops licensed by the state Gaming Control Board — the only places that can legally have slot machines — will be subject to confiscation, State Police officials said.

It is not good enough to unplug them or power them down, the law enforcement agency said.

“The [State Police] and other law enforcement agencies may take enforcement action against businesses which continue to possess, operate and/or maintain such machines after that date,” the agency said in a news release. “Enforcement actions may include seizing and forfeiting the machines, associated equipment and money associated with the operation of the machines, and/or filing criminal charges where deemed appropriate.”

That warning “puts the reality into full view” that skill games will soon be illegal, Pittman said.

Lawmakers have been debating whether to ban or regulate skill games for roughly a decade. Since taking office in 2023, Gov. Josh Shapiro has called for taxing and regulating them in three of his four budget proposals.

Amid difficult budget negotiations in 2024, Pittman suggested that revenue from the games could be directed to transportation, including struggling public transit systems — a key sticking point for Democrats.

“If we don't get our arms around this in the next couple of weeks,” he said of skill games that June, “I don't know how we ever really functionally revisit the topic.”

As of this week, Harrisburg still hasn’t.

Lawmakers did not seriously consider skill game regulation during 2025 budget talks. And earlier this year, leaders said they wanted to wait for the state Supreme Court to rule before taking any action.

Pittman said Senate Republicans “were prepared in general terms to go in the direction that the governor had proposed in his budget” — to direct skill games revenue to the General Fund — after the June ruling.

“Unfortunately, the governor was unable to convince House and Senate Democrats of the same, and they again insisted on a blank check for transit, which ultimately is where those conversations fell down,” he said.

House Majority Leader Matt Bradford (D., Montgomery) did not address Pittman’s claim, but said in a statement that the legislature should have acted on skill games years ago.

“I believe the contours of a final agreement have been known to all parties for months,” Bradford said, without providing details. “Nonetheless, as with so many things, we still await Senate action.”

Democrats, including Bradford, have pinned responsibility for the inaction on Senate Republicans, who’ve faced internal divides over how to handle the issue. The skill games lobby even poured millions into three primary challenges against incumbent chamber Republicans.

That effort to oust the lawmakers came after the manufacturer and distributor of most of Pennsylvania’s skill games, Pace-O-Matic, accused Senate Republicans leaders of threatening retaliation if lobbyists did not drop the company as a client. Several major lobby shops subsequently did so over the course of a few days.

Democrats harbor their own divisions on the issue. In the state House, for instance, 23 Democrats have signed onto an industry-backed bill that would allow the commonwealth to collect a $500-a-month fee on each device, and allow for as many as 50,000 machines.

“The reality is that both the House and the Senate are doing the hurry-up and wait game,” state Rep. Danilo Burgos (D., Philadelphia), the bill’s prime sponsor, told Spotlight PA of the legislative impasse, blaming the power of the casino lobby. “And it's not fair to small business owners across Pennsylvania that … we haven't come together and pass a bill that will benefit all Pennsylvanians.”

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In a statement, Pace-O-Matic said inaction by lawmakers threatens the bottom lines of those who host skill games, including American Legions, VFWs, volunteer fire companies, and fraternal organizations.

“Some have warned that without skill games, they will be forced to cut staff, reduce community support or even close altogether,” the company’s statement read. “Because there is bipartisan, bicameral support, we are confident lawmakers will work toward a solution that protects these organizations, regulates the industry responsibly and keeps skill games operating in Pennsylvania.”

A spokesperson for a casino-backed lobby group that opposes skill games, Pennsylvanians Against Gaming Expansion, declined to comment.

Leadership can add session days at will and have tools to advance legislation quickly if needed. But with control of the General Assembly on the line this November, lawmakers’ time and attention will be divided between the official duties in the Capitol and the demands of the campaign trail.

There is another option — punting the decision until next year.

“With a very limited number of scheduled voting session days between now and [the deadline] and no consensus yet, more time is likely needed to get it done,” state Rep. Brad Roae (R., Crawford) wrote in a co-sponsorship memo this week seeking support for a bill that would give legislators another six months to cut a deal.

Correction: This story originally misstated the number of months by which Roae is seeking to extend lawmakers’ ability to make a skill games deal.

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