Judge Reverses Ban on Skill Games in Philadelphia

  • UM News
  • Posted 1 year ago
00:00 / 00:00

The contentious devices, which closely resemble slot machines but claim to incorporate a skill element affecting outcomes, have faced strong opposition from Pennsylvania casino proprietors and the broader industry. These so-called “skill games” operate without regulation and are untaxed, lacking consumer safeguards like responsible gaming measures.

Despite this, distributors and operators of skill games, alongside Georgia’s Pace-O-Matic (POM), creator of the well-known “Pennsylvania Skill” game series, have successfully challenged several law enforcement confiscations of the devices in court.

### Ban Implemented in March

The recent ruling relates to a [ban on skill games](https://ggbnews.com/article/skill-games-secure-another-pa-court-victory/) enacted by the Philadelphia city council in March, as reported by the [Philadelphia Inquirer](https://www.inquirer.com/news/philadelphia/commonwealth-court-philly-skill-games-ban-20241206.html) and signed by Mayor Cherelle Parker. G&B Amusements, a distributor, and local gas station owner Harry Sandhu, who provides these games, contested the ban. A common pleas court upheld the prohibition and refused to pause the ordinance’s enforcement.

Judge Patricia A. McCullough of the Commonwealth Court ruled in favor of the skill-game operators, referencing a prior ruling that asserted games situated outside traditional casinos aren’t governed by state gaming laws. “Currently, POM games located outside regulated establishments are neither illegal nor regulated,” McCullough stated.

The state has [appealed the earlier decision](https://ggbnews.com/article/pa-high-court-to-rule-on-skill-games/), and the Pennsylvania Supreme Court is set to hear the case. If Philadelphia challenges McCullough’s ruling, it will also be reviewed by this court.

### POM’s Response to Ruling

Pace-O-Matic welcomed the court’s decision. In a statement, POM spokesperson Mike Barley expressed satisfaction over the ruling, explaining, “POM is pleased, though not surprised, that the Commonwealth Court has deemed the Philadelphia city council’s ban illegal. This decision benefits small Philadelphia businesses relying on additional income from patrons playing Pennsylvania Skill games at their sites. The voided ban only served to harm businesses already facing economic challenges.”

The ruling also impacts a similar prohibition enacted in the Philadelphia suburb of Bensalem, home to Parx, Pennsylvania’s most lucrative casino. According to Play Pennsylvania, that ban is currently suspended, pending appeal outcomes in related cases.

The proliferation of unregulated skill games has prompted a longstanding fight from industry leaders. The American Gaming Association and the Association of Gaming Equipment Manufacturers have joined forces to combat these machines.

In July, Pennsylvania casino operators [initiated legal action against the state](https://igamingbusiness.com/casino/pennsylvania-casinos-skill-games/), seeking to overturn their taxation rate of over 50% on slot revenues, labeling it unconstitutional due to the untaxed status of skill games.

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