Pennsylvania Skill Games Removed Across State After Deadline Passes

_{Skill games like these were removed from Pennsylvania bars, clubs, and stores after the Oct. 14 deadline. (Photo: courtesy of PA Skill)}

A deadline from the Pennsylvania Supreme Court came on Wednesday, forcing businesses across the state to remove skill games from their facilities or face criminal charges.

The skill game ban took effect following a June ruling by Pennsylvania's highest court that found the machines were legally equivalent to slot machines. The ruling gave the industry a 120-day window to comply, which closed on Oct. 14. Pennsylvania State Police became authorized to begin seizing machines and charging operators who continue to offer the games.

Lawmakers Fail to Reach Deal to Regulate Skill Games

There had been hope that a legislative solution could be found before Wednesday’s deadline. While Pennsylvania Gov. Josh Shapiro proposed taxing the machines at 52%, the same rate applied to casino slot machines, some Republican legislators proposed a 20% tax rate. Neither side reached an agreement before the deadline passed.

According to Local 21 News, State Rep. Russ Diamond (R-Lebanon) of the House Gaming Oversight Committee said there wasn’t even much discussion of the issue over the past few months.

“I heard nothing from anyone,” Diamond said, noting that he expected negotiations to take place over the summer. “It truly is the worst part of Harrisburg, the political bickering and posturing. I’m so sick of it.”

While both Democrats and Republicans in the state say they’re willing to work to build a regulatory framework for skill games, Diamond says it will be a while before that comes to fruition. “I think there is a possibility,” Diamond said. “But if you look at the legislative timeline, it’s kind of going to be at least six months out.”

In the days since the ban went into effect, both Gov. Shapiro and Republican state treasurer Stacy Garrity – who is running against Shapiro in this November’s gubernatorial race – have commented on the issue.

Garrity joined skill game operators at a rally in the Pittsburgh suburb of Green Tree Borough, telling the crowd that Shapiro was to blame for failing to find a legislative solution. “A leader should solve issues and bring stakeholders together,” Garrity said.

On the same day, Shapiro was in Canonsburg, where he blamed Senate Republicans for holding up a bill that would regulate skill games.

“Unfortunately, the Republicans in the Senate have refused to bring the bill up for a vote,” Shapiro said. “As of now, these games are illegal, and the Pennsylvania State Police is working with the companies and working with the venues to now enforce the court’s order.”

Businesses, Charities Remove Games Ahead of Deadline

That leaves the businesses and organizations that house roughly 70,000 skill machines in the state with little long-term certainty about whether they’ll be able to bring the games back. Larger businesses dedicated to the games closed their doors before the deadline, moving their machines into storage in other states to comply with state law. Customers at one such business, Gold Mine in Hermitage, told reporters they were disappointed to see the skill games facilities closing down.

“Big-time casinos in [Pennsylvania and Ohio], those are legal, so why can’t these mom-and-pop shops be legal as well?” Sharon resident Stephen McCusey told WFMJ.

Others described the businesses as more like local social gathering spots than gambling halls. In Hampden Township, SkillGame Kingdom owner Jaspreet Kaur threw a farewell party for employees and regulars.

“This is more like an event place where the locals get together, chit-chat, socialize, you know, have a good time,” Kaur told PennLive.com. “And it’s not only the games here…we have a dance contest last night.”

It wasn’t just dedicated facilities that hosted machines either. Workers at American Legion Post 951 in Upper Chichester had to remove their four machines, which they told CBS News generated revenue to help support local charities.

“It’s just fun and exciting,” Marine Corps veteran Ron Starr said of the machines. “When you blow $200, it is not. But when you win $500, it is.”

The legal change has also led to job cuts across the skill game industry. Skill games vendor Republic Amusements filed notice of its intent to lay off 81 employees, which the company said served about 1,000 locations in Pennsylvania.

Even if legislators decide they want to create a regulatory framework under which the skill games can come back, it’s unlikely that anything will happen before November’s midterm elections and the swearing-in of new legislators in January. And even then, there’s the issue of getting everyone on the same page.

“Addressing this issue requires all parties coming together to reach a responsible and reasonable solution that can pass both chambers and be signed by the Governor,” Senate Republicans said in a statement.

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