Posted on: June 17, 2026, 02:21h.
Last updated on: June 16, 2026, 12:22h.
Penn Entertainment is positioned well to benefit from skill games going away
The PA Supreme Court has ruled that skill games are slot machines
The skill games can remain operational for three months
Penn Entertainment is best situated to cash in should skill games disappear from small businesses in Pennsylvania.
Pennsylvania skill gaming machines branded Pennsylvania Skill are pictured inside a store that buys and sells gold and other precious metals in Wilkes-Barre on Wednesday, Feb. 5, 2025. With the future of skill games unknown, Penn Entertainment could benefit if the machines vanish. (Image: Getty)
On Monday, the Pennsylvania Supreme Court ruled that skill games meet the legislature’s definition of slot machines. Therefore, the estimated 70,000 machines operating across the commonwealth are illegal under the current state Crimes Code and Gaming Act.
The landmark ruling was a major victory for Pennsylvania’s legal gaming industry, the third-richest in the nation behind Nevada and New Jersey. For years, the state’s brick-and-mortar casinos have argued that skill games are illegal gambling and poach play from their regulated and heavily taxed slots.
In the wake of the PA Supreme Court decision, gaming analysts are weighing in on which casino companies are most likely to benefit from the possible withdrawal of skill games.
Penn Seen as Big Winner
Jorden Bender and Isabelle Slavin, analysts for Citizens’ Gaming, Online Gaming & Gaming Technology coverage, believe Pennsylvania-based Penn Entertainment is best situated to benefit from the absence of skill games.
“Grey market operators and commercial casinos have spent years in courts deciding whether these untaxed machines, located in bars, restaurants, convenience stores, and truck stops, should be removed or regulated. While the size of the unregulated market remains difficult to quantify, estimates over the years have ranged from 70k units to over 100k units, and we believe these machines compete directly with traditional brick-and-mortar casinos,” the Citizens note read.
In our view, Penn stands to benefit the most given its market exposure, and to a lesser extent, Boyd Gaming and Churchill Downs. We also see the potential for a modest tailwind to online gaming operators, including DraftKings, Flutter (FanDuel), Rush Street Interactive, and MGM Resorts (BetMGM), as some slot-oriented customers migrate to digital channels,” Bender and Slavin wrote.
Penn Entertainment runs four casinos in Pennsylvania, with Hollywood Casino at Penn National Race Course in Grantville, Hollywood Casino York, Hollywood Casino at The Meadows in Washington, and Hollywood Casino Morgantown.
Boyd operates Valley Forge Casino Resort, and Churchill Downs Inc. runs Presque Isle Downs Casino in Erie. Penn, Boyd, and Churchill are additionally heavily invested in Pennsylvania’s iGaming market
Skill Game Benefits Unknown
The Pennsylvania Supreme Court issued a 120-day stay of its skill game ruling, providing the General Assembly with time to possibly pass a law to authorize and regulate skill games. Should that happen, skill game players could see tighter odds due to state fees and taxes.
The Citizens note assumes that a considerable number of current skill game players will take their bets to casinos and/or online casinos should the Pennsylvania Skill cabinets disappear.
Casino.org, however, can report that many skill game players have little interest in visiting casinos. They enjoy low-stakes games that many casinos do not provide and wish to remain in their local watering hole, fraternal organization, or social club, where their friends are, and the food and drinks are cheap.