It looks like the legal status of unregulated skill games in Pennsylvania is finally heading toward a major turning point as the Pennsylvania Supreme Court is getting ready to decide whether the machines should be treated as illegal gambling.
At the same time, lawmakers in Harrisburg are busy figuring out potential regulations that could provide the slot-like machines a formal legal framework to work with, despite the lingering feeling of uncertainty regarding their future.
“Heightened Risk to Problem Gamblers and Vulnerable Populations”
As always, the debate focuses on the nature of these devices, which allow players to interact with winning combinations and, in some versions, complete simple tasks that can influence outcomes.
Those who lobby for their existence argue that this element of player input makes them different from traditional games of chance regulated under the Pennsylvania Gaming Act.
On the other hand, critics claim the machines operate similarly to slot machines, but lack the necessary protections and oversight that licensed casinos are legally subject to.
Plus, casino operators and the Pennsylvania Lottery argue that skill games cut revenue, with casino slot earnings slightly dropping in recent years, and lottery sales falling more sharply.
Representative Ben Waxman (D-Philadelphia) is set to introduce the Skill Game Consumer Protection Act, which would establish clear rules for any future legalization of the machines. Waxman argues that regulation is a must in order to keep vulnerable players well protected.
“Skill games often operate in a manner similar to slot machines, but without the safeguards required in regulated casinos, and they present a heightened risk to problem gamblers and vulnerable populations due to their accessibility and speed of play,” he added.
“They Should Be Designed to Minimize Harm”
Under his proposal, any legalized skill games would be connected to a centralized monitoring system overseen by the Pennsylvania Gaming Control Board. The plan would also introduce responsible gaming tools such as play-speed limits, cooling-off periods, loss limits, and a state-run self-exclusion program.
The self-exclusion system would prevent registered individuals from using credit or debit cards to play, and require identity checks at retail locations when redeeming winnings.
Waxman also wants part of any future tax revenue from skill games directed toward problem gambling treatment and prevention programs.
“This legislation reflects a simple principle: if skill games are going to be regulated, they should be designed to minimize harm,” Waxman explained.The state estimates there are around 70,000 skill game machines currently operating in Pennsylvania without formal regulation. Governor Josh Shapiro has signaled support for creating a tax and regulatory structure around them.