On December 6, the Commonwealth Court of Pennsylvania struck down a Philadelphia city ordinance that prohibited so-called skill games in most local businesses.
The controversial machines, which function similarly to slot machines by offering cash payouts but claim to require a degree of skill for success, have faced persistent opposition from Pennsylvania’s casino owners and the broader gaming industry. Unlike regulated gambling, skill games remain untaxed and unregulated, lacking safeguards such as responsible gaming measures.
Despite this opposition, skill-game distributors, operators, and Georgia-based developer Pace-O-Matic (POM), known for its "Pennsylvania Skill" game series, have repeatedly succeeded in court. They have secured several rulings overturning law enforcement's attempts to seize the machines.
Ban passed in March
The latest ruling addresses a March ban on skill games enacted by the Philadelphia City Council and signed into law by Mayor Cherelle Parker, according to the Philadelphia Inquirer. The ordinance faced a legal challenge from G&B Amusements, a skill-game distributor, and local gas station owner Harry Sandhu, who operates the machines. Initially, a common pleas court upheld the ban and denied an injunction to halt its enforcement.
In overturning the ban, Commonwealth Court Judge Patricia A. McCullough referred to a prior court ruling that determined games located outside traditional casinos are not governed by the state’s gaming laws. "As the law stands today, POM games situated outside regulated facilities are neither illegal nor regulated," McCullough stated in her decision.
The earlier court ruling cited by McCullough is currently under appeal by the state and awaits a hearing date from the Pennsylvania Supreme Court. If Philadelphia decides to appeal McCullough’s decision, it too will be reviewed by the same court.
“Pace-O-Matic is pleased”
Pace-O-Matic (POM) welcomed the ruling, issuing a statement via Play Pennsylvania. POM spokesperson Mike Barley expressed satisfaction with the court’s decision, stating, “Pace-O-Matic is pleased, though not surprised, that the Commonwealth Court has found the ban enacted by Philadelphia City Council to be unlawful. This outcome is a win for small businesses in Philadelphia that rely on the additional income generated by Pennsylvania Skill games. The ban served only to harm establishments already struggling due to economic conditions.”
The ruling also raises concerns about a similar ban in Bensalem, a Philadelphia suburb that houses Parx Casino, the state’s most profitable casino. According to Play Pennsylvania, enforcement of that ban is currently paused, pending the outcome of appeals in related cases.
The gaming industry has long fought against the spread of unregulated skill games. Both the American Gaming Association and the Association of Gaming Equipment Manufacturers have actively campaigned to restrict the machines.
In a related issue, Pennsylvania casino operators filed a lawsuit in July, challenging the state’s 50%-plus tax rate on slot machine revenues as unconstitutional. The operators argued that the tax creates an unfair burden compared to the untaxed skill games.
