On 6 December the Commonwealth Court of Pennsylvania overturned a Philadelphia city ordinance banning so-called skill games at most city businesses.
The controversial machines, which resemble and pay out cash like slot machines but purport to involve a level of skill that contributes to winning, have long been opposed by Pennsylvania’s casino owners and the industry at large. Skill games are unregulated and untaxed. They also do not have player-protection guarantees such as responsible-gaming measures.
However, skill-game distributors, operators and Georgia-based Pace-O-Matic (POM), developer of the prominent game family branded as “Pennsylvania Skill”, have won several court decisions overturning law-enforcement seizures of the game.
Ban passed in March
This latest decision addresses a ban on skill games passed in March by the Philadelphia city council and signed by the mayor, Cherelle Parker, per the Philadelphia Inquirer. Skill-game distributor G&B Amusements and local gas station owner Harry Sandhu, who operates the games, challenged the ban. A common pleas court judge upheld the ban. The judge also denied a motion for an injunction to prevent enforcement of the ordinance.
In holding for the skill-game operators the Commonwealth Court judge, Patricia A McCullough, cited a court decision that held that games not located in regular casinos are not subject to the state’s gaming laws. “As the law stands today, POM games that are located outside of regulated facilities are neither illegal nor regulated,” McCullough wrote.
That former court decision was appealed by the state. That case is awaiting a hearing date by the Pennsylvania Supreme Court. Should Philadelphia appeal McCullough’s decision, it would land before the same court.
“Pace-O-Matic is pleased”
Pace-O-Matic promptly praised the decision. In a statement published by Play Pennsylvania, POM spokesman Mike Barley said, “Pace-O-Matic is pleased, and not surprised, that Commonwealth Court agrees the ban passed by Philadelphia city council is unlawful. Lifting it is a victory for Philadelphia small businesses that count on the supplemental income they receive when patrons play the Pennsylvania Skill games they operate in their establishments. This ban did nothing more than harm businesses that are already struggling because of the economy.”
Meanwhile, the decision calls into question a similar ban passed by Philadelphia suburb Bensalem. The state’s most successful casino, Parx, is located there. According to the Play Pennsylvania report that ban is now on hold pending the outcome of appeals in the other cases.
The proliferation of unregulated skill games has been battled by the industry for years. The American Gaming Association and the Association of Gaming Equipment Manufacturers have partnered to oppose the machines.
In July, Pennsylvania casino operators sued the state to have their own 50%-plus tax rate on slot revenues declared unconstitutional. They argued unfair taxation since the skill games are untaxed.
