Pace-o-Matic Skill Games Case Headed to Pennsylvania Supreme Court

The Pennsylvania Supreme Court will rule on the legality of slots-like skill machines.
Photo by Ivan Soto Cobos/Shutterstock

Pennsylvania lawmakers still haven’t clarified the legality of skill game machines, but the state’s highest court may soon make that decision for them. The Supreme Court of Pennsylvania has granted state authorities’ request to appeal the December decision by the Commonwealth Court that the machines don’t meet the definition of illegal gambling devices.

Pace-o-Matic and similar companies manufacture amusement devices that bear a superficial resemblance to slot machines but include meaningful—though typically simple—decisions for the player to make. For instance, some versions of these machines allow the player to choose where to place a Wild symbol in order to complete a winning combination.

According to their manufacturers, this makes them games of skill and, therefore, “not gambling” under most legal definitions, which typically use the phrase “games of chance.”

The Pennsylvania Gaming Control Board and state law enforcement disagree. However, the judicial system has generally sided with the manufacturers’ interpretation of the law.

The Supreme Court may or may not concur. However, it has decided that the issues of the case are, at minimum, worthy of a closer look. It will consider these questions raised by the state:

(1) Does an electronic slot machine cease to be an illegal “gambling device,” governed predominantly by chance, if the machine’s manufacturers embed into its programming a so-called “skill” element that is almost entirely hidden from view and is almost impossible to complete?
(2) Should gambling statutes governing “slot machines” be read in pari materia to supply an appropriate definition of the term?

Skill Machines Offer Pros and Cons for Pennsylvania

Although Pennsylvania courts have repeatedly ruled that the machines are not illegal, they aren’t regulated either. That means they don’t have the same oversight as legal slots and video gaming terminals (VGTs). It also means they don’t contribute tax revenue in the same way or to the same extent.

Pennsylvania municipalities have reaped some revenue from skill machines by taxing them the same way they do toy cranes, arcade cabinets, and other such amusement devices. However, the sums in question are paltry compared to the taxes paid by real-money gambling operators. Collecting the taxes has also proven to be logistically complicated. That’s mainly because there are so many of them, and they crop up in unexpected places.

Lawmakers have attempted to address the issue. Unfortunately, there are two camps of thought on the issue, and these have remained deadlocked. On one side are lawmakers advocating for small business interests, arguing that the machines should be regulated and taxed. On the other are those who’ve taken the side of casinos and VGT operators. They say the machines’ ubiquity poses a problem gambling risk, and their legalization would hurt the state’s revenue from existing gambling options.

John Adams, District Attorney for Berks County, is in the former camp. He told PlayPennsylvania:

State legislation needs to act and it needs to act now to bring regulation and taxation to the state. Every day we don’t do something, we’re losing millions in tax revenue.

Neither potential decision by the Supreme Court would restrict lawmakers’ options. Even if the games aren’t gambling, lawmakers could ban them explicitly. On the other hand, they could choose to legalize and regulate them even if the court determines that they are, in fact, illegal under current law.

However, the deadlock in the legislature means a strong bias toward the status quo. Whatever decision the Supreme Court justices arrive at is likely to stand for quite a while unless the opposing camps in the legislature can come to terms.

About the Author

Alex Weldon

Alex Weldon

Alex Weldon is an online gambling industry analyst with nearly ten years of experience. He currently serves as Casino News Managing Editor for Bonus.com, part of the Catena Media Network. Other gambling news sites he has contributed to include PlayUSA and Online Poker Report, and his writing has been cited in The Atlantic.

Get connected with us on Social Media

Want the Good Stuff? We’ve Got You. Get The Drop—Bonus.com’s sharp, weekly newsletter with the wildest gambling headlines actually worth your time. Plus, we’ll hit your inbox now and then with exclusive offers, big jackpots, and other things we’d hate for you to miss.
Select a state
Select a state

                    Alabama                Alabama

                    Alaska                Alaska

                    Arizona                Arizona

                    Arkansas                Arkansas

                    California                California

                    Colorado                Colorado

                    Connecticut                Connecticut

                    District of Columbia                District of Columbia

                    Delaware                Delaware

                    Florida                Florida

                    Georgia                Georgia

                    Hawaii                Hawaii

                    Idaho                Idaho

                    Illinois                Illinois

                    Indiana                Indiana

                    Iowa                Iowa

                    Kansas                Kansas

                    Kentucky                Kentucky

                    Louisiana                Louisiana

                    Maine                Maine

                    Maryland                Maryland

                    Massachusetts                Massachusetts

                    Michigan                Michigan

                    Minnesota                Minnesota

                    Mississippi                Mississippi

                    Missouri                Missouri

                    Montana                Montana

                    Nebraska                Nebraska

                    Nevada                Nevada

                    New Hampshire                New Hampshire

                    New Jersey                New Jersey

                    New Mexico                New Mexico

                    New York                New York

                    North Carolina                North Carolina

                    North Dakota                North Dakota

                    Ohio                Ohio

                    Oklahoma                Oklahoma

                    Oregon                Oregon

                    Pennsylvania                Pennsylvania

                    Rhode Island                Rhode Island

                    South Carolina                South Carolina

                    South Dakota                South Dakota

                    Tennessee                Tennessee

                    Texas                Texas

                    Utah                Utah

                    Vermont                Vermont

                    Virginia                Virginia

                    Washington                Washington

                    West Virginia                West Virginia

                    Wisconsin                Wisconsin

                    Wyoming                Wyoming
Rest of the World
No Results
You are already subscribed to our newsletter. Want to update your preferences data?
Thank you for signing up! You’re all set to receive the latest reviews, expert advice, and exclusive offers straight to your inbox. Stay tuned!
View Offers
Something went wrong. Please try again later