So-called “skill games” or “skill machines” are among the most widespread forms of gray market gambling in the US. These machines often resemble slots, though some are more like arcade games. Players pay to play and receive vouchers when they win, which they can redeem with the merchant hosting the machine.
The manufacturers and operators claim these machines do not qualify as gambling devices because of the games’ skill element. Most legal definitions of gambling hinge on the phrase “games of chance.”
Skill games pose a legislative challenge for states because small businesses come to depend on their revenue, yet legal gambling operators would like to see them outlawed. They remain in legal limbo in most states, though a few have managed to clarify the issue: in Arkansas, they have been legal since 2008, while Kentucky banned them in 2023.
Digital skill games also exist in the mobile gaming space. FanDuel has branched out into that market with its FanDuel Faceoff product. Other companies, like Skillz, focus entirely on mobile skill gaming.
