State Police: 99% of PA businesses have complied with skill games enforcement

The Pennsylvania State Police said Tuesday that more than 99% of businesses that previously operated skill game machines have complied with calls to remove the gaming machines following an October compliance deadline. 

The widespread removal of skill game machines from bars, clubs, convenience stores and other locations comes after the Pennsylvania Supreme Court ruled that the games are illegal slot machines – and that only locations licensed by the Pennsylvania Gaming Control Board may house electronic gaming machines. 

After issuing its ruling over the summer, the court instituted a 120-day safe harbor period protecting businesses with skill games from prosecution. That safe harbor period ended in October, and the Pennsylvania State Police began enforcement on Oct. 14.

To date, the State Police said they have visited 12,202 locations across the state to look for skill games. Of the 12,202 establishments visited, 12,134 no longer have skill games – a 99.4% compliance rate. 

The agency said it has seized 14 machines and $1,913 from locations that still had skill games following the enforcement deadline. 

Lawmakers in Harrisburg have debated for years whether to tax and regulate skill gaming machines, with Gov. Josh Shapiro calling for a 52% tax on gross terminal revenue from skill games in his most recent budget address. Shapiro’s administration estimated that his framework could have generated $2 billion in annual state revenue. 

While some lawmakers supported Shapiro’s proposal, others called for a different approach, such as a $500 monthly per-terminal fee for businesses operating skill game machines. Proponents of that method estimated it could generate $700 million in annual revenue. 

Ultimately, lawmakers didn’t vote on any skill games-related legislation ahead of the Oct. 13 enforcement deadline, despite pleas from business owners, fraternal clubs and other organizations, prompting law enforcement to urge businesses with skill games to remove the machines or risk facing criminal penalties. 

The State Police said they are continuing to investigate businesses that have failed to voluntarily remove skill game machines, and that those investigations are active and ongoing.

The agency also said it has encountered cases where businesses claimed to be operating legal gaming machines, stating that they do not accept cash and operate more like a sweepstakes than a slot machine. The State Police clarified that machines that accept “any form of compensation from a player to engage in slot-style games with spinning reels and/or video displays, offering the player an opportunity to obtain cash, credit, or financial reimbursement” are considered slot machines or gambling devices under state law. 

“No manufacturer or operator sought PSP’s input on the legality of these devices before placing them inside Pennsylvania businesses,” the State Police said in a press release. “Distributors of these devices and establishments hosting them could face criminal charges for unlawful gambling and other related offenses if they continue operating these machines.”