Published on: June 17, 2026, 02:21h.
Updated on: June 16, 2026, 12:22h.
- Penn Entertainment poised to gain from the removal of skill games
- PA Supreme Court classifies skill games as slot machines
- Skill games permitted to operate for an additional three months
Penn Entertainment is optimally positioned to benefit should skill games be eliminated from the landscape of small businesses in Pennsylvania.
Recently, the Pennsylvania Supreme Court determined that skill games fall under the legal definition of slot machines. This ruling implies that the approximately 70,000 machines spread across the state are illegal according to the current state Crimes Code and Gaming Act.
This landmark decision marks a significant triumph for Pennsylvania’s legal gaming sector, which ranks as the third-largest nationally, following Nevada and New Jersey. For years, land-based casinos in the state have contended that skill games constitute illegal gambling and detract business from their regulated and heavily taxed slot offerings.
In the aftermath of the PA Supreme Court ruling, gaming analysts are assessing which casino operators stand to gain the most from the anticipated withdrawal of skill games.
Penn Likely to Be the Biggest Beneficiary
Analysts Jorden Bender and Isabelle Slavin from Citizens’ Gaming, Online Gaming & Gaming Technology coverage assert that Pennsylvania’s own Penn Entertainment is in the most advantageous position to profit from the potential disappearance of skill games.
“Operators in the grey market and commercial casinos have been embroiled in legal battles to determine if these untaxed machines, present in places like bars, restaurants, convenience stores, and truck stops, should be eliminated or regulated. While quantifying the size of this unregulated market is challenging, estimates have varied from 70,000 to over 100,000 machines. We believe these units compete directly with traditional brick-and-mortar casinos,” read the report from Citizens.
“In our analysis, Penn is expected to reap the most benefits due to its market presence, with Boyd Gaming and Churchill Downs also standing to gain, albeit to a lesser extent. We foresee a slight advantage for online gaming platforms like DraftKings, Flutter (FanDuel), Rush Street Interactive, and MGM Resorts (BetMGM), as some slot-oriented customers may transition to online options,” noted Bender and Slavin.
Penn Entertainment operates four casinos in Pennsylvania, namely Hollywood Casino at Penn National Race Course in Grantville, Hollywood Casino York, Hollywood Casino at The Meadows in Washington, and Hollywood Casino Morgantown.
Boyd Gaming manages Valley Forge Casino Resort, and Churchill Downs Inc. oversees Presque Isle Downs Casino in Erie. Additionally, all three operators have significant investments in Pennsylvania’s iGaming market.
Uncertain Future for Skill Games
The Pennsylvania Supreme Court has issued a 120-day moratorium on its skill game decision, allowing the General Assembly time to potentially legislate on the authorization and regulation of skill games. If this occurs, players may face stricter odds due to state fees and taxes.
The Citizens report presumes that a significant portion of the current skill game players will shift their betting to physical casinos and/or online gaming platforms should the Pennsylvania Skill cabinets be removed.
Casino.org reports that many skill game enthusiasts may not be inclined to visit casinos, as they prefer low-stakes options that are often unavailable at traditional casinos, opting instead to enjoy their gaming experiences in local bars, fraternal organizations, or social clubs where the atmosphere is friendly and the food and drinks are affordable.