The Pennsylvania State Police (PSP) is cracking down on small businesses that are illegally operating slot machines disguised as skill games. Businesses are being warned to remove these machines or face raids and seizures.
In a recent landmark decision, the Pennsylvania Supreme Court ruled that skill games are not exempt from the state’s gaming law, even though they involve an element of skill in addition to chance. This decision gave businesses a 120-day grace period to remove these machines.
Despite the lack of a legislative solution to allow the games to continue, law enforcement has now advised businesses with slot machines to take action.
Pennsylvania Police Warning
The PSP has reminded businesses that the 120-day grace period ends on a specific date, and simply unplugging the machines is not enough to comply with the law.
Simply powering off an otherwise operable machine or unplugging them is not sufficient to comply with the law. If a distributor or vendor is unwilling to remove machines, the establishment is encouraged to proactively reach out to PSP to assist in their removal to ensure compliance with applicable law,” the guidance said.
Police advise businesses to contact their skill game distributors for the removal of the machines before enforcement actions are taken on October 13.
Enforcement actions may include seizure of machines, equipment, and associated money, as well as criminal charges as deemed necessary.
Pennsylvania Skill Games
Despite the Supreme Court ruling, an estimated 70,000 skill games were still operational in the state. Some businesses have not received instructions from leading providers like Pace-O-Matic to remove the games.
State Rep. Russ Diamond (R-Lebanon) plans to introduce a bill to regulate skill games, proposing a 20% tax on skill game revenue and directing tax benefits to the Property Tax Relief Fund.
Diamond’s bill may also include changes to state gaming taxes, which could impact local share payments from casinos. This proposal is expected to face opposition from municipal and county leaders who rely on these payments.