THE AGENDA
BY FRANK LEGATO , EDITOR
The Skill Game Battle
The 2004 Pennsylvania Race Horse Development and Gaming Act officially legalized slot machines . The law set out specific requirements for licensing of both manufacturers and operators of slot machines — strict requirements that prospective licensees demonstrate the background and integrity of their executives and companies .
Those rules also govern the slot machines themselves , which are only approved for sale and operation in the state after they are vetted in a lab to ensure their fairness . Other rules were established requiring slot machines , and the locations in which they operate , only be accessible by players age 21 or older .
In recent years , though , slot-like machines have spread throughout the state that have not gone through any of the requirements set out in the law . Their manufacturers and operators claim they are legal because there is a skill factor that can boost a player ’ s chance of winning .
Tens of thousands of these games have popped up , not only in taverns , VFWs and fraternal organizations that otherwise offer charitable gaming , but in a variety of locations where the law never intended gambling to take place .
Last month , there was a rally at the Pennsylvania Capitol in favor of a bill proposed by state Senator Gene Yaw that would legalize and tax the so-called skill games .
“ Pennsylvania ’ s skill game terminals are manufactured right here in Lycoming County and the finished products exist in fraternal clubs , veterans ’ organizations and taverns , as well as other local businesses throughout the commonwealth ,” Yaw wrote on his website . “ Skill games are a piece of the small business economy in our state , and it ’ s time we recognize the benefits of this emerging industry and offer regulatory support , so that we can ensure it flourishes — safely and responsibly .”
First of all , the skill game terminals , branded “ Pennsylvania Skill ,” may be assembled in Pennsylvania , but they are manufactured , leased and sold by a company called Pace-O-Matic , which is based in Georgia and sells the games in several states .
But one other thing that jumps out when reading Yaw ’ s statement is that the games operate in fraternal clubs , etc ., “ as well as other local businesses throughout the commonwealth .” Those ‘ other local businesses ’ include mom-and-pop convenience stores , pizza shops , laundromats and other small businesses that have no entry restrictions based on age .
Jeff Morris , the vice president of public affairs and governmental relations for Penn Entertainment , unveiled a startling slide show at the recent East Coast Gaming Congress showing children , propped up to reach the buttons , playing what just about anyone would recognize as a slot machine . ( See page 46 .) These games are being played by kids . Skill-game supporters repeatedly point to a decision by a district court judge that because there is some skill involved in play , the games are not within the jurisdiction of the Pennsylvania Gaming Control Board . However , the PGCB is appealing that ruling , on the basis of Act 42 , a 2017 amendment to the gaming law that defines a slot machine as any device “ which , upon insertion of a coin , bill , ticket , token or similar object therein or upon payment of any consideration whatsoever ... is available to play or operate , the play or operation of which , whether by reason of skill or application of the element of chance or both , may deliver or entitle the persons playing ... to receive cash ,” or anything else of value .
The amendment specifically defines skill games as slot machines , identifying a “ hybrid slot machine ” as “ a slot machine in which a combination of the skill of the player and elements of chance affect the outcome of the game ,” and a “ skill slot machine ” as “ a slot machine in which the skill of the player , rather than the element of chance , is the predominant factor in affecting the outcome of the game .”
Short version : These games , by law , are slot machines , subject to the gaming law and PGCB regulation .
Operators of regulated slot machines will be watching the Pennsylvania General Assembly closely , and hopefully , new court decisions will rid the state of these illegal slot machines . As for the VFWs , veterans groups and fraternal organizations saying they rely on the revenues the games generate , they can generate just as much revenue , probably more , with regulated slot machines .
If it ’ s the skill they like , try video poker . That ’ s the regulated skill game .
Vol . 22 • No . 6 • JUNE 2023
Roger Gros , Publisher | rgros @ ggbmagazine . com twitter : @ GlobalGamingBiz
Frank Legato , Editor | flegato @ ggbmagazine . com twitter : @ FranklySpeakn
Jess Marquez , Managing Editor jmarquez @ ggbmagazine . com
Monica Cooley , Art Director mcooley @ ggbmagazine . com
Terri Brady , Sales & Marketing Director tbrady @ ggbmagazine . com
Becky Kingman-Gros , Chief Operating Officer bkingros @ ggbmagazine . com
Lisa Johnson , Communications Advisor lisa @ lisajohnsoncommunications . com twitter : @ LisaJohnsonPR
Columnists Frank Fantini | Dave Forman
Contributing Editors Dave Bontempo twitter : @ bontempomedia Alan Campbell | John Brennan | Marjorie Preston Richard Schuetz | Bill Sokolic twitter : @ downbeachfilm Michael Soll _______________
EDITORIAL ADVISORY BOARD Rino Armeni , President , Armeni Enterprises
• Mark A . Birtha , Senior Vice President & General Manager , Hard Rock International
• Julie Brinkerhoff-Jacobs , President , Lifescapes International
• Nicholas Casiello Jr ., Shareholder , Fox Rothschild
• Jeffrey Compton , Publisher , CDC E-Reports twitter : @ CDCNewswire
• Dean Macomber , President , Macomber International , Inc .
• Stephen Martino , Vice President & Chief Compliance Officer , MGM Resorts International , twitter : @ stephenmartino
• Jim Rafferty , President , Rafferty & Associates
• Thomas Reilly , Vice President Systems Sales , Scientific Games
• Michael Soll , President , The Innovation Group
• Katherine Spilde , Executive Director , Sycuan Gaming Institute , San Diego State University , twitter : @ kspilde
• Ernie Stevens , Jr ., Chairman , National Indian Gaming Association twitter : @ NIGA1985
• Roy Student , President , Applied Management Strategies
•
David D . Waddell , Partner Regulatory Management Counselors PC
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4 Global Gaming Business JUNE 2023