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In Major Decision, Pa. Supreme Court Rules ‘Skill Games’ Are Slot Machines
The ruling opens the door to taxation and tighter limits on an estimated 70,000 machines statewide, officials said.
On Monday, the Pennsylvania Supreme Court ruled that skill games are legally slot machines, overturning lower court decisions and issuing a 120-day stay on enforcement to allow legislative action.
Operating in a legal gray area for years, an estimated 70,000 skill game machines have proliferated across Pennsylvania bars, social clubs, and convenience stores despite operators' claims they required skill rather than chance.
Attorney General Dave Sunday called the ruling a "significant victory for consumers, taxpayers and the rule of law," while Pace-O-Matic warned the decision will have "far-reaching consequences" for more than 10,000 small businesses.
Senate President Pro Tempore Kim Ward and Majority Leader Joe Pittman called the ruling a "critical piece of resolving this year's budget," as Governor Josh Shapiro has proposed a 52% tax rate on the devices.
With a 120-day grace period, lawmakers must decide the industry's future; Pace-O-Matic urged the General Assembly to approve bipartisan proposals charging a $500 fee per machine instead of imposing stricter slot-machine restrictions.