The Pennsylvania Supreme Court has published its highly anticipated opinion on the legality of “skill games” in the commonwealth, asserting that the terminals are gambling devices. The ruling effectively means that the games offered by many businesses in Pennsylvania will run afoul of gambling laws when a stay that the court placed on its ruling expires.
The Court issued the immediate stay with its opinion to give legislators in Harrisburg an opportunity to enact new legislation that could allow the games to continue on some level. Legislation toward that end has already been proposed in the state capitol, but there is reason to doubt it will progress within the stay period.

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The Pennsylvania Supreme Court issued a 4-2 opinion on Monday overturning a lower court ruling in the matter of The Commonwealth of Pennsylvania v. POM of Pennsylvania, Inc. POM is an acronym for Pace-O-Matic, the company that distributes the gaming terminals known as “skill games” in Pennsylvania.
“Skill games” is industry jargon for electronic gaming terminals that resemble slot machines in form and function. The difference that POM and others have touted is that the game design allows users to try to recoup lost wagers via a skill-based element like a memory game.
The commonwealth court found that Pennsylvania law enforcement improperly seized “skill games” terminals and related assets, ruling that the skill element was enough to keep the devices out of Pennsylvania gambling laws. The Supreme Court disagreed upon appeal, though, calling the commonwealth court’s decision “deeply flawed.”
The majority opinion sums up the new status quo for “skill games” and the path forward for their operation in a key paragraph.
“...as it concerns their unregulated operation in unlicensed facilities throughout Pennsylvania, it is not this Court that declares ‘skill games’ to be unlawful. Rather, it is the General Assembly that did so nearly a decade ago. If interested parties find the application of the General Assembly’s laws to be undesirable, the proper remedy lies with the same legislative body that wrote those laws. The solution is not for courts to adopt strained and untenable readings of statutes to avoid their application.”
To accommodate POM and its partners seeking that specific remedy, the Supreme Court issued a 120-day stay of its opinion. During that time, the focus for businesses offering “skill games” to customers will be on the legislature in Harrisburg.
On Monday, Stephen Caruso, Katie Meyer, and Jaxon White of Spotlight PA reported that legislative leaders in Harrisburg along with Pennsylvania Gov. Josh Shapiro “are reviewing the ruling.” The reporting also states that there is a “broad consensus that this regulation should happen.”
Shapiro called for “skill games” regulation and taxation in his most recent budget proposal as well. One potential point of opposition could be the commonwealth’s gambling licensees, though.
Through the court cases, casino operators in Pennsylvania have voiced concerns that previous regulation proposals have given “skill games” distributors an unfair advantage, as proposed tax rates were lower than what the casinos pay on their slot revenue. Shapiro’s proposal sought to address that concern by levying a 52% tax on “skill games.”
However, legislators have balked at that, wanting a lower rate for what they argue are smaller businesses. Some lawmakers have expressed responsible gambling worries as well, which could hamper securing requisite support for a quick passage before the 120-day stay expires.
If new laws aren’t put into place within the next four months, businesses that work with POM in Pennsylvania will have to assess their options, which could include removing the devices.
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