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Pennsylvania Skill Games Face Gambling Reclassification

New York Times Business •
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David Peck, 46, of Millheim, Pa., lost $60,000 over six months playing 'skill games' at his local convenience store. These kiosks, resembling slot machines, were long considered legal in Pennsylvania because players could switch to skill-based games after losing. However, the Pennsylvania Supreme Court recently reclassified them as gambling, forcing lawmakers to decide their fate.

Pennsylvania has between 70,000 and 100,000 of these machines in convenience stores, bars, and other venues. Outlets keep a portion of player losses, making the revenue essential to their bottom line.

Pace-O-Matic, the leading skill games company, introduced kiosks in Pennsylvania in 2013. After state police confiscated them, the company sued and won, arguing the games were predominantly skill-based. The recent Supreme Court ruling states that if a device is partially used for gambling, it is a gambling device. Unless lawmakers pass new protections, the games become illegal in October.