Pennsylvania’s highest court has cleared a major legal hurdle for regulating skill games, setting the stage for sweeping changes to an industry that has operated for years without the same oversight required of casino slot machines.
In the aftermath of the Pennsylvania Supreme Court ruling, the Pennsylvania Gaming Control Board said it is ready to regulate skill games, which are now considered effectively the same as slot machines. Board officials said the decision brings long-sought clarity and opens the door to regulations they previously could not enforce under earlier interpretations of the law.
“We’re pleased that the Pennsylvania Supreme Court has agreed with that and help bring some clarity now to this matter,” said Douglas Harbach, director of communications for the Pennsylvania Gaming Control Board.
The board regulates and sets guidelines for legalized gambling in Pennsylvania, but officials said skill games had not been subject to those protections. Harbach said the lack of regulation raised multiple concerns, including consumer safeguards, accountability and preventing minors from accessing the machines.
“It didn’t have any of the protections in place that we have for things like slot machines in Pennsylvania where there was nothing that had any guaranteed paybacks. There was no mechanism to be able to count revenue and then of course collect some taxes off of it. And maybe most importantly, it didn’t have any mechanisms in place to keep underagers from getting on to these machines,”
What comes next will be decided by lawmakers. Legislators have 120 days to create new regulations, and Harbach said the industry should expect the landscape to change once a law is passed.
“The market as it stands today, likely will look different than it does after the passage of a law,”
Harbach said potential legislation could address where skill games are allowed to operate and could require licensing for individuals and companies involved.
“A law could only place these machines in various locations. It may also put in place ways in which we have to license individuals and companies for these. All those things have to be looked at,” he said.
During the 120-day period, Harbach said the Gaming Control Board will look to legislators as they update the law and will be available to help ensure any new framework prioritizes public protections.
“I see this as the next important step to making sure that a form of gaming in Pennsylvania is fully regulated in order to protect the public,”