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Pennsylvania casinos demand crackdown on illegal skill gaming machines amid losses

Casinos are closed, but thousands of unregulated machines keep running—draining funds from schools and seniors. Will lawmakers finally shut them down?

The image shows a man playing a slot machine with the words "Jackpot" on it. He is surrounded by a...
The image shows a man playing a slot machine with the words "Jackpot" on it. He is surrounded by a board with text and pictures of fruits, suggesting that he is playing online casino games.

Pennsylvania casinos demand crackdown on illegal skill gaming machines amid losses

Pennsylvania’s 12 licensed casinos have remained closed since mid-March due to the COVID-19 pandemic. Yet thousands of unregulated skill gaming machines have continued operating across the state. Now, the Pennsylvania Gaming Industry Group (PAIG) is pushing for stricter laws to shut them down for good. Governor Tom Wolf has repeatedly stated that skill gaming is illegal in Pennsylvania. Despite this, PAIG estimates around 20,000 unregulated terminals remain active, costing the state an estimated £200 million each year. Unlike licensed casinos and video lottery terminals (VLTs), these machines pay no taxes and operate without oversight.

Casinos and VLTs at truck stops were ordered to close in March, halting their contributions to state-funded programs. Thirty-four percent of regulated slot machine revenue normally goes toward property tax relief for all residents. The Pennsylvania Lottery also supports older adults through property tax rebates, meal programs, and prescription assistance—funding that has taken a hit during the shutdown. PAIG argues that skill gaming devices lack transparency, leaving players unaware of payout percentages. The group is now urging state lawmakers to pass legislation that explicitly bans these unregulated machines.

The push for new laws comes as casinos remain shut and regulated gaming revenue drops. If successful, the legislation would close a loophole that has allowed skill gaming terminals to operate despite the governor’s stance. The move could also restore lost tax revenue for public programs across Pennsylvania.

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