Pennsylvania Skills Games hosting company sues Philadelphia over proposed ban
A Philadelphia supermarket with so-called skill slot machines has filed a lawsuit against the city over its ban on the controversial gray slot machines in most stores.
The Philadelphia City Council passed a bill last month that would change city code to ban slot machines that involve a skill element. The regulation is awaiting signature from Philadelphia Mayor Cherelle Parker.
Tariq Jalil owns a 7-Eleven chain in South Philadelphia. He teamed up with Pace-O-Matic (POM), Pennsylvania's leading provider of skill games and software developer of the popular game "Pennsylvania Skill," to file a lawsuit against the city, alleging that the proposed ban violated the U.S. Constitution. nation.
City officials say unregulated, tax-exempt playground equipment is causing people to gather at gas stations and corner stores. This resulted in crime, robberies, organized crime, fights and shootings.
Bill 240010 would ban skill games at all establishments except those that are licensed and have at least 20 seats for guests to eat and drink. If Parker signs the measure, businesses that violate local regulations would face fines of $1,000 per device per day.
Skill Game Company Financing Litigation
POM is not involved in the lawsuit, but the Philadelphia Inquirer reports that the Georgia-based company is funding the lawsuit. Philadelphia attorney Matthew Haverstick is representing Jalil.
"They're not crime magnets," Haverstick said of skill games. "These are small businesses surviving on razor-thin profits."
Assemblyman Curtis Jones Jr. is the author of the proposed skill games law. He said the city would not be impressed by the skill gaming industry and its attorneys.
The gaming industry has powerful lobbyists and deep pockets. We are being sued by the industry, but we will not accept the status quo. Not anymore,” Jones explained.
Pennsylvania's casino industry opposes the proliferation of skill games. Casino lobby groups argue that skill games drain revenue from slot machines, which are heavily taxed, regulated and have high licensing fees.
There are two casinos in Philadelphia – Live! Philadelphia Casino Hotel and Philadelphia River Casino. Parks Casino is the richest casino in the state and is located just north of the city of Bensalem.
It is estimated that there are more than 80,000 of these games in restaurants and bars, convenience stores, grocery stores, gas stations and retail stores across the commonwealth.
Strong Supporter
Philadelphia’s ban on skill competitions at most businesses could be short-lived if Philadelphia Gov. Josh Shapiro (D) has his way. The Governor has included skill game revenue in his 2024-25 budget proposal.
Shapiro estimates that a 42% tax on skill-based games would bring in about $150 million in new year revenue. Other laws have been passed in Harrisburg and are still being discussed.
A state court has ruled that games of skill like "Pennsylvania Trick" do not violate the state's gambling laws because their outcomes do not depend entirely on chance. POM has repeatedly called on the state to legalize and tax gaming.
Legal skill games are legal but not fully regulated. Illegal slot machines are simply illegal gambling devices. “Pace-O-Matic has led regulatory efforts in every state in which we operate,” Pace-O-Matic President and CEO Paul Goldean told the state’s Community, Economic and Recreation Committee before the Pennsylvania Senate last October.
"We work hard to establish a regulated marketplace that creates a level playing field and provides our operators, sites and law enforcement with clear guidance on the legality of skill gaming," Golden added.
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Source: www.casino.org
