American court decision on games of skill.
The Pennsylvania Commonwealth Court (PCC) has recently decided that Pace-O-Matic (POM) skill machines are considered slot machines. This classification applies not only to POM but also to Savvy Dog Systems' machines. These controversial "Pennsylvania Skill Machines" are now considered over 5,000 illegal slot machines operating in bars, restaurants, cultural centers, and shopping malls across Pennsylvania.
This verdict has been a subject of much debate amidst concerns about potential gambling risks. There have even been incidents of machines being seized at the request of municipalities and cities, like Philadelphia. Last year, POM even filed a lawsuit against the state and Philadelphia, claiming that their machines offered "skill games," making them exempt from being classified as slot machines in Pennsylvania state laws. They also argued that the machines would not be under the jurisdiction of the Pennsylvania Gaming Control Board (PGCB).
However, in a counterclaim, the Department of Revenue demanded that POM remove its machines from all facilities in Pennsylvania, cease sales and distribution, unless they obtain the necessary licenses from the Gaming Control Board. PCC Judge Patricia McCullough found that simply incorporating "elements of skill" doesn't necessarily make these machines exempt from the definition of a slot machine under the Pennsylvania Gaming Act. Instead, she concluded that the controversial machines fall under the jurisdiction of state criminal law rather than the Gaming Act.
In other words, the state has the jurisdiction over these machines, but POM lost this battle with the PCC ruling.
Victory for POM's opponents
Despite the ruling, opponents of POM and similar machines are celebrating. They now demand that the state seize these machines across Pennsylvania. For instance, the Pennsylvania Lottery, a vocal critic of these machines, argues that their presence has cost the company up to $185.2 million in lost lottery ticket sales. They even sent a bill to the state senator and referred it to the Senate Judiciary Committee, labeling the machines "illegal gambling."
Another advocate against POM is the Philadelphian Parx Casino, which voiced its joy following the verdict. The Vice President of the Casino, Thomas C. Bonner, took a tough stance, stating that the machines would "fall into disrepair." Bonner also emphasized that the manufacture, installation, sale, leasing, or ownership of these gaming machines is illegal under Article 18, § 5513, of the Pennsylvania Crime Codes.
Additionally, he noted the need for child and youth protection and demanded that all state authorities, including FBI, district attorneys, and police departments, enforce the law to shut down these illegal machines.
Pennsylvania's focus on online gambling
Since the repeal of the Professional and Amateur Sports Protection Act (PASPA) in May 2018, Pennsylvania has been working on legalizing online gambling. To this end, the state, with a population of 12 million, has already legislated on online sports betting, casinos, and poker.
Parx Casino, one of Pennsylvania’s largest casinos, benefits from this shift. In January, the casino announced a sports betting deal with Kambi. Then, in February, they entered into an online casino deal with NetEnt, one of Europe's leading suppliers to have received an interactive gaming license in Pennsylvania.
In November, Parx Casino launched the first legal online poker room in the state. Their online revenue is expected to grow as non-POM machines take over. Furthermore, the regulation of this new sector increases revenue for the state's treasury given the high tax rates on online slots at 54% and a 36% tax on bets in Pennsylvania.
Read also:
Source:
