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State Sen. Marty Flynn said Tuesday that it\u2019s unfortunate legislators couldn\u2019t come together on a bipartisan solution before the deadline to keep skill games operating.<\/p>\n
Flynn, D-Dunmore, said Pennsylvania is nearing the end of the 120-day period the Pennsylvania Supreme Court set for skill games to continue operating without the General Assembly reaching a bipartisan agreement on legislation to regulate and tax the machines.<\/p>\n
On June 15, the Pennsylvania Supreme Court ruled that skill games fall under the definition of slot machines in Pennsylvania\u2019s Gaming Act. The court delayed enforcement of its decision for 120 days, giving lawmakers an opportunity to address the issue.<\/p>\n
With that period ending Tuesday, Oct. 13, businesses operating these machines without the required gaming licenses face enforcement beginning Wednesday, Oct. 14.<\/p>\n
\u201cI have supported efforts to keep skill games operating legally because I recognize what they mean to small businesses across Pennsylvania,\u201d Flynn said. \u201cFor many of these establishments, the additional revenue helps pay employees, cover operating expenses, and keep their doors open. Unfortunately, we have reached a point where those businesses are now facing the loss of that income.\u201d<\/p>\n
Flynn is a co-sponsor of Senate Bill 1079 \u2014 bipartisan legislation introduced to establish a regulatory and licensing framework for skill games in Pennsylvania. The legislation would allow qualifying businesses to continue operating the machines legally while establishing oversight and generating additional revenue for the Commonwealth.<\/p>\n
Despite the expiration of the court\u2019s 120-day period, Flynn emphasized that the General Assembly still has the authority to address the issue through legislation.<\/p>\n
\u201cThis deadline should not be the end of the conversation,\u201d Flynn said.<\/p>\n
Rep. Ryncavage comments<\/p>\n
Rep. Alec Ryncavage, R-Hanover Township, said there are legitimate concerns about the proliferation of miniature casinos operating in strip malls.<\/p>\n
\u201cThat is precisely why regulation is necessary,\u201d Ryncavage said. \u201cI wish my colleagues had done better. This has been a bipartisan issue, with Democrats and Republicans supporting legislation to tax and regulate skill games. The industry itself has been asking for regulation, yet today we are watching these machines leave veterans organizations, volunteer fire companies, and social clubs that have come to depend on that revenue.\u201d<\/p>\n
Ryncavage also said Pennsylvania\u2019s Uniformity Clause presents a serious challenge. He said taxing skill games at a lower rate than casino slot machines \u2014 currently taxed at 52% \u2014 raises constitutional issues.<\/p>\n
\u201cThe skill games industry argues that rate is too high, but lowering the casino tax rate could reduce the gaming revenue that funds the homestead exemption,\u201d Ryncavage said. \u201cWhile casinos never delivered the total property tax elimination originally promised, many homeowners receive a yearly credit of roughly $400. Reducing that revenue could mean even less of the already limited property tax relief homeowners receive.\u201d<\/p>\n
Overview<\/p>\n
The Pennsylvania State Police offered an overview of skill games situation:<\/p>\n
\u2022 On June 15, 2026, the Supreme Court of Pennsylvania ruled that skill games \u2014 often found in taverns, restaurants, social clubs, mini-marts, gas stations, grocery stores, laundromats, pizza parlors, and other businesses \u2014 are in fact \u201cslot machines\u201d as defined in the Gaming Act.<\/p>\n
\u2022 Slot machines are considered gambling devices under the Crimes Code. It is a criminal offense to own, operate, or maintain slot machines without a license issued by the Pennsylvania Gaming Control Board (PGCB).<\/p>\n
\u2022 Further, pursuant to section 5513 of the Crimes Code, distributors and manufacturers of such machines are cautioned that it is a criminal offense to maintain, assemble, set up, make, sell or lease slot machines unless they are licensed and authorized to do so by the PGCB.<\/p>\n
\u2022 Under the Gaming Act, only licensed casinos and qualifying licensed \u201ctruck stop establishments\u201d may legally possess and operate slot machines or video gaming terminals.<\/p>\n
\u2022 Businesses and establishments must arrange to have skill game devices and related equipment removed.<\/p>\n
Enforcement<\/p>\n
All skill games devices\/slot machines located outside of PGCB-licensed businesses are unlawful, and all establishments possessing, operating and\/or maintaining such machines are subject to criminal prosecution and immediate seizure of the machines as of Oct. 14.<\/p>\n
Enforcement actions may include:<\/p>\n
\u2022 Seizing and forfeiting the machines and associated equipment.<\/p>\n
\u2022 Seizing proceeds associated with the operation of the machines.<\/p>\n
\u2022 Filing criminal charges when deemed appropriate.<\/p>\n
\u2022 Administrative citation filed against a liquor license, which may result in a fine and\/or suspension of the license.<\/p>\n
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