Legal battle over regulation of skill games goes to highest state court
By Kate Northrop
Six Pennsylvania casinos and a skill game manufacturer are taking their case to PA Supreme Court.
For years, skill game manufacturer Pace-O-Matic (POM) has operated in Pennsylvania while simultaneously defending its ability to operate legally in the state.
POM will face off against six Pennsylvania-based casinos in POM of Pennsylvania v. Department of Revenue, in which the highest court in the state will rule on the legality of skill games in Pennsylvania.
Six Pennsylvania casinos, represented by Lamb McErlane, are teaming up with the Pennsylvania Gaming Control Board (PGCB) and the Department of Revenue to oppose POM in the case. Since the case has reached the highest court in the state, this will be the last opportunity for the PGCB and the Department of Revenue to win.
McErlane's managing partner, Joel Frank, said he is "pleased that the issue has now reached the state's highest court," adding that "it's a widespread issue because [skill game machines are] popping up everywhere."
The reason why it is in the PGCB's best interest to beat POM is because skill games are considered unregulated competitors in the gaming industry, either detracting from lottery- or casino-based revenue or producing revenue that may otherwise be controlled by the state.
In November 2021, the PGCB had also given two Pennsylvania casinos approval to remove several slot machines from the floor because the proliferation of skill games across the state were eating into slot machine revenue and reducing the need for slots.
"The board believes the Gaming Act was meant to establish the law of the Commonwealth relative to all slot machine gaming, authorizing it at certain locations and on approved machines, while disallowing it everywhere, and on everything else," Chief Counsel for the PGCB Stephen Cook said in an email to PlayPennsylvania.
The last time the PGCB went up against POM was a month ago, when a court order determined that the state had wrongfully seized POM's machinery on the grounds that "the devices at issue are legal games of skill," and that the state had "failed to establish that the devices, as designed, are games of chance."
There have been multiple documented incidents in which the state had seized POM skill game property, including a time in May 2022 that saw five devices, 30 weekly accounting documents, a D-Link router box, a NetGear router box, and $5,000 removed from POM's possession. Although the state did not admit to any "wrongdoing," they returned all seized items to POM in every case.
"Every time the legality of our skill games has been called into question, the legal status of our games has been upheld by the judiciary," POM spokesperson Mike Barley said after last month's court order in favor of POM was issued. "Pace-O-Matic stands out among our competitors as the active and driving force seeking additional regulation and taxation. We remain steadfast in our commitment to working with the state General Assembly and asking for legislation providing additional regulation and increased tax money for the state."
If Pace-O-Matic has operated in the state for years and judges keep confirming their right to operate and they are obviously not breaking any laws, the state lawyers and the Gaming Control Board should move on to more important matters. This seems to be a losing fight based on the lower court rulings. A very famous singer once said 'You gotta know when to hold 'em and know when to fold'em.
I typed 'Pace-O-Matic' into youtube. One of the games looks like you can be guaranteed to win money if you have above average short term memory.
It is very rare and transitory that a State not abuse monopolistic coercive powers. I refer you to the great Murray Rothbard.
Can anybody recommend a good source for a thorough description of "skill games" machines and how they work? Besides Wikipedia. I've heard of these machines but have never seen one and I always think arcade games or electronic versions of card games, but I was told they are not exactly like that, I was told they are somewhat easier. What type of mental skill-based tasks do you have to perform to win?
Here you go.
https://fb.watch/jJWef9KHGR/
Thanks, that was helpful. The tic-tac-toe game he demonstrated looks easy as he11, I'm confused how a business hosting these machines is supposed to make money if you can win every time. Do they depend on drunk patrons who don't have their wits about them?
Since i am learning to software programming, if I can find something on wordpress and my shopify store and work out a deal with a company or gaming that could make a fortune. the supreme court thing is a political theatre. Just let these companies do their thing, produce revenue. So obvious. When people shop, they can play a game or two as long as it is what it is.
I've played these a couple times and can confirm you do not win every time. There's still a big element of luck to them because it's a matter of playing a large enough bet when the pattern shows up that allows you to win. Having said that, these are in many/most of the smaller convenience stores near me and there's almost always one or two people playing on them when I go in. I asked the store clerks about them and the response has been that some people much prefer them over PA lottery because it's much easier to walk out with a couple hundred more than you came in with. Overall ,still a moneymaker for the convenience stores.
I can see why casinos hate the skill games, but because these can be set up virtually anywhere, they are within a couple minute drive from most people where the casinos for most people are not easily available. I've only been to a casino once and have zero desire to go back. I also have no desire to sit for a couple hours at a skill game to win a couple hundred bucks, but I don't think it's in the best interest of the public to make the skill games illegal. If the casinos want to draw more people, find a way to get into the skill game business and provide some winnable prizes there that can only be claimed at a casino. This ain't rocket science guys. If you want to succeed, learn to compete, not litigate.