Retailer reports loss of business by 75%
By Kate Northrop
A group of Pennsylvania small business owners are urging their fellow lottery retailers to boycott Pennsylvania Lottery sales after the state's recent removal of skill games left them scrambling to make up lost revenue.
With skill games now officially pulled from retail locations across the state of Pennsylvania, lottery retailers in the Pittsburgh area are reporting steep immediate losses.
Retailers are blaming the state and threatening to pull lottery ticket sales from their counters in protest.
In June, the Pennsylvania Supreme Court ruled that skill games are no different than slot machines and were therefore outlawed. The court imposed a 120-day stay before law enforcement would begin, giving businesses time to remove an estimated 70,000 skill games across the Commonwealth. On Oct. 14, the law enforcement period began.
Pat Schade, co-owner of Plaza News and Lottery in the Hopewell Shopping Center, told WPXI that his first Friday without skill games was nearly empty.
"We should have four or five customers right here now that are not here," Schade told the outlet. "Business has already dropped 75%."
The hit reportedly extends beyond the two store locations Schade operates in Hopewell Township and nearby Aliquippa. He also ran a vending company that installed skill games in other businesses and collected half the profit — a side revenue stream that has now vanished with the removal.
"We're afraid we're going to have to close one store and let six employees go," Schade continued. "That's what it looks like is going to happen."
In response, Schade and co-owner Kerrie Caivano are urging other Pennsylvania lottery retailers to withhold ticket sales for a week in protest, hoping to force state lawmakers back to the table to reconsider their decision.
"One week, do not sell lottery," Schade insisted. "If the state doesn't want to bring skill games, do not sell lottery. If they take our money, we take it from them."
Schade told his interviewers at WPXI that he has already been in touch with other business owners about participating in the boycott.
Among them are Tim and Serena Martz, who own McBride Station in Butler. The couple credit skill games with keeping their business afloat during the pandemic and say they support joining a lottery boycott.
"It seems like the small guys are the ones paying the price for it," Tim said.
"I honestly think we should boycott the lottery so they can understand how bad they're hurting us right now," Serena added.
Pennsylvania Attorney General Dave Sunday addressed the state's enforcement effort on Friday, noting that his office is working alongside the Pennsylvania State Police.
"The Pennsylvania State Police are the ground-level enforcers for the statute," Sunday said. "We would come into play in the event there would be a seizure of any type of equipment."
Business owners who spoke to WPXI said they would support alternative legislation that would allow skill games to continue operating with a $500-per-machine, per-month fee. They oppose Governor Josh Shapiro's proposal to apply a 52% tax to the games.
Whether state lawmakers reconsider addressing the situation remains to be seen. For now, Pennsylvania retailers across the state are left waiting, and in some cases, considering closures and layoffs while the Pennsylvania Lottery continues to be sold at their stores.
Boycott all lotteries. Just stop playing. With RNG, worse odds, lower prizes, increased ticket prices. Just stop playing. They are screwing us. And, we're letting them. Ban anything that they can't tax or get their pockets lined.
Aww Adam, sour much? Yeah!! Out of $3,000.00 wagered in the last two weeks my RTP was 12%. Spread over keno, cash pop, cash 3, mega millions, Powerball, and scratchers. It's never been this bad. At least 35% RTP is what's I've consistently got for years. The last two years have been under 25%.
The government is the mafia nowadays!facts!
What is a "Skill. Game?"
A loophole to get around gambling laws. But it apparently didn't work in this case.
They are just trying to stop us from becoming rich.
Todd, I have the same question. What kind of games were they selling under the definition of "skill games"?
Thanks
Scroll up to the "Tags for this story" section and tap on Video Gaming.
We've published many news stories over the years on the subject, so that's a great place to start.
This what I found:
Unlicensed/unregulated video slot machines.
Mini-casinos with a dash of “hit the button at the right time to stop the spinny thing on the prize indicator”.
The major maker of the games (Pace-O-Matic) argued for years that the tiny skill component to the game puts them outside PA’s definition of illegal gambling machines. The State argued spirit of the law over letter of the law and seized a few and fined some people but then mostly held off while things played out in court.