As of Wednesday, tens of thousands of skill games that had become popular in Pennsylvania's bars, corner stores, and small businesses are now deemed illegal. This follows the expiration of a 120-day window for lawmakers to develop regulations governing the slot-like machines, which ended Tuesday without any legislative action.
In June, the Pennsylvania Supreme Court determined that these skill games were illegal slots, overriding previous court decisions that had favored their legality. This ruling marked a significant turn in the ongoing conflict between skill game manufacturers and the state’s casino industry, which argued that these machines undermined consumer protection and reduced tax revenues. While casino slots face a 54% tax rate in Pennsylvania, skill games operated untaxed and without regulation.
To give lawmakers time to create regulations under the Pennsylvania Gaming Control Board (PGCB), the court had allowed for a 120-day enforcement delay. However, that grace period has now lapsed, prompting warnings from state police that any businesses continuing to operate skill games risk confiscation of the machines and criminal charges.
According to a statement on the state’s official website, "Under the Gaming Act, only licensed casinos and qualifying licensed 'truck stop establishments' can legally possess and operate slot machines or video gaming terminals. Furthermore, only machines that have been inspected and approved for operation by the PGCB are authorized for use within PGCB-licensed locations, including casinos and truck stops."
The resemblance of skill games to casino slots has fueled controversy. They mimic slot machines closely but, as the term "skill games" implies, they typically incorporate some element of skill. This design often provides players with opportunities to recover lost bets.
While skill games can be found in multiple states, Pennsylvania had emerged as a major hub prior to the enforcement of the ban. The state hosts around 25,000 regulated casino slots, while estimates suggest that the number of skill games could be between 50,000 to over 70,000.
Pennsylvania has positioned itself as one of the largest regulated casino and slot markets in the United States. In the initial two months of the 2026-27 fiscal year, slot machines in the state generated $427 million in gross revenue, contributing $145 million to state taxes, according to the PGCB. Additionally, video gaming terminals at licensed truck stops brought in $6.7 million in revenue and $2.8 million in tax income during the same period.
Certain local reports indicated that casinos and truck stops might retain or install skill games if they were approved by the PGCB. However, a spokesperson for the board clarified that this information is incorrect; all skill games are now illegal, and only PGCB-approved slots and VGTs are considered lawful.
The combination of the Supreme Court's ruling and the expiration of the legislative window could be viewed as an unexpected development for Pennsylvania. There was an expectation that a legislative compromise might be reached. The significant number of machines and their contribution to local business revenues were believed to pose substantial obstacles to a total ban.
Two bills introduced—HB 2213 and SB 1079—aimed to impose a $500 monthly fee for each skill game terminal while capping the total number of machines statewide at 50,000. Proponents of these bills anticipated generating $300 million annually in tax revenue. However, neither bill gained sufficient traction as the state’s two-year legislative session is set to end on November 30.
Susan Hensel, a gaming attorney in Pennsylvania and former director of licensing for the PGCB, noted in July that regulation of skill games had been a frequent topic of discussion, but manufacturers lacked strong incentives for change. She forecasted that a compromise would materialize during the negotiation period.
"There are very few parts of Pennsylvania that don't have these games, and we anticipate that right now state representatives are receiving calls from establishments in their districts asking, 'What can you do to keep the money flowing?' Many businesses have come to depend on the revenue from these games for their profitability and, in some cases, survival," Hensel remarked.
