Pennsylvania State Police say they are preparing to act if lawmakers do not create a new regulatory framework for skill games before the court’s 120-day stay expires.
Pennsylvania businesses with so-called skill games are approaching a major deadline. On October 13, 2026, the state’s Supreme Court ruling classifying the machines as illegal slot machines is expected to take effect unless the General Assembly passes legislation that legalizes and regulates them.
The June 15 decision put an end to years of legal uncertainty around the machines, which are commonly found in taverns, social clubs, gas stations, convenience stores, restaurants, and other locations across the state. Pennsylvania State Police have said they will be “prepared to act” when the court’s stay expires and are developing enforcement plans with local agencies.
Gov. Josh Shapiro has raised concerns about the growth of unregulated skill games in Pennsylvania for months. He has argued that the machines contributed to an estimated $200 million decline in Pennsylvania Lottery revenue over the past five years, potentially affecting programs funded by lottery proceeds.
Casino operators have also voiced concerns. Leaders at Presque Isle Downs & Casino have said the widespread availability of skill-game machines may draw players away from regulated casinos, which must meet licensing, tax, and consumer-protection requirements.
Supreme Court Rejects “Skill” Argument
The Pennsylvania Supreme Court considered two cases involving machines promoted as games of skill, including devices connected to Pace-O-Matic. These machines often look and operate like digital slot machines, with spinning reels, matching symbols, cash wagers, and potential payouts.
Manufacturers and operators argued that a secondary game feature—often a memory challenge called “Follow Me”—turned the devices into legal games of skill. In that feature, a player attempts to repeat a growing sequence of colored lights after an unsuccessful base-game spin.
However, the court ruled that the devices are subject to both the Pennsylvania Gaming Act and the state Crimes Code. Justice David Wecht’s majority opinion called the earlier Commonwealth Court interpretations “deeply flawed” and found that the legislature had already addressed the issue through 2017 amendments to the Gaming Act. Those amendments specifically include “skill slot machines” and “hybrid slot machines” within the legal definition of a slot machine.
In short, the court found that a skill-based feature does not remove a machine from Pennsylvania’s gambling laws when the machine otherwise operates as a slot machine.
Why Enforcement Has Not Started
The court did not order immediate enforcement. Instead, it stayed its ruling for 120 days, creating a temporary safe harbor for businesses and operators that relied on prior court decisions and believed the machines were lawful.
During that period, the court ordered that law enforcement agencies cannot take adverse action against owners or operators based on the new ruling. The stay is set to end around October 13.
The court also made clear that the General Assembly can still change the law. Lawmakers could create a licensing, taxation, and regulatory framework for the machines, or they could take no action and allow the court’s ruling to stand.
That legislative window is shrinking. As of early August, lawmakers were not scheduled to return to Harrisburg until late September, leaving limited time to negotiate a deal before the deadline.
Police Prepare for Potential Action
Pennsylvania State Police have said they will strongly encourage businesses and operators to voluntarily comply with the ruling. The agency also plans to offer a way for locations to remove machines without waiting for formal enforcement action.
Still, there is no single statewide enforcement plan among district attorneys. County prosecutors may take different approaches depending on local priorities, staffing, and the number of machines in their areas.
The Attorney General’s Office has said it will follow the law, with State Police and its Liquor Control Enforcement Bureau expected to play important roles. Local police departments and prosecutors may also be involved, while the Attorney General’s Office could handle asset-forfeiture cases involving seized machines.
For liquor license holders, the stakes may be especially high. Allowing illegal gambling activity can create serious licensing concerns, making voluntary removal a safer option for bars, taverns, clubs, and similar businesses if no new law is passed.
Tens of Thousands of Machines at Stake
Estimates place the number of skill-game machines in Pennsylvania at roughly 70,000. That is a massive enforcement challenge, especially because the devices are spread across an estimated 10,000 locations statewide.
The machines became common after earlier lower-court decisions placed them in a legal gray area outside normal casino gambling regulations. That allowed them to spread well beyond casinos and licensed gaming venues.
Supporters say skill games provide important revenue for small businesses, veterans’ organizations, and fraternal clubs. Critics argue that the unregulated machines lack consumer safeguards, transparency standards, and the oversight applied to casino slot machines. The broader debate also includes concerns about problem gambling and cash-related crime at locations hosting the devices.
Can Pennsylvania Lawmakers Reach a Deal?
State lawmakers have debated skill-game regulation for years, but they have not reached an agreement on taxation, licensing, terminal limits, or the role of the Pennsylvania Gaming Control Board.
One central disagreement is the tax rate. Gov. Josh Shapiro proposed a 52% rate, close to The Keystone State's 55% tax on casino slot-machine revenue. Senate Republican leaders had backed a 35% rate, while other proposals suggested lower rates.
Supporters of regulation argue that a legal market could generate substantial state revenue. The Independent Fiscal Office estimated that taxing skill games under a regulatory system could eventually produce more than $1 billion annually, though the final total would depend on the tax rate, number of machines, and structure of any law that passes.
No matter what happens in Harrisburg, businesses should pay close attention to the October deadline. Without a new law, the Supreme Court’s decision will leave unlicensed skill-game machines subject to Pennsylvania gambling laws once the stay expires.
