Philadelphia’s Ban on Skill Games Overturned by Pennsylvania Court
December 6, 2024 – The Commonwealth Court of Pennsylvania has overturned a city ordinance in Philadelphia that prohibited skill games in most local businesses.
These controversial machines, resembling slot machines but requiring a level of skill to win, offer cash payouts. However, they remain unregulated, untaxed, and lack responsible gaming safeguards. The machines have faced long-standing criticism from Pennsylvania’s casino operators and the broader gaming industry.
Legal Victory for Skill Game Operators
The decision follows a March ordinance enacted by Philadelphia City Council and signed by Mayor Cherelle Parker, which sought to ban skill games. The measure was challenged by G&B Amusements and Harry Sandhu, a local gas station owner who operated the machines. While a lower court initially upheld the ban, the Commonwealth Court reversed that ruling.
Judge Patricia A. McCullough noted that under current state laws, skill games located outside regulated casinos are not considered illegal or subject to gambling regulations. In her ruling, McCullough stated, “As the law stands, POM games located outside regulated facilities are neither illegal nor regulated.”
This case is one of several pending before the Pennsylvania Supreme Court. If Philadelphia chooses to appeal, the matter could join those awaiting resolution in the state’s highest court.
Industry Reactions
Pace-O-Matic (POM), a Georgia-based company behind the “Pennsylvania Skill” games, celebrated the ruling. Mike Barley, a spokesperson for POM, expressed satisfaction with the decision, stating:
“Pace-O-Matic is pleased, though not surprised, that the Commonwealth Court has found the Philadelphia City Council’s ban unlawful. This is a victory for small businesses in Philadelphia that rely on the additional revenue generated by Pennsylvania Skill games. The ban only further harmed businesses already struggling in today’s economic climate.”
Broader Implications for Skill Game Regulations
The ruling could influence similar bans in nearby areas, such as Bensalem, home to Pennsylvania’s top-performing Parx Casino. Bensalem’s ban is currently suspended pending appeals in related cases.
The gaming industry has been fighting against the spread of unregulated skill games for years. The American Gaming Association and the Association of Gaming Equipment Manufacturers have jointly opposed the machines, arguing they undermine the regulated gaming market.
In July, Pennsylvania casino operators launched a legal challenge over their tax rate of more than 50% on slot machine revenue, contending that untaxed skill games create an uneven playing field.
