Pennsylvania Skill Gaming Bill Introduced to Outlaw the Controversial Machines
Posted on: November 2, 2023, 08:31h.
Last updated on: December 2, 2023, 10:11h.
Pennsylvania skill gaming could soon become a thing of the past should legislation introduced this week in the Harrisburg capital muster enough support.
State Sen. Amanda Cappelletti (D-Delaware) and Rep. Mark Rozzi (D-Berks) have filed legislation that seeks to ban “so-called ‘skill’ slot machines” in the commonwealth. Like several other states, the controversial grey-market games are commonly found in restaurants and bars, grocery stores, gas stations, and retail shops.
Skill games, prominently branded “Pennsylvania Skill” in the Keystone State, task a player to identify a winning payline.
The machines look, sound, and operate similarly to traditional slot machines found inside one of the state’s 17 brick-and-mortar casinos. But unlike the highly regulated casino slot machines that are monitored for fair play and guaranteed payout rates, skill games have no consumer protections.
They also aren’t subject to the 54% effective tax rate placed on gross revenue won by slots. Slot tax revenue helps the state government reduce property taxes and fund the horse racing industry.
Competing Bills
Skill gaming remains a highly contentious and divisive issue in Pennsylvania. Many small businesses say the machines have been lifesavers in dealing with the pandemic and offsetting high inflation.
Pace-O-Matic, a company in Georgia that develops skill gaming software and that works with Pennsylvania-based Miele Manufacturing in producing the “Pennsylvania Skill” titles, says the machines have allowed small businesses to stay in business, hire more workers, and increase pay.
The skill gaming industry has supporters in Harrisburg, too. In May, state Sen. Gene Yaw (R-Lycoming) introduced bipartisan legislation to provide a framework for skill games. Yaw’s Senate Bill 706 would regulate the terminals and require the state to collect 16% of their gross proceeds.
Cappelletti and Rozzi believe, however, the skill games are doing more harm than good.
Despite the illusion that the state has oversight, there are no consumer protection measures, prevention of play by minors, assistance for problem gamblers, money laundering controls, or other regulations protecting Pennsylvanians from these predatory machines,” said Rozzi.
Rozzi and Cappelletti believe the argument that the games don’t constitute gambling because of the skill element at the end of the play carries little weight. They referenced testimony from Pennsylvania Attorney General Michelle Henry’s office on the skill gaming dilemma.
“If a company decided to sell lottery tickets and drew numbers with the same ball machine used by the state lottery that would certainly be an illegal lottery. The nature of the lottery wouldn’t be changed if all losing players were given a chance to try to kick a 70-yard field goal to win back their bet,” Henry’s office reasoned earlier this year in a skill games brief.
“A lottery is still a lottery. So too here. These devices are slot machines,” Henry’s office concluded.
The casino industry argues the skill games are poaching play from their regulated slots and, therefore, reducing the state’s tax benefits. It’s worth noting that the casinos won $2.39 billion on their retail slots in 2022, their second-best year ever behind only 2012 when the machines won $2.47 billion. But there are also many more casinos today than there were in 2012.
Court Considerations
Pennsylvania’s top legal advisor might believe skill games constitute illegal gambling apparatuses, but state courts aren’t yet sold.
Commonwealth Court Judge Patricia McCullough in 2019 ruled that the state’s Gaming Act only regulates games of chance, not games of skill. Therefore, McCullough said, state law enforcement had no legal right to seize skill games on grounds that the devices are in violation of the Gaming Act.
The Pennsylvania Gaming Control Board has reached the opinion that the General Assembly must settle the skill gaming subject. Cappelletti and Rozzi’s bill would amend the Gaming Act to include all “all forms of skill games” and require such devices to only operate inside state-licensed casinos.
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Last Comments ( 3 )
@Todd. Oh my, you are probably always the smartest person in the room wherever Pennsylvania skill machines are operating. The guys down at the American Legion are probably pouring through your rambling comment right now for your guidance while wishing they could be like you someday. You should realize by now that there never seems to be a big enough winning to make even the smallest dream come true. Any gambling venue (take your pick) is like a bank. Sometimes they hold the money and sometimes they let you hold the money. The two most significant sentences in your comment are these: "I've definitely hit at times when I desperately needed it! That $2900 bonus came off $90... It was the last $90 we had!" The definition of insanity is repeating the same action over and over while expecting a different result. Gamblers Anonymous meetings are crowded with folks who think precisely as you have described. They all have one thing in common -- it was their own best thinking that got them there. When you dig down far enough and wind up at the bottom of a very deep hole, stop digging!
There are several small businesses that wouldn't survive without the PA skills machines! I have been involved with Poker machines/Video slot machines since 1995! I've seen thousands of machines in thousands of places! While there are those that don't play fairly. There are many that do! Tony who ended up on the News here in Pittsburgh PA for his machines had some of the most fair machines I've ever seen. His machines were set to max pay out percentage. Over the course of a year I hit several jackpots playing at the local pool hall. The PA skills games are different! The problem with the PA skills games is the player is paying a profit for 1. The store owner. 2. The vendor and 3. Mele who requires only licensed vendors lease and operate the machines! They do not allow vendors or individuals to own machines! Vendors Pay Mele a few for X amount of play! When that play runs out the vendor must pay Mele for a "FILL" which allows the machine to operate again! If a machine doesn't receive a full it will stop playing and say "Out of Plays". Over all there are places and vendors who's machines play great and fairly! There are also places where Jackpots are capped and multiple machines are stung together that play horribly! In all my years experience of playing in WV and PA casinos and playing Video slot/Poker games I can honestly say, the machines in local establishments play significantly more fair then those in casino's! About 3 months ago I hit the Living large 3× bonus on a $4 bet for $2680, 3x $4 bet for 1488, 2x $4 bet for 1488, money bags Gran Premio for $1150 and they payed out a $4,500 living large Jackpot.. They Perrywinkle is currently $6,500. Considering the PA skills games have a max bet of $4 and have a max bonus payout of ×672 your bet I'd say the odds of winning is significantly higher on a PA skills games or a Fusion slot vs the casino and or lottery!! I have never walked into a casino with $80 and won $2900. I've never walked into a casino put in $40 and win $1050 The main difference between a Casino slot and a PA skills slot is. A casino slot works off a Random number generator. Meaning if you don't push the button at the exact right moment you can lose indefinitely! You can literally lose every single day for your entire life! A PA skills and Fusion video slots work off a Money in, Money played and money out algorithm! The Machine WILL PAY OUT when set up correctly!! The machines that have uncapped jackpots play correctly.. They hit the Max pay out bonuses and they hit jackpots fairly regularly when they get regular play! Casinos used to have good slots! Slots with a max bet of 75c or $5 that could hit a progressive from $2500 to $300,000. Casinos today have learned to require players to bet more to win less! There are literally casino slot machines where you can bet $1000 a spin and the max payout is ×100 compared to a max payout of ×672 on a PA skills machine! I don't believe PA skills Should be banned as they have helped me tremendously. Although I'm a little more experienced and understand how they work which greatly increases my odds of winning! I can say with all honesty, I've won as much as I've lost! I can't say that for Casinos! Casinos I'm down $300,000 in my life time and haven't played in them regularly for years! Cause I know my odds of winning are slim to none! PA skills machines I'd say I'm Even or possibly up $1000 or maybe $2000 on the year!! Yes you lose but if you play smart and take calculated risk you greatly increase your odds of winning! I keep track of the numbers on all the jackpots. I keep track of where the numbers are when the jackpots hit! I then know within a day or two when that jackpot will hit if it's getting consistent play! For example.. I know the Living large game where I play hits the Max bonus $4 3x payout for 2680 and then with about $1,500-$2,000 more play it hits the $4 diamond jackpot!! It's not the same everywhere but it is consistent where I play due to the way the machines are set up! 2 uncapped machines tied together. The tricky part is, knowing which one of the 2 will hit the jackpot. It's. Normally the same machine that hits the max bonus payout. I can go on and on and on but the simple truth is! PA skills games and Fusion games help keep local businesses a float! They are a great source of income for many businesses owners! Players also have the option to play or not to play! I don't play at certain places cause I know their machines don't play right! I do think there's some fraud in regards to the machines but on a limited basis by those who don't understand how the machines work. When you cap jackpots low at $2000 or $2500 and string 3 or 4 machines together all sharing that jackpot. They almost never hit!! I've seen the machines at the Sunoco take in hundreds of thousands of dollars and hit 2 or 3 jackpot in a year. I've also seen Machines set up right that hit jackpot weekly! I do believe there needs to be some regulations and I do believe Mele holds a monopoly which is against the law! Overall I'd much rather see Casinos banned then local small businesses lose their income! I know the money that goes into the local businesses gets spent locally! It provides income for local families! It puts food on the table and roofs over the heads of those families! Unlike the Casinos that are owned by major corporations. The money a casino makes doesn't get spent locally! Sure they pay employees and some customers win not to mention pay taxes. But at the same time much of that money goes into the pockets of a select few CEO's and investor's! So while those investors and Corperations make billions. They only benefit a select few individuals! The PA skills machines and fusion skills machines benefit tens of thousands of local families and businesses!! Which in turn allows those businesses to hire employees and pay them more money!! Money that gets spent locally. When players win, that money gets spent locally! Over all the main difference is. I can walk into a casino with $100,000 and hit nothing day in and day out! If I walked into a local shop with$100,000 and a PA skills machine I'm guaranteed to win back at least 50% of my money day in and day out! So which is more fair? Which is better for the local communities? Idk anyone who benefits from the casinos. I know dozens upon dozens of store owners and some vendors who benefit from PA skills games. I my self have benefited from PA. Skills games. I can't tell you how many times I walked in a place with less then $100 and walked out with $500+. I've definitely hit at times when I desperately needed it! That $2900 bonus came off $90... It was the last $90 we had! After buying everything we needed we put $20 in one machine and hit for $90. Took that $90 and switched machines to win $2900.. Show me a casino or lotto game where I can do that!! As for the lottery!! I see people coming in and spending hundreds of dollars on scratchy tickets and quick draw games! I NEVER see them win more then a few bucks! Maybe $500 if they are super lucky! If the lotto is losing players it's due to the fact it's to hard to win!
I have been gaming at sycuan casino in southern california for the pat 15 yrs. Its cl9se to my house so i would go about every day and gamble. Put 1000 dollars in a penny slot machine and it didnt pay out 5 cents. To my disgust i broke the machine and security came escorted me to my car and asked me to leave. Couple yrs passed and i went back and was gambling there everyday again for about 5yrs. Then i finally hit a jackpot for 3200. When i gave the cadono people my id to collect the jackpot security came and told me to leave. I said what about my jackpot. They sais call the gaming commision. So i did and sycuan casino is the gaming commision. Iwas furious. You will not make any money gambling. The whole casino is designed from the wallpaper to the carpet on the floor to keep you in the casino gambling. They robbef my grandma of 5 million dollars in just 5 yrs and wouldntveven let me transfer her points to my gaming card when she passed. Those machines at the indian casinos do not have to pass las vegas rules of fair gaming. There machines dont have to pay u anything.