Pennsylvania’s highest court has ruled that so-called skill machines are unlawful, putting pressure on businesses and nonprofits that have relied on them for years. The decision gives state lawmakers until the fall before law enforcement will need to begin removing the machines.
The ruling lands in the middle of a larger fight over how the machines should be treated. Gov. Josh Shapiro said state leaders need to regulate and tax them, while Berks County District Attorney John Adams said the spread of the machines has become “out of control.”
Lawmakers Face A Narrow Window
Shapiro said he wants Republican and Democratic leaders in the Senate to work together on a package that can clear the chamber and reach his desk. He said, “I think we all knew we need to do something to regulate and tax skill games.”
Adams said the Commonwealth is missing out on revenue because the machines are not taxed and are not regulated. He said, “We are just giving away all that revenue that otherwise could be taxed by the government and could be income for the government.”
Nonprofits Could Still Be A Key Issue
Many of the machines are found in businesses, but they are also used by groups such as Veterans of Foreign Wars posts and fire social halls. Adams said he would support an exception for nonprofit clubs, including fire companies, American Legions, and social clubs.
“Clearly, we’re hoping that the legislature carves out an exception for clubs, and when I use the term ‘clubs,’ I’m talking the nonprofit clubs — the fire companies, the American Legions, the social clubs,” Adams said.
He added that he would have “no issue” with the machines continuing to serve as a revenue source for social clubs and nonprofits. At the same time, he said there are thousands of unregulated machines across the Commonwealth.
The court ruling could reshape how those machines are handled in the coming months. For now, the focus is on whether lawmakers will create a legal and tax framework before enforcement efforts begin in the fall.