Skill Games in Pennsylvania: What’s Next for Local Businesses and State Revenue?

Pennsylvania’s Supreme Court has just dropped a ruling that could change the game for thousands of skill game machines—those digital games you see in corner stores, bars, and clubs. These machines, often called "skill games" because players compete against each other rather than the house, have become a major money-maker for small businesses. For some, like Sprankle’s Neighborhood Market, they’ve been a lifeline, helping the grocery store survive tough times like the pandemic and even fund employee health insurance. But now, state officials wonder if new laws will crush their profits or finally bring order to an unregulated industry. Towns like Gilpin and Ford City have already jumped in, charging fees to machine owners to boost their own budgets. For Gilpin, that’s about $12, 000 a year—roughly 0. 5% of its total revenue. Ford City pulls in a bit more, around $13, 000. These towns are now worried they’ll lose this income if state lawmakers step in. As one local official put it, the worst-case scenario? No action at all, leaving everyone guessing.

Meanwhile, businesses are torn. Some players keep feeding cash into the machines for hours, chasing big wins then losing them just as fast. Others, like store clerk Anna Beeman, admit to being tempted to walk away with their winnings but rarely do. The bigger debate? How much should the state tax these games? Governor Shapiro’s plan suggests a hefty 52% cut of the machines’ earnings, which could bring in $766 million. But is that fair when casinos already pay 55%? Lawmakers have argued for years without progress, and now they’re racing against a June 30 deadline to pass a budget. The Supreme Court’s ruling has lit a fire under them. Lawmakers from both parties now say they’re ready to act, but the question is how. Some, like state Sen. Gene Yaw, want lower taxes to protect small businesses. Others, like the Georgia-based Pace-O-Matic (which makes these machines), warn that heavy taxes could force thousands of businesses to shut down. One professor studying the issue thinks there’s finally enough political will to reach a deal—even if no one gets exactly what they want.

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