Philadelphia Ban on Skill Games Overturned by Courts, Causing Industry Debate
On December 6, the Commonwealth Court of Pennsylvania invalidated a Philadelphia city ordinance that had banned the operation of skill games at most city businesses. These machines, often found in establishments such as gas stations and convenience stores, resemble slot machines but claim to incorporate some level of skill in determining winnings. Despite the difference, they have faced substantial opposition from the state’s regulated casino industry, arguing that the unregulated and untaxed nature of these games undermines fair competition and fails to provide essential protections, such as responsible gaming measures.
The overturning of the ban brings relief to distributors and operators of these games. Gas station owner, Harry Sandhu, along with other small business owners, argued that the games offered much-needed supplemental income, especially during challenging economic times.
While the skill games remain a contentious issue, they continue to operate outside the framework of Pennsylvania’s gaming laws, raising further questions about regulation and enforcement. Many of these establishments see a steady stream of patrons drawn to the machines, often placing them near entertainment offerings such as poker or promotions or traditional lottery services. These games have become an economic fixture for small businesses looking to attract and retain customers.
The Philadelphia City Council’s ban on skill games was initially passed in March 2024 and quickly . The ordinance, however, faced legal challenges from operators who viewed it as both unnecessary and harmful. A common pleas court judge had upheld the ban, rejecting motions to prevent its enforcement.
However, in a decision authored by Commonwealth Court Judge Patricia A. McCullough, it was determined that these games, being located outside regulated casinos, were neither illegal nor subject to the state’s gaming laws as they currently stand. This decision builds on earlier court rulings favoring the games, with law-enforcement seizures of the machines repeatedly overturned.
, a Georgia-based developer of the popular Pennsylvania Skill game series, expressed satisfaction with the ruling. Mike Barley, a spokesperson for POM, noted that the decision is a victory for small businesses that rely on the income these games generate. In a statement, Barley argued that the ban unjustly targeted struggling establishments while failing to address the larger economic challenges they face.
The ruling also puts into question similar bans enacted in other jurisdictions, such as the Philadelphia suburb of Bensalem. Notably, Parx Casino, Pennsylvania’s most successful casino, is located in Bensalem, and it has been vocal in its opposition to unregulated skill games. The ban there is now on hold pending appeals in related cases. The broader conflict over skill games highlights an ongoing struggle between traditional casino operators and businesses hosting these machines.
As the legal battles continue, the Pennsylvania Supreme Court is expected to weigh in on key issues surrounding the games. For casino operators, there are additional grievances: in July, they sued the state over what they see as an unfairly high tax rate on their slot machine revenues, further exacerbating tensions between the two sides. For now, the Commonwealth Court’s ruling marks a temporary victory for skill-game operators and small businesses, though it is likely not the final word on the matter.