Pennsylvania State Police report 99.4% compliance in skill game removal

The Pennsylvania State Police (PSP) announced that 99.4% of the establishments it has visited since 14 October no longer have skill games. The force also warned that devices marketed as sweepstakes machines could lead to criminal charges for distributors and host venues.

For operators, suppliers and affiliates with Pennsylvania exposure, the update suggests that police are looking beyond traditional skill games and at gambling-style devices outside licensed premises.

What happened

In its release, PSP said officers had visited 12,202 establishments from 14 October. Of those, 12,134 no longer had skill games, which the force put at a 99.4% compliance rate. Police took 14 machines and $1,913 over the period, as CDC Gaming Reports also noted.

The enforcement push follows a ruling by the Pennsylvania Supreme Court. PSP said the court made clear that such devices are only permissible where the General Assembly has expressly authorized gambling, meaning premises licensed by the Pennsylvania Gaming Control Board.

PSP said some manufacturers and operators have placed signs on devices claiming they are legal because they take no cash and resemble a sweepstakes rather than a slot machine. The force said none of them sought its view on the legality of those devices before installing them in Pennsylvania businesses. Distributors and host establishments could face charges for unlawful gambling and related offences if the machines stay in operation, PSP said.

The force set out its reading of the law in some detail:

• It said it is illegal to possess, maintain or allow the operation of slot machines or devices that let players gamble, whether the player pays with currency, cards, mobile payments or cash apps.
• It said games offering free credits are illegal where players can continue using their own money.
• It cited the Crimes Code (18 Pa. C.S. § 5513), and said that includes devices where players scan QR codes or download apps for simulated slot or casino-style play.
• It said the Supreme Court decision reaches games based on chance, skill or a mix of both, whether or not they rely on a random number generator or a finite pool of outcomes.

PSP also said that businesses without a licence from the Pennsylvania Gaming Control Board bear responsibility under the Gaming Act if they set up slot machines, run table games or conduct interactive gaming.

Why it matters

Operators, suppliers and their partners should check whether any product placed in Pennsylvania venues outside Gaming Control Board-licensed premises falls within PSP's description of a slot machine or gambling device. PSP states that the payment method does not decide the question, so a no-cash or alternative-payment design is unlikely to settle the issue on its own with the force.

Suppliers and distributors face the most direct exposure. PSP said it will pursue criminal charges against any manufacturer or distributor that keeps permitting operation of such devices. Companies that supply, host or service sweepstakes-style terminals in the state could need to review their Pennsylvania placements and contracts.

Affiliates and media buyers who promote or take revenue from brands tied to skill-game or sweepstakes-style products should check whether those products touch Pennsylvania venues. PSP's reading, covering QR codes and phone apps linked to terminals in businesses, could also matter for any hybrid venue-and-app model.

The figures suggest the court ruling has been followed by broad field enforcement within weeks. Licensed operators may see the same approach used for other products PSP considers to be outside the Gaming Act.

What's next

PSP said its investigations into locations that have not voluntarily removed skill games are active and ongoing. The force said enforcement actions may include seizing devices, related equipment and proceeds and forfeiting them, as well as filing criminal charges where it considers them warranted.