Pennsylvania skill games face seizure from 14 October, State Police warn

Businesses in Pennsylvania that still host skill games can face seizure of the machines and criminal prosecution from 14 October, according to the Pennsylvania State Police (PSP).

What happened

According to the PSP, the Pennsylvania Supreme Court ruled on 15 June 2026 that skill game devices fall within the Gaming Act's definition of slot machines.

In a notice, the PSP said that legal possession or operation of slot machines or video gaming terminals approved by the Pennsylvania Gaming Control Board is limited to licensed casinos and licensed truck stop establishments that qualify. The PSP said all skill game devices elsewhere are unlawful and that, from 14 October 2026, venues holding them face criminal prosecution and can have the machines seized immediately.

The PSP said enforcement may include seizing and forfeiting machines, associated equipment and money linked to their operation, and filing criminal charges where it considers them appropriate. It added that switching off or unplugging a machine is not enough to comply, and recommended that businesses discuss removal with the distributors or vendors that may own the equipment, including ticket redemption terminals.

CDC Gaming Reports also gathered reactions from the industry:

• Pace-O-Matic, a skill-game software and terminal developer, said the loss of skill-game revenue will have real and immediate consequences for nonprofits and small businesses.
• Joe Rocca, owner of Pittsburgh distributor Rite Touch Distribution, told CDC Gaming that leasing terminals to customers or selling them on to distributors made up 99% of his business. He expects to be left with 1,000 terminals once removals are complete.
• Jeff Morris of Penn Entertainment said the company was pleased to see the end of an industry that, in his view, had for years ignored responsible-gaming protocols and consumer protections and provided zero tax revenue to the Commonwealth.

CDC Gaming also cited the Independent Fiscal Office, which estimates that a single terminal can bring in $47,000 a year. The Pennsylvania Lottery, which has more than 9,900 retailers, said through a spokeswoman that it expects more interest in its products from players and retailers as machines leave the market.

Why it matters

Suppliers, distributors and operators with exposure to Pennsylvania skill-game placements are likely to need to check who owns each machine, where it sits and whether removal is complete, because the PSP says enforcement can reach the machines, associated equipment and related money. Lease and revenue-share arrangements with host venues are likely to need review.

The ruling could also affect competition, and Penn Entertainment's comments show how one licensed company is framing the end of the market. Venues that lose skill-game income may turn to pull-tab machines or lottery retail, as CDC Gaming noted, which could shift where small-venue gambling spend goes.

For suppliers, the case shows how a court interpretation can end a product category without new legislation. CDC Gaming reports that Pace-O-Matic also operates in other states, so a supplier's exposure to one state's rules could affect its wider business planning.

What's next

House Bill 2213 and Senate Bill 1079 propose a $500 monthly fee for each skill-game terminal and a statewide cap of 50,000, according to CDC Gaming.

Pace-O-Matic said it remains hopeful lawmakers will reach a legislative solution.