Skill Games: 120-Day Compliance Deadline Likely to Be Missed

UPDATE, October 27 — Skill Games: Deadline Passes, Enforcement Begins

What happened:
The 120-day safe harbor expired October 13 with no legislative framework in place, after the Pennsylvania Supreme Court denied a last-minute request to extend the deadline on October 9. State Police began enforcement October 14: skill game machines outside licensed casinos and qualifying truck stops are now subject to seizure, and establishments that possess, operate, or maintain them face criminal prosecution and, for liquor licensees, license penalties.

Why it matters for Pennsylvania nonprofits:
VFWs, American Legions, volunteer fire companies, and fraternal and social clubs that hosted machines have lost that revenue and face legal exposure if machines remain on site.

What nonprofits can do:
If a vendor or distributor refuses to remove a machine, State Police advise contacting the State Police or, for liquor licensees, the Bureau of Liquor Control Enforcement. State Police have posted compliance guidance on their skill games resource page (summary here). Consult legal counsel with questions.

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UPDATE October 13, — Skill Games: Attorney General Warns Businesses to Remove Machines

What happened:
Attorney General Dave Sunday urged business owners to remove skill game machines before the 120-day safe harbor expires October 13. After that, locations housing the machines face criminal prosecution and machine seizures. Unplugging or turning off a machine does not satisfy the law. State Police have said enforcement may begin October 14; only licensed casinos and qualifying truck stops may operate the devices.

Pending proposals:
No regulatory framework has advanced. SB 1079 (Sens. Gene Yaw, R-Lycoming, and Anthony H. Williams, D-Philadelphia) would impose a $500 monthly fee per terminal and cap machines statewide at 50,000, generating an estimated $300 million a year. Reps. Danilo Burgos (D-Philadelphia) and Jonathan Fritz (R-Wayne) have similar House legislation. Leaders in each chamber continue to point to the other for the lack of votes.

What nonprofits can do:
Organizations hosting machines should review the Attorney General’s guidance and consult legal counsel.

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UPDATE, September 30 — Skill Games: October 13 Deadline, No Deal Yet

What happened:
Lawmakers returned to Harrisburg on September 28 with no agreement on skill games and roughly two weeks left before the October 13 deadline. In June, the Pennsylvania Supreme Court ruled that skill games are slot machines under state law, giving the legislature 120 days to create a legal and regulatory framework. Without one, machines are subject to seizure. Senate Majority Leader Joe Pittman has placed the issue near the top of the Senate’s fall agenda.

The competing proposals:

• HB 2213 (Rep. Danilo Burgos, D-Philadelphia) and SB 1079 (Sen. Gene Yaw, R-Lycoming) are bipartisan bills to legalize and regulate the machines.
• HB 2801 and HB 2802 (Rep. Russ Diamond, R-Lebanon) would regulate skill games and tax them at 20%.
• Rep. Brad Roae (R-Crawford) is seeking co-sponsors for a bill to push the deadline back six months, arguing a full deal on legality, tax rate, regulation, and spending is unlikely by October 13.

Talks this summer broke down largely over how the revenue would be spent, with disagreement over dedicating it to public transit versus the General Fund.

Why it matters for nonprofits:
Many of the roughly 70,000 machines statewide sit in VFWs, American Legions, volunteer fire companies, and fraternal clubs — some of them nonprofits that depend on that revenue. Operators have warned some host organizations could cut staff, reduce community support, or close. Skill games revenue was also one of the governor’s proposed budget solutions, so the outcome affects the state’s longer-term fiscal picture for human services funding.

Where things stand:
The Senate has about six session days before the deadline. A deal, a deadline extension, or no action are all possible. Nonprofits that host machines should talk with their operators now about what happens to machines, and revenue, after October 13. PANO will share an update once the deadline passes.

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What happened: State Rep. Kerry Benninghoff said the legislature likely won’t finalize skill games regulation within the 120-day window set by the state Supreme Court’s ruling that the machines are subject to gambling law — calling the deadline “somewhat arbitrary.” Missing it would put roughly 70,000 machines statewide at risk of seizure. Separately, the same ruling’s reasoning could extend beyond convenience-store machines to arcade games like Skee-Ball and claw machines, per the majority opinion — though the Attorney General’s office says enforcement will focus on machines involving financial gain, not neighborhood arcades. (A recent F&M poll found over 70% of PA voters support taxing skill games.) 

Why it matters for Pennsylvania nonprofits: Many of these machines operate in VFWs, fire companies, and fraternal or social clubs — some of which are nonprofits that rely on this revenue. Organizations hosting skill games machines should watch closely for a legislative fix, since inaction after the window closes could mean losing access to the machines entirely. 

Where things stand: New measures, including revenue fees, are reportedly in development, but no timeline has been set.