On June 15, 2026, the Supreme Court of Pennsylvania issued a landmark decision, holding that skill games are considered slot machines and are governed by Pennsylvania’s Gaming Act and Crimes Code. The Court imposed a 120-day stay from the date of the decision before it takes effect, allowing Pennsylvania businesses time to remove the machines while also allowing Pennsylvania legislators to consider amendments to the Gaming Act and Crimes Code to potentially permit licensing of skill games machines.
Background
In this decision, the Supreme Court reviewed two Commonwealth Court decisions. One decision was POM of Pennsylvania, LLC v. Dep’t of Revenue, which held that unlicensed skill games were not regulated by Pennsylvania’s Gaming Act. The other was In re Three Pennsylvania Skill Amusement Devices, which held that the same devices were not prohibited by Pennsylvania’s criminal gambling laws. Ultimately, the Pennsylvania Supreme Court held that even where an element of “skill” is involved in using these machines, skill games are nonetheless subject to Pennsylvania state gambling regulation. In making the decision, the Court relied on 2017 amendments to the Gaming Act, which expanded the definition of a slot machine to include both “skill slot machines,” where skill is the primary factor affecting the outcome, and “hybrid slot machines,” where both skill and chance affect the outcome.
What Happens Now?
Businesses have until October 13, 2026 to remove the machines from their establishment. The Court stayed the enforcement of its ruling for 120 days, recognizing that many Pennsylvania businesses have utilized skill machines during this legally uncertain period, and allowing them time to wind down the operation of the same and remove them from the business before enforcement begins. Absent a change in legislation, most businesses that have implemented skill machines will be required to cease their use and remove them. Because current legislation does not contemplate slot machine licensing for smaller establishments with a minimal number of machines, many smaller-scale operations such as gas stations, convenience stores, and bars may be forced to discontinue skill game operation.
What Should You Be Doing?
Skill game owners and operators should monitor legislative developments closely, review all agreements related to the skill machines to determine if any contractual liability could result from the inability to use the machines, and plan for the cessation of operation and removal of the skill machines by October 13, 2026.
Establishments licensed by the Pennsylvania Liquor Control Board and subject to the Liquor Code should be especially aware of the deadline, as the Liquor Code prohibits illegal gambling and any use of the skill machines in a licensed establishment after the 120-day deadline could result in an enforcement action against the license.
Landlords to tenants operating skill machines in their businesses should also be aware of the deadline, as many lease provisions prohibit the tenant from violating any state, federal, or local law. Any use of the machines in the business after the 120-day deadline could constitute a breach of the lease, depending on its language.
Attorneys in Barley Snyder’s Liquor Law and Litigation groups will continue to closely monitor any developments on this issue and are available to assist with reviewing any agreements related to skill game machines.
If you have any questions regarding how this decision may impact your business or how to navigate your possession of skill game machines, please reach out to attorneys Katelyn Rohrbaugh Lewis or Curtis Tokach.
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Summer Associate Michael Agadis assisted with the drafting of this alert.
