David Peck, a 46-year-old resident of Millheim, Pennsylvania, has found himself caught in the grip of so-called "skill games," electronic kiosks that resemble slot machines but are marketed as games of skill. With about $8 in his pocket on a recent Friday, Peck entered the sole gas station and convenience store in town, converted his cash into points, and began playing a game called "Lucky Leprechaun," which involves matching icons like four-leaf clovers and leprechauns in a tic-tac-toe pattern to accumulate points.
Statewide, Pennsylvania hosts an estimated 70,000 to 100,000 such machines, placed in varied locations including convenience stores, bars, grocery outlets, and even laundromats. These machines generate significant revenue for store owners and distributors, often constituting a crucial portion of their income. At the lawn and gardening shop This Is It in Millheim, for example, skill games account for roughly 25 to 30 percent of business revenue, according to co-owner Jason Tickner.
While proponents, including some small business owners and industry representatives, describe these devices as harmless entertainment that supplements existing services, the games have drawn increasing scrutiny from lawmakers and advocacy groups. Critics argue that the "skill" aspect is largely a legal loophole that masks the machines' resemblance to gambling devices. Peck, who has battled multiple addictions including drugs and alcohol, describes the games as his latest form of dependency, saying they offer an escape from anxiety and painful memories. Despite previously earning up to $375,000 annually, he reported losing $60,000 to the skill games over a six-month period and having no savings.
The Pennsylvania Supreme Court ruled in June that these machines qualify as gambling devices if gambling is "partly" involved, a decision that effectively rendered skill games illegal starting in October unless legislators enact new regulations. Past attempts by the state legislature to regulate or ban the games have been unsuccessful, even amid concerns over public safety. In 2020, a store clerk in Hazleton was fatally shot during a robbery targeting cash from skill game machines, intensifying calls for regulation.
The industry behind these games was pioneered in Pennsylvania by the company Pace-O-Matic, which introduced its machines in 2013. State police initially seized the kiosks, leading to legal battles that resulted in court rulings affirming the games’ classification as skill-based in 2014 and again in 2023. However, these rulings have done little to quell controversy as public debate continues over the devices’ social impact.
Jennifer Gower of the Scranton area offers another perspective on gambling addiction in Pennsylvania. Though initially a casual participant in lottery and casino games, the isolation of the COVID-19 pandemic accelerated her gambling losses into the tens of thousands of dollars. She eventually sought help through the state’s self-exclusion program and counseling services. Her experience underscores the wider challenges of problem gambling in the state, where counseling organizations report approximately 100 calls yearly related to difficulties with skill games.
Industry representatives emphasize responsible play and compare skill games to traditional forms of entertainment like pool or arcade games. Doug Sprankle, president of the Pennsylvania Taverns and Players Association, stated that skill games are meant to complement existing business activities and keep establishments viable.
As Pennsylvania faces the implementation of the court’s ruling, lawmakers are poised to decide whether and how to regulate these machines going forward. The debate weighs concerns about addiction and public safety against the economic benefits these games provide to small businesses across the state.