Campaigners are calling on Pennsylvania's authorities to confiscate thousands of gambling machines at establishments across the state after a court ruled that they are defined as slot machines.
The Pennsylvania Commonwealth Court confirmed in a ruling on Wednesday that video game machines manufactured and distributed POM of Pennsylvania, which trades under the names Pace-O-Matic and Savvy Dog Systems, and markets the games using the term ‘Pennsylvania Skill' are considered 'slot machines' under Pennsylvania law.
The court ruling received on the Pennsylvania Skill game only applies to this skill game. No other game is covered under this ruling. Many other machines have come into the PA market stating they are the same as the Pennsylvania Skill game so they are just as legal. That simply is not true. The fact is most of these games are not skill based at. Gambling authorities are there to ensure that the gaming industry is operating correctly. 'Pennsylvania Skill' machines, operated by Georgia-based company Pace-O-Matic argue they are the only court-adjudicated skill game in Pennsylvania because of a 2014 Beaver County court ruling. Players in PA looking to get their game fix have been playing Pennsylvania Skill Games for several years. These skill-based machines are similar to slots, but the machines required a greater level of play and skill. Pennsylvania Skill video game by Pace-O-Matic. Red, White and Blue mechanical slot machine. Many other game manufacturers are pushing so called 'games of skill' that have never been approved by a Pennsylvania court. Just because the game says 'Skill' on the outside it's what's inside that the courts use to determine if it's a gambling device.
POM, which which trades under the names Pace-O-Matic and Savvy Dog Systems, is though to have as many as 5,000 of the machines in operation, in convenience stores, bars, restaurants and other establishments.
The ruling was made as part of an ongoing action filed last year by POM against state authorities. The manufacturer requested that the Department of Revenue and the City of Philadelphia should be instructed to cease seizing or threatening to seize POM equipment and arresting or prosecuting persons in connection with operation of POM games. Gambling horoscope 2016.
In a counterclaim, the Department of Revenue requested that POM be ordered to remove its machines from all Pennsylvania establishments and cease further sale and distribution of its machines within Pennsylvania unless and until POM obtains the proper licenses from the Gaming Control Board.
POM argued that their machines were a 'game of skill' and therefore not a slot machine under Pennsylvania law, and that they were not under the remit of the Gaming Law.
Judge Patricia McCullough found that elements of skill did not mean it could not be considered a slot machine under the terms of the Gaming Act. The court also concluded that POM's games therefore are subject to the state's Crimes Code, and not the Gaming Act, as they do not fall under the Pennsylvania Gaming Control Board's jurisdiction.
Campaigners, including Parx Casino, said the court's ruling means that these machines are now subject to forfeiture as under the Pennsylvania Crimes Code, Title 18 Section 5513, the manufacture, set up, sale, lease, or ownership of a slot machine for gambling purposes is illegal.
'With this decision, we urge the Pennsylvania State Police, the Office of Attorney General, police departments and District Attorneys across the state to enforce Pennsylvania law to halt the proliferation of thousands of illegal Pennsylvania Skill slot machines now,' said Parx Casino's vice president of legal and chief counsel Thomas C. Bonner.
'We know that illegal slot machines and full-blown illegal casinos are popping up all over Pennsylvania. We know that minors are gambling, and we know that the state lottery is losing tens of millions of dollars that should be going to our seniors because of these illegal machines. It's time to confiscate these machines and put these illegal casinos out of business.'
In ruling the POM machines were not under the jurisdiction of the Gaming Act, the court denied the Department of Revenue's counterclaim and application for summary relief.
Judge McCullough said: 'Because the plain language of the Gaming Act indicates that the General Assembly did not intend for the Gaming Act to regulate unlicensed slot machines which fall outside the ambit of the licensed facilities clearly delineated by the Gaming Act, and/or supplant the Crimes Code's regulation of the same, we conclude that the POM game is not subject to the Gaming Act.
'We therefore deny the Department's application for summary relief in the nature of a motion for a judgment on the pleadings.'
The Pennsylvania Lottery has been a vocal critic of the machines, estimating that their existence has cannibalised scratchcard sales by as much as $185.2m. A bill has also been filed, by Senator Tommy Tomlinson, to have the machines declared a form of illegal gambling. This bill, introduced in July, has been referred to the Senate Judiciary Committee.
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Pa Skill Machines Online
The Pennsylvania Commonwealth Court confirmed in a ruling on Nov. 20 that video game machines manufactured and distributed by the company Pace-O-Matic (POM) under the name 'Pennsylvania Skill' are considered slot machines under Pennsylvania law. However, Judge Patricia McCullough did not state that POM was in violation of the Gaming Act. Per her ruling, the law does not apply to unlicensed slot machines.
This is the latest decision in a lengthy battle within the Commonwealth over whether or not these skill-based games are legal.
POM had argued that their machines were a 'game of skill' and therefore not a slot machine under PA law. The Commonwealth of Pennsylvania, Department of Revenue, and the City of Philadelphia are defendants in the lawsuit.
Surprisingly. Pace-O-Matic lawyer Matt Haverstick of Philadelphia-based law firm Kleinbard said they were 'pleased' with the ruling. He added:
'We expect to have a trial or hearing just like in Beaver County where we demonstrate under the Crimes Code we are predominately skill. We are prepared to do it and look forward to putting on the case and are confident on how it is going to turn out. We have a legal machine and at least one court has upheld we are a legal machine. We expect soon we're going get a bigger broader ruling that we are a legal machine.'
Seizure of skill game machines at heart of court case
On June, 8 2018, POM filed a petition for review seeking a judgment and injunctive relief. POM says that from March 2017 until June 2018, the City of Philadelphia conducted 11 separate seizures of machines. City law enforcement also arrested employees and seized funds at each location. POM alleges that the City's seizures of the POM games was illegal. Additionally, POM contended the seizures interfered with the Department's mission to fairly, efficiently, and accurately administer the tax laws and other revenue programs of the Commonwealth.
Parx calls to confiscate
Parx, which was not listed as a defendant in the case, called the ruling 'a blow to illegal gambling and a victory for families and communities in Pennsylvania.'
Pennsylvania Skills Machine Tricks
However, Judge McCullough did not refer to Pennsylvania Skill games as 'illegal gaming devices.'
Parx asserts that the Commonwealth Court's clarification that 'Pennsylvania Skill' games are 'slot machines' under PA law provides clear legal jurisdiction for law enforcement at the state and local levels to confiscate the machines and prosecute those responsible for manufacturing, distributing, leasing or owning the machines.
Thomas C. Bonner, Chief Counsel for Parx Casino commented:
'We know that illegal slot machines and full-blown illegal casinos are popping up all over Pennsylvania. Angel vs demons game. We know that minors are gambling, and we know that the state Lottery is losing tens of millions of dollars that should be going to our seniors because of these illegal machines. It's time to confiscate these machines and put these illegal casinos out of business.'
A day after releasing the press release, Parx sent out a notice to disregard the news release.
Haverstick responded to Parx now-retracted press release with:
'We were puzzled when we saw Parx, a non-party, jump into the fray and then mangle the opinion. Parx embarrassed themselves. They are not doing any favor to the thousands of Pennsylvanians, the business owners who rely on it for revenue, the people who manufacture the games, or the people who play for entertainment. These are legal games.'
What's next?
Pennsylvania Skill machines are usually found at bars, social clubs, and corner stores. Don't expect them to immediately disappear overnight.
A Beaver County court deemed Pennsylvania Skill Games legal in a 2014 decision. Since then, there have been a number of House Gaming Oversight Committee Public Hearings debating their legality. The Pennsylvania Lottery also waged a very public campaign to push to explicitly outlaw the machines with new legislation.
Here's what Haverstick said is next for POM:
'We expect to have a trial or hearing just like in Beaver County where we demonstrate under the Crimes Code we are predominate skill. We are prepared to do it and look forward to putting on the case and are confident on how it is going to turn out. We have a legal machine and at least one court has upheld we are a legal machine. We expect soon we're going get a bigger broader ruling that we are a legal machine.'
If the past is any indication, there will be more days in court for POM who will fight to keep their machines operating as usual.
