In a significant legal development, the Commonwealth Court of Pennsylvania recently overturned Philadelphia’s ban on casino-style skill games located in convenience stores and other non-casino venues, which the city had targeted as crime-attracting nuisances. This ruling is hailed as a major win for local businesses that depend on the additional revenue generated by these games.

Background of the ban and its overturn:

The controversy began when Philadelphia’s City Council, led by Councilmember Curtis Jones Jr. and backed by Mayor Cherelle L. Parker, enacted a ban on these games, arguing they attracted crime. However, this ban was challenged by G&B Amusements, a distributor of skill games, and Harry Sandhu, a local gas station owner, leading to a legal battle that concluded with the Commonwealth Court’s decision to stay the lower court’s ruling that had previously upheld the ban.

As The Philadelphia Inquirer reports via MSN, Mike Barley, a spokesperson for Georgia-based Pace-O-Matic, the manufacturer of these gaming consoles, expressed relief at the court’s decision, stating, “This ban did nothing more than harm businesses that are already struggling because of the economy.”

The court’s decision, penned by Judge Patricia A. McCullough, noted that since the games are not present in casinos or racetracks, they do not qualify as “slot machines” under state law nor as illegal gambling devices. This legal distinction is crucial as it recognizes the unique nature of skill games, which require a degree of player interaction, such as memory or matching games, differentiating them from typical gambling slot machines.

Future of skill games in Pennsylvania;

The future of skill games in Pennsylvania now hangs in the balance as the matter escalates to the state Supreme Court. Additionally, Governor Josh Shapiro and state lawmakers are considering legislation that would clearly legalize these games for regulation and taxation purposes, proposing a hefty 42% tax on their sales to bring them in line with other regulated gambling activities.

Matthew H. Haverstick, representing G&B Amusements and Sandhu, commented on the ruling, “We’re gratified that the Court stepped in to prevent real harm to small businesses throughout Philadelphia that rely on the POM [Pace-O-Matic] Game to make ends meet.”

This legal reprieve comes at a crucial time when many Philadelphia businesses are feeling the economic pinch. According to GlobeNewswire, the potential regulation and taxation of skill games could provide a new revenue stream estimated to generate $250 million in state taxes in the first year, according to advocates like Pace-O-Matic. They are pushing for the state legislature to pass a bill that would create regulatory guardrails for these games, supporting small businesses and ensuring fair play.