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Skill Games Are Illegal, PA Court Says. Now What?

The ruling affects an estimated 70,000 machines statewide and leaves lawmakers 120 days to create a tax and licensing system.

  • On Monday, Pennsylvania's Supreme Court ruled skill games are illegal slot machines prohibited outside casinos, granting a 120-day stay to allow lawmakers until October to establish regulatory framework and prevent widespread device seizures.
  • Gov Josh Shapiro proposed a 52% tax rate earlier this year aligning with casino taxation, but Republican and Democratic leadership in the Senate remain divided over fee structures and regulatory approaches.
  • State Sen Gene Yaw proposed a 16% tax rate while Rep Danilo Burgos suggests a $500-a-month flat fee; both industry-backed proposals would cap terminals at 50,000, contrasting Shapiro's 40,000-machine cap.
  • Philadelphia Mayor Cherelle Parker celebrated the ruling, arguing devices perpetuate "high rates of poverty, crime and violence" in vulnerable communities. Chuck Moran of the Pennsylvania Licensed Beverage and Tavern Association noted businesses rely on machine profits.
  • With Pennsylvania facing about $5 billion in budget shortfalls, lawmakers must weigh revenue projections ranging from approximately $300 million to up to $1.2 billion annually. State House Minority Leader Jesse Topper urged integrating skill games into the broader gaming fold rather than chasing revenue alone.
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Axios broke the news in Washington, United States on Tuesday, June 16, 2026.
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