The Case Before the Supreme Court
On November 20, 2025, the Pennsylvania Supreme Court heard oral arguments in a case that could determine the future of skill games in the Commonwealth. At stake: whether Pace-O-Matic's Pennsylvania Skill games are legal "games of skill" or illegal gambling devices.
The case centers on a fundamental question that has divided courts and lawmakers for years: Do these machines operate as games of skill or games of chance?
What the Commonwealth Is Arguing
The Pennsylvania Attorney General's office argues that skill games should be classified as illegal gambling devices. Their key points:
- "A game that looks like a slot machine, and plays like a slot machine, is a slot machine" — from the AG's brief
- The machines' mechanisms and functionality constitute gambling
- The "skill" element is merely cosmetic, with outcomes primarily determined by chance
- The games violate Pennsylvania's gaming law
What Pace-O-Matic Is Arguing
Matthew Haverstick, Pace-O-Matic's attorney, countered with a strong defense:
- The devices comply with decades of legal precedent defining games of skill
- "With skill and patience, a player can win every time" — proven through expert testimony
- Many concerns raised are policy questions, not legal ones
- The Commonwealth Court already ruled the machines are "games of predominant skill"
The Commonwealth Court Victory
Before reaching the Supreme Court, the case was decided at the Commonwealth Court level. Judge Lori Dumas ruled in favor of Pace-O-Matic:
"The POM machines at issue in this case are not slot machines as commonly defined."
The Commonwealth Court found that Pennsylvania Skill games:
- Are "games of predominant skill," not chance
- Allow skilled players to achieve consistent wins
- Operate differently than random-outcome slot machines
The Casino Industry's Stake: $7 Billion Context
It's important to understand the context: Pennsylvania's casino industry just recorded a record-breaking year with nearly $7 billion in revenue. The casino lobby has been vocal about skill games, arguing they represent unfair, unregulated competition.
This financial backdrop adds pressure to the legal proceedings. Skill games generate an estimated $2+ million daily in Pennsylvania, revenue that casinos argue should be taxed and regulated like their operations.
Three Possible Outcomes
Outcome 1: Supreme Court Upholds Commonwealth Court (Best Case)
If the Supreme Court affirms that skill games are legal games of skill:
- Operators can continue and expand operations
- Legislature may still pursue taxation/regulation
- Clear legal framework for the industry
Outcome 2: Supreme Court Overturns (Worst Case)
If the court rules skill games are illegal gambling devices:
- Immediate operational impact likely
- Operators may face compliance deadlines
- Legislative solution would be required to continue
Outcome 3: Remand for Further Review (Middle Ground)
The court could send the case back with specific guidance:
- Extended uncertainty for operators
- Possible technical standards to meet
- Time to prepare for any outcome
What Operators Should Do Now
Regardless of the ruling, smart operators are taking these steps:
- Document Your Operation: Keep records proving your machines are skill-based, not chance-based
- Know Your Machines: Understand exactly how your games work and be prepared to explain the skill component
- Stay Informed: Monitor news for the Supreme Court ruling (expected Q1 2026)
- Prepare for Regulation: If games become regulated, be ready to apply for licenses and pay taxes
- Consult Legal Counsel: Have a gaming attorney review your operation
The Bigger Picture: Regulation vs. Prohibition
Regardless of the court's decision, the ultimate future of skill games in Pennsylvania may come down to the legislature. Multiple bills have been proposed to:
- Tax skill games (generating state revenue)
- Regulate operators (creating a licensing framework)
- Set machine standards (ensuring game integrity)
Many observers believe regulation is more likely than outright prohibition. The state could generate hundreds of millions in tax revenue from skill games—money that's hard to leave on the table.
Need Help Preparing?
Contact us for guidance on positioning your operation for any outcome. We'll help you understand your options and prepare for what's next.
Get Free ConsultationFrequently Asked Questions
When will the Supreme Court rule?
Oral arguments were heard November 20, 2025. Rulings typically come within 3-6 months, so expect a decision in Q1 2026.
Can I still operate skill games while waiting for the ruling?
Yes. The Commonwealth Court ruling in favor of skill games remains in effect pending the Supreme Court's decision. Operations can continue.
What if the Supreme Court rules against skill games?
There would likely be a compliance period. The legislature could also act to legalize and regulate skill games. Consult legal counsel for specific guidance.
Should I wait to start a new operation?
That depends on your risk tolerance. Some operators prefer to establish now while games are operating legally. Others prefer to wait for clarity. There are valid arguments for both approaches.
We'll update this article when the Supreme Court issues its ruling. Subscribe to our newsletter for immediate updates.