Pennsylvania Skill Games Operator to Shut Down Devices During Collection

Miele Manufacturing, one of the largest providers of skill-game machines in Pennsylvania, says it will stop operating those machines during the next collection period as the state approaches a key enforcement deadline. Pennsylvania AG Warns Shutting Down Machines Is Not Enough The company sells Pennsylvania Skill cabinets throughout the state and has a partnership with Pace-O-Matic (POM) to provide the games software. Miele also uses affiliated businesses to run machines, including Miele Amusements and Pennsylvania Amusements. According to information sent to host businesses this week, the company’s operating divisions intend to turn off the machines the next time they take money out of locations. It was unclear whether the devices would also be removed from the businesses where they are installed. The shutdown is scheduled to take place before October 14, when Pennsylvania officials are expected to begin enforcing the state Supreme Court’s decision on skill games. The machines have sprung up in convenience stores, bars, restaurants, and small businesses. However, turning off the devices may not be enough to satisfy the state’s requirements. Pennsylvania Attorney General Dave Sunday recently warned business owners that the machines could still lead to enforcement action even if they are unplugged or disabled. He called on affected businesses to contact their distributors and have the machines taken away. The enforcement date could bring actions like seizures of machines and money, forfeiture proceedings, and criminal charges against businesses that keep the devices on. Skill Game Shutdown Threatens Extra Income for Pennsylvania Small Businesses The problem stems from a June ruling by the Pennsylvania Supreme Court. The justices said the machines fit the state’s legal definition of slot machines, although they have features that allow players to affect the results. Skill game operators had argued their products were distinct from traditional gambling machines due to the presence of player skill. The court dismissed that difference, citing changes to Pennsylvania’s Gaming Act in 2017. The ruling came after years of uncertainty about the machines which have been installed in thousands of businesses around Pennsylvania. There are estimated to be about 70,000 devices in operation. A report on September 14 also said Pennsylvania businesses were getting ready to take the machines out before the enforcement deadline. State police have urged businesses to reach out to distributors directly sooner to ensure the devices are fully removed. The Supreme Court had initially provided a 120-day window before its decision came into effect. That window gave state lawmakers the chance to consider legislation that could create a formal regulatory system for the industry. The Pennsylvania General Assembly is still weighing potential legislation. Proposals have ranged from restrictions on the number of machines permitted in single businesses to taxing their profits. The legislative outcome is still significant for operators and small businesses, as skill games have given extra income to many locations. However, for now, the court ruling means that once enforcement begins, unlicensed businesses will not be able to keep the machines running. Hence, Miele’s planned shutdown could be the first step in removing a large portion of the machinery from businesses in Pennsylvania.