Proponents of Pace-O-Matic Skill games say a recent Commonwealth Court ruling enables the industry to continue to support small businesses and social halls.

The unanimous and definitive ruling by the court stated Pennsylvania Skill, powered by Pace-O-Matic, is a legal game of skill, said Michael Barley, public affairs officer with Pace-O-Matic.

“Our games generated millions of dollars in revenue for businesses and clubs in Pennsylvania last year,” he said.

The games are a popular form of entertainment but require money to play. They operate a lot like the tic-tac-toe game, with the winners needing to make decisions to get three in a row, wild cards and free spins. The user places how much he or she wants to wager by pressing a button.

In the case, originally brought forth in Dauphin County, the Commonwealth Court ruled that the Pace-O-Matic (POM) game is a game of predominant skill, not a game of chance and these games are not slot machines and not illegal, Barley said.

“This is a major victory for Pennsylvania Skill, but it’s equally a victory for our operators and the thousands of small businesses, volunteer fire companies and fraternal clubs who have come to depend on the revenue our games provide,” said Paul Goldean, president and CEO of Pace-O-Matic. “This is also a win for many players across the commonwealth who enjoy skill games as a popular entertainment option. Our games have always been legal and this ruling proves that once and for all.”

In the ruling, the Commonwealth Court states explicitly that “POM machines are not slot machines” and goes on to reject the commonwealth’s intentionally broad definition of a slot machine to include games of predominant skill, going so far as to state that “such an interpretation is inappropriate.”

The court agrees with the appellees that “substantial evidence supports the trial court’s legal conclusion that skill predominates over chance” in the POM game. The court also states in the ruling that the commonwealth’s argument that the game’s skill-based elements are secondary, insignificant, or hidden is “factually untrue.”

The court therefore concludes that “POM machines are not gambling devices” and “therefore, do not constitute derivative contraband” and that “these electronic games are not illegal.”

Lastly, the court notes that “the commonwealth was aware of adverse legal authority [referring to the Pinnacle case in which the POM game was determined a game of skill], it was required to cite and distinguish it.” Yet the commonwealth omitted it. The court goes on to state that they “caution the commonwealth that the Pennsylvania Rules of Professional Conduct require candor toward the tribunal and, specifically, the disclosure of directly adverse authority.

“We have won every Pennsylvania county court decision that has questioned the legality of our games, and this ruling should put an end to any discussion on the matter,” Barley said.

Additionally, the court took note and objected to the continued actions of state actors who have purposefully ignored the law and court decisions, continually and purposefully misrepresented how our games operate and put their fingers down on the scales of justice in a reckless attempt to have our skill games found illegal. Largely at the behest of the Pennsylvania Gaming Control Board and a handful of casinos, led by Parx Casino, Barley said.

Thankfully, the court saw through those actions, analyzed the facts and ruled appropriately our games are legal games of skill, Barley added.

Earlier this month, the Commonwealth Court of Pennsylvania also affirmed the return of several skill game terminals by the Court of Common Pleas of Monroe County — in doing so, also ruling the POM game a legal game of skill.

Appeal always an option

The Supreme Court can either take up the appeal or not and it could also delay any appeal decision for years, Barley said.

There should be no doubt that the court’s definitive ruling puts the industry in a better position to encourage existing efforts to pass legislation to regulate and tax the machines, he said.

“It is now in the Legislature’s lap,” he said.

Such legislation would be expected to reduce illegal, unlicensed games. Legislation is always subject to change and any legislation to pass into law would need to be signed by the governor.

Legislation hoped to pass into law

Related to the legislative efforts, Barley mentioned state Senator Gene Yaw, R-Loyalsock Township, who has sponsored legislation along with state Rep. Danilo Burgos, sponsor in the House of the skill video game legislation.

Legislation sponsored by Yaw would establish a taxing structure and regulatory framework for skill video games in the state, he said.

Under the proposed legislation, which includes a valid I.D. requirement to play and a limit on the number of machines per establishment, all games will be required to be connected to a terminal collection and control system that allows the commonwealth to monitor all transactions and ensure that all taxes are accrued and paid.

Additionally, the legislation will strengthen penalties for those who operate unlicensed and illegal games and gambling devices, Barley said.

“Now that this ruling is in place, I hope we can focus on the more pressing matter of regulating and taxing skill games,” Barley said. “We are urging the General Assembly to pass reasonable legislation, not only to support the small businesses and organizations who benefit from skill games but to generate tax revenue for the state while also giving law enforcement the framework they need to tackle illegal gambling. It’s a win-win for the commonwealth.”