Slot Machines Legal In Pennsylvania

  

Consider the innocuously labeled SB 1256 the opening salvo of the Pennsylvania budget battle: Part Two.

When the Pennsylvania Senate left Harrisburg for their home districts on Sept. 22, lots of unfinished business remained. Chiefly, that’s passing a state budget for the rest of the fiscal year after having approved a stopgap spending measure at the end of May covering only part of the year.

Video gaming is now legal in Pennsylvania bars. “While Pennsylvania Skill games, powered by Pace-O-Matic, have been adjudicated legal and require skill, a VGT is a slot machine which directly competes with the games already offered in casinos. Slot Machine Private Ownership in Pennsylvania It is legal to own a slot machine privately in the state of Pennsylvania if it is 25 years old or older. PNC Park in Pittsburgh Pennsylvania Slot Machine Casino Gambling in 2020 Gaming Control Board in Pennsylvania.

So brace yourselves for a dark and bumpy ride.

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The state’s second budget season commences on Oct. 5. The biggest and heaviest lift is passing a budget during November, likely not until sometime after Election Day on Nov. 3. And a reminder: PA has a long, strange tradition of sometimes bizarre last-minute deal-making on the eve of passing a budget.

Slot machines are legal at Pennsylvania’s licensed casinos and have been a part of the legal casino gambling scene here since the start. In fact, the state’s initial casino legislation, passed in 2004, allowed racetracks and new stand-alone casinos and resort casinos to run slots only, making them the only legal casino games in town. POM had argued that their machines were a 'game of skill' and therefore not a slot machine under Pennsylvania law. The manufacture, set up, sale, lease, or ownership of a 'slot machine' for gambling purposes is illegal under the Pennsylvania Crime Code, Title 18 Section 5513, and these machines are subject to forfeiture under the law.

As the Pennsylvania Capital Star put it in a recent opinion piece:

“A fall debate on the commonwealth’s budget is going to be painful for everyone in Pennsylvania. Relations between the Administration and the Republican majority in the General Assembly are frayed, making negotiations difficult.”

Senate holds a hearing on VGTs and skill games bill Oct. 6

As part of the windup, the Senate goes back to work in the capital on Oct. 5. And while it’s not strictly a budget measure, there’s a much-anticipated hearing the next day on an important bill, Senate Bill 1256.

That’s pet legislation of Sen. Jake Corman, the Republican majority leader (pictured, lead image). The 29-page legislative proposal focuses on expanding video gaming terminals, or VGTs, and expressly legalizing games of skill.

But the bill assigns no taxation level to the machines it seeks to allow and does not state how many devices might be allowed.

SB 1256 gets first hearing in public after a lull

Through July, Republicans secretly discussed the bill behind closed doors. But it failed to gain traction. Despite the shroud of backroom secrecy, Spotlight PA scrutinized some of the machinations.

Corman had characterized the bill to Spotlight as a way to control and license the proliferation of illegal gambling machines in PA. He claimed expanding VGTs’ presence was somehow a matter of fairness, given the bill’s aim to widely allow skill games.

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He also said the move would raise revenues but never named an amount.

Corman now has a casino coming to his district

Since Corman spoke to Spotlight in late June, there’s been one significant change and two additional developments.

First, a mini-casino license was auctioned off in his Centre County district for $7.5 million to Philadelphia real estate development and financial consultant Ira Lubert.

Next, Spotlight has written more recently about Corman and a so-called “dark money” fund overseen by a lobbyist he’s connected with. And then there was also his hiring of a lobbyist with deep ties to out-of-state VGT makers to lead his staff.

Meanwhile, the VGT and skills games bill has lain dormant since July.

That’s about to change.

Senator from Philly suburbs plans a hearing

Republican state Senator Thomas Killion‘s Community, Economic and Recreational Development Committee is holding a hearing on Bill 1256 beginning at 10 a.m. on Oct. 6.

Machines

Killion, who represents part of the Philadelphia suburbs in Delaware and Chester counties, is running for re-election in November. He did not respond to a request for comment. Neither did the committee’s co-chair, state Sen. Lindsey M. Williams, a Democrat who represents the Pittsburgh area.

Casinos and POM hate SB 1256

Proving that politics makes for strange bedfellows, all 13 PA casinos, which include the yet-to-open Live! properties, have opposed the Corman bill, but then so has Pace-O-Matic, the PA company that makes and distributes Pennsylvania Skills games.

The industry letter went out on Sept. 17 and was signed by the leaders of casino properties employing more than 20,000 Pennsylvanians. The casinos are:

  • Mohegan Sun Pocono
  • Harrah’s Philadelphia Casino and Racetrack
  • Meadows Racetrack and Casino
  • Hollywood Casino at Penn National Race Course
  • Valley Forge Casino Resort
  • Rivers Casinos in Pittsburgh and Philadelphia
  • Parx Casino
  • Presque Isle Downs & Casino
  • Mount Airy Casino Resort
  • Wind Creek Bethlehem, Lady Luck Casino Nemacolin
  • Live!

Casinos’ position on SB 1256

In part, the casinos’ letter opposing the bill reads:

“Expanding VGTs to liquor licensees would result in as many as 85,000 gambling machines being added to the state — which is more than three times the current number of slot machines in all of Pennsylvania’s casinos combined. Similarly, legalizing (and thereby rewarding) the currently illegal skill game slot machines that are prevalent in bars, convenience stores, gas stations and other businesses would cause tremendous damage to our industry and the nearly 20,000 Pennsylvanians we are proud to employ, as well as negatively impact the Pennsylvania Lottery and the public interest. SB 1256 does exactly that.”

The letter also points out the recent economic losses the licensed casino industry — and the state — are still struggling with:

“Collectively, casinos suffered approximately $968.8 million in revenue losses from slot machines and table games (due to the virus shutdowns), $424.2 million of which would have been payable to the Commonwealth.”

Casinos reference “good faith” by the state

Additionally, the letter claims:

  • “Stores, golf courses, microbreweries and a variety of other businesses could all potentially become miniature casinos.”
  • “This bill would come at the expense of the Commonwealth in the form of lost tax revenue, gaming industry job losses and lost local share revenue.”

The letter concludes by pointing out the Commonwealth is a better than 50% stakeholder in the casino industry via fees and tax revenue, and finally, that the casino license holders invested in PA with the state “a good-faith partner.”

Legislative leaders mum on SB 1256

All members of the legislature got the letter.

But the letter addressed Corman in particular, as well as:

  • Senate President Pro Tempore Joseph Scarnati III
  • Senate Democratic Leader Jay Costa
  • Assembly Speaker Bryan Cutler
  • House Majority Leader Kerry A. Benninghoff
  • House Democratic Leader Frank Dermody

PlayPennsylvania sought comments from all of the legislative leaders. None responded.

But a spokeswoman for Scarnati referred the request back to Corman. “Any questions regarding VGTs and skill games would be best directed at Senate Majority Leader Corman’s office,” she said.

Scarnati is retiring at the end of the session in December. Corman is seen as his likeliest successor should the Republicans maintain their majority in the PA Senate.

Wolf also stays quiet

Governor Tom Wolf, a Democrat who is frequently at odds with the Republican-led Legislature, has expressed quiet opposition to expanding gambling further as contemplated in the bill.

His spokesperson did not respond to a request for comment.

Pennsylvania Skills game distributor has its say

Pace-O-Matic of PA, or POM, hates the bill.

The Williamsport company, which distributes Pennsylvania Skills machines, has been taking its opposition to rival skill games and VGTs to the streets. POM is outing what it says are illegal casinos openly operating in small towns around the state. POM is holding press conferences in front of the businesses. Dossiers on those businesses were handed off to district attorneys in Lancaster, Schuylkill and Beaver counties recently.

POM’s pitch is that its games are legal and its rivals’ are not. That’s because the Beaver County Common Pleas Court six years ago found that an element of skill was necessary to win the three games found on one seized POM device.

For a time, POM used that court win and a subsequent injunction as it distributed more machines and even sued a competitor, saying the rival did not offer a skill game.

But then another court in November 2019 labeled skill games as slot machines. The enforcement injunction was lifted in January 2020. POM has appealed the lifting of the injunction, but that case is plodding through the courts.

PGCB and PA State Police take stances against skill games

The Pennsylvania Gaming Control Board (PGCB) has definitively labeled skill games, including POM machines, as illegal slot machines under the state’s gaming laws.

The PA State Police unequivocally say all gambling devices outside casinos, other than licensed truck stop VGTs, are illegal and subject to seizure.

POM continues, though, to try to differentiate itself from rival wagering device companies, most recently at a Harrisburg press conference.

POM: It’s not us, it’s those other guys

Mike Barley, a spokesman for POM, issued a written statement to PlayPennsylvania when asked about SB 1256:

“While we believe the regulation of skill games will greatly benefit small businesses, restaurants, bars, fraternal clubs and the Commonwealth, SB 1256 promotes the widespread proliferation of VGTs on every corner of Pennsylvania. This legislation would kill the legal skill game industry and countless Pennsylvania small businesses, many [of] which are multigenerational family businesses, in the coin-op industry. SB 1256 puts the interests of large out-of-state companies over these family-owned small businesses.

“While Pennsylvania Skill games, powered by Pace-O-Matic, have been adjudicated legal and require skill, a VGT is a slot machine which directly competes with the games already offered in casinos. Illegal VGTs, masquerading as ‘skill games,’ are already on the street, many in unregulated mini-casinos, and were recently seized by the District Attorney of Berks County.

Slot machines legal in pennsylvania county

“The claims that the lottery or casinos have lost revenue due to skill games ring hollow when you examine the numbers. Before the COVID-19 pandemic, the revenues related to casinos and lottery were at record highs. That was at the same time the revenue for skill games [was] growing. We contracted with an independent economist who reviewed the data and found that our games have not had a negative impact on either the casinos or lottery revenues. The lottery’s study was conducted internally and the details have not been released.”

Lead image credit: AP Photo/Matt Rourke

Introduction to Pennsylvania Slot Machine Casino Gambling in 2020

Pennsylvania slot machine casino gambling consists of twelve casinos of which six are pari-mutuel racetracks with slot machines, four are standalone casinos, and two are casino resorts.

Pennsylvania has both minimum and maximum theoretical payout limits. Return statistics are publicly available online.

This post continues my weekly State-By-State Slot Machine Casino Gambling Series, an online resource dedicated to guiding slot machine casino gambler to success. Now in its third year, each weekly post reviews slots gambling in a single U.S. state, territory, or federal district.

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Relevant Legal Statutes on Gambling in Pennsylvania*

The minimum legal gambling age in Pennsylvania depends upon the gambling activity:

  • Land-Based Casinos: 21
  • Poker Rooms: 21
  • Bingo: 18
  • Lottery: 18
  • Pari-Mutuel Wagering: 18

In 2004, the Pennsylvania Race Horse Development and Gaming Act passed. This Act legalized slot machines at fourteen locations. Of these locations, gaming licenses have yet to be issued for a standalone casino and a pari-mutuel racetrack with slot machines.

Since July 2010, table games are in Pennsylvania casinos.

In October 2017, the state legislature legalized casino gambling at truck stops, airports, and online. This bill also authorized ten new satellite casinos with location restrictions.

  • Satellite casinos of existing casino operators must be within 25 miles of their existing Pennsylvania casino. Further, local municipalities may prohibit such a casino. These satellite casino licenses allow up to 750 slot machines and 50 table games.
  • Racetracks and standalone casinos can have up to 5,000 slot machines and 250 table games, while casino resorts can have up to 600 slot machines and 50 table games. Truck stops approved by their county may have up to 5 slot machines.

Casino operators may operate a gambling parlor at any of Pennsylvania’s international and regional airports, assuming successful agreements with the airport authority. None have yet opened, but expected in 2020.

To gamble within a casino resort, players must be a guest there. Put another way, the gaming floors within the casino resorts are not open to the public.

*The purpose of this section is to inform the public of state gambling laws and how the laws might apply to various forms of gaming. It is not legal advice.

Slot Machine Private Ownership in Pennsylvania

It is legal to own a slot machine privately in the state of Pennsylvania if it is 25 years old or older.

Gaming Control Board in Pennsylvania

The state gaming commission is the Pennsylvania Gaming Control Board (PGCB). The PGCB is responsible for overseeing slot machines and casino gambling in the state.

Two different state gaming commissions are each responsible for the state lottery and charitable gaming.

Casinos in Pennsylvania

There are two casino resorts, four standalone casinos, and six racetracks with slot machines in Pennsylvania.

The largest casino in Pennsylvania is Parx Casino with 3,238 gaming machines during the last week of January 2020.

The second-largest casino is Wind Creek Bethlehem with 3,046 gaming machines during the last week of January 2020.

Commercial Casinos in Pennsylvania

The two casino resorts in Pennsylvania are:

  1. Nemacolin Woodlands Resort in Farmington, 69 miles southeast of Pittsburgh.
  2. Valley Forge Casino Resort in King of Prussia, 21 miles northwest of Philadelphia.

The four standalone casinos in Pennsylvania are:

  1. Mount Airy Casino Resort Spa in Mount Pocono, 31 miles southeast of Scranton.
  2. Rivers Casino Philadelphia, 3 miles northeast of the downtown area.
  3. Rivers Casino Pittsburgh in the downtown cultural center.
  4. Wind Creek Bethlehem, 58 miles north of Philadelphia.

The six pari-mutuel racetracks with slot machines in Pennsylvania are:

  1. Harrah’s Philadelphia in Chester, 18 miles southwest of Philadelphia.
  2. Hollywood Casino at Penn National Race Course in Grantville, 17 miles northeast of the capital of Harrisburg.
  3. Mohegan Sun Pocono in Wilkes-Barre, 15 miles southwest of Scranton.
  4. Parx Casino in Bensalem, 19 miles northeast of Philadelphia.
  5. Presque Isle Downs & Casino in Erie, 126 miles north of Pittsburgh.
  6. The Meadows Casino Racetrack Hotel in Washington, 26 miles south-southwest of Pittsburgh.

Tribal Casinos in Pennsylvania

Pennsylvania has no federally-recognized American Indian tribes. Therefore, Pennsylvania has no tribal casinos as allowed by the federal Indian Gaming Regulatory Act of 1989.

However, Pennsylvania is one of the few U.S. states with commercial casinos owned and operated by an American Indian tribe:

  1. Mohegan Sun Pocono is owned and operated by the Mohegan Indian Tribe of Connecticut through their Mohegan Gaming and Entertainment corporation.
  2. Wind Creek Bethlehem is owned and operated by the Poarch Band of Creek Indians through their Wind Creek Hospitality corporation.

Other Gambling Establishments

As an alternative to enjoying Pennsylvania slot machine casino gambling, consider exploring casino options in a nearby state. Bordering Pennsylvania is:

  • North: New York Slots and Lake Erie
  • East: New Jersey Slots
  • South: Delaware Slots, Maryland Slots, and West Virginia Slots
  • West: Ohio Slots

Each of the links above will take you to my blog for that neighboring U.S. state to Pennsylvania.

Our Pennsylvania Slots Facebook Group

Are you interested in sharing and learning with other slots enthusiasts in Pennsylvania? If so, join our new Pennsylvania slots community on Facebook. All you’ll need is a Facebook profile to join this closed Facebook Group freely.

There, you’ll be able to privately share your slots experiences as well as chat with players about slots gambling in Pennsylvania. Join us!

Payout Returns in Pennsylvania

The theoretical payout minimum for slot machines in Pennsylvania is 85%. Further, the maximum theoretical payout limit may not equal or exceed 100%. Both limits apply to each single play.

The PGCB makes monthly return statistics publicly available for Fiscal Year 2019/2020 for each gaming facility. To calculate player win%, divide payouts by wagers provided in each report.

For February 2020, the player win% at slots for each casino and statewide were:

  • Harrah’s: 89.47%
  • Hollywood: 89.38%
  • Mohegan Sun: 89.63%
  • Mount Airy: 90.35%
  • Nemacolin: 89.18%
  • Parx: 90.43%
  • Presque Isle: 89.43%
  • Rivers Philadelphia: 90.49%
  • Rivers Pittsburgh: 89.68%
  • The Meadows: 90.11%
  • Valley Forge: 90.25%
  • Wind Creek: 89.98%
  • Statewide: 89.97%

For February 2020, the highest player win% went to Rivers Philadelphia at 90.49%, followed closely by Parx and Mount Airy. The lowest player win% went to Nemacolin at 89.18% followed closely by Hollywood Penn National and Presque Isle.

Summary of Pennsylvania Slot Machine Casino Gambling in 2020

Pennsylvania slot machine casino gambling consists of two casino resorts, four standalone casinos, and six racetracks with slot machines. Other locations should still open in 2020.

The theoretical payout limits are a minimum of 85% and a maximum of up to 100%. Monthly return statistics by casino are available online from the state gaming control board.

Annual Progress in Pennsylvania Slot Machine Casino Gambling

In the last year, the Sands Casino Resort Bethlehem became Wind Creek Bethlehem, acquired by the Poarch Band of Creek Indians through their Wind Creek Hospitality corporation for $1.3 billion.

Otherwise, there have been numerous casino name changes including:

  • Lady Luck Nemacolin became Nemacolin Woodlands Resort.
  • Valley Forge Convention Center Casino became Valley Forge Casino Resort.
  • Mount Airy Resort & Casino became Mount Airy Casino Resort Spa.
  • Sugar House Casino became Rivers Casino Philadelphia.

Related Articles from Professor Slots

  • ABC27 Harrisburg Evening News: A closer look at casino slot payouts

Other State-By-State Articles from Professor Slots

  • Previous: Oregon Slot Machine Casino Gambling
  • Next: Puerto Rico Slot Machine Casino Gambling

Have fun, be safe, and make good choices!
By Jon H. Friedl, Jr. Ph.D., President
Jon Friedl, LLC