A limit on Pennsylvania skill games was voted into effect last week in the Meadville section of the Keystone State. According to a new zoning ordinance, skill games parlors in Meadville are limited to just three sections of the city.
The vote to limit skill games in Meadville first occurred last month, with the final approval, putting the plan into action, happening last week.
Skill games in Pennsylvania are a popular form of legal gaming alongside Pennsylvania online casinos and sports betting.
Who will be affected by Meadville’s new skill games zoning rules?
The new zoning rules affect anyone who wants to open a business where skill games drive most revenue. Current establishments already established in Meadville can continue to operate as constructed.
To acquire zoning approval in the select areas, owners must complete the following process:
- Requires applicants to make their cases and present plans to the city’s Zoning Hearing Board
- Notifying neighbors and allowing them to offer their comments
- Five board appointees vote on the request
There are now three areas in the city that are available for skill games owners who want to open a new business. Those are:
- West of French Creek Parkway
- North Street-State Street corridor between Water and Grant Streets
- Park Avenue from Pine Street to Linden Street
See the rough map below for the areas impacted by the ruling.
Councilman Jim Roha did vote in favor of the ordinance. However, he proceeded with caution in doing so. Roha counted 12 vacant buildings in the city’s business section, with three more closing in the near future. Taxes are not being paid since there is no owner, which could be something to worry about down the line. According to the Meadville Tribune, Roha raised the following questions:
“So when we’re passing this ordinance or any other ordinance to refine our zoning ordinance, the question to me is — do we have tenants to fill those buildings?”
“There may be buildings that are being used for uses that are not, shall we say, appreciated by everybody or maybe target certain individuals, but they do serve a purpose and they do keep downtown filled. I would ask you to consider that when you’re making a decision on this ordinance amendment and future ones.”
Pace-O-Matic onboard with Meadville decision
It appears as if Pace-O-Matic (POM), a Georgia-based skill games manufacturer, is fine with the vote. Chief of Public Affairs, Mike Barley, reiterated the use for skill games in an email to PlayPennsylvania.
“Pace-O-Matic has always opposed mini-casinos that feature wall-to-wall machines and are a blight on our communities. This is not how we operate.”
“Pennsylvania Skill games provide important supplemental revenue to small businesses, restaurants, bars, veteran organizations and volunteer fire companies. Our games are never the main source of income for these establishments.”
Skill games are currently legal in the Keystone State, but the decision rests in the Pennsylvania Supreme Court. A timeline on a ruling determining the legality of the games in unknown.
PA skill games vs. PA casinos vs. iGaming
Pennsylvania casinos have been at odds with POM since their machines have spread rapidly across the state.
The Pennsylvania Supreme Court has been in the middle of many complaints and hearings regarding skill games. The court agreed in June to determine the legality of games, but there is no timeline in place.
Soon after, 12 PA casinos filed a complaint to the state Supreme Court claiming that taxes on slot machines are unconstitutional because of the lack of oversight skill games have in the state.
Keystone State casinos might have a point, as slot revenue has increased only 4% since 2018, compared to the average of 21% in surrounding states such as New York, New Jersey, Ohio, Maryland and Delaware.
| Year | Delaware | Maryland | New Jersey | New York | Ohio | Pennsylvania | Total (ex. PA) |
|---|---|---|---|---|---|---|---|
| 2018 | $352.4 million | $1.09 billion | $1.8 billion | $2.43 billion | $1.60 billion | $2.37 billion | $7.27 billion |
| 2019 | $366 million | $1.14 billion | $1.77 billion | $2.54 billion | $1.67 billion | $2.36 billion | $7.48 billion |
| 2021 | $393.1 million | $1.30 billion | $1.87 billion | $2.53 billion | $2.02 billion | $2.29 billion | $8.12 billion |
| 2022 | $405.3 million | $1.33 billion | $2.04 billion | $2.66 billion | $2.03 billion | $2.39 billion | $8.46 billion |
| 2023 | $425.7 million | $1.33 billion | $2.10 billion | $2.82 billion | $2.10 billion | $2.46 billion | $8.78 billion |
| Total Growth Percentage | 21% | 22% | 16% | 16% | 31% | 4% | 21% |
Perhaps there’s a way both can co-exist, because POM is also against skill games parlors and illegal machines.
“The proliferation of illegal gaming in Pennsylvania is a major reason why we support commonsense regulation for skill games,” Barley told PlayPennsylvania. “If legislation passes, there will be fewer machines operating in the state as regulation will help law enforcement identify and shut down illegal games and mini-casino dens.”
Should the Supreme Court rule in favor of skill games, legislation will be the next hurdle. Pennsylvania casinos want the machines to be taxed at the same 54% rate while POM supports Pennsylvania Senator Gene Yaw (R-23), which includes a 16% tax.
There’s certainly a lot to sort out. However, there are hopes of a deal getting done that is fair for everyone.
