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There is a clearer picture of the Pennsylvania skill games industry now that the Supreme Court ruled the games as slot machines. Despite the ruling, it has not cooled down discussions and opinions over what should happen next with the industry.
Parx Casino CEO Eric Hausler voiced his opinions and concerns about skill games in a recent op-ed. He identified their connection with “criminal behavior” and “compulsive gambling,” and he called into question Pace-O-Matic’s (POM) interest in small businesses.
POM responded to those comments to PlayPennsylvania on Wednesday. Mike Barley, POM spokesman, said:
“I’m not surprised to hear Parx Casino has zero interest or concern for the future of small businesses, veterans groups, or volunteer fire companies.
“We are focused on supporting legislation that lifts up our small businesses and fraternal clubs with solutions that allow them to continue to operate skill games and earn this important supplemental revenue.”
More on Hausler’s op-ed
Hausler started his op-ed by stating that the Supreme Court made a “common sense” ruling that pits skill games and slot machines as the same. Skill machines operating outside of Pennsylvania retail casinos are considered illegal.
He also stated that Parx Casino, which is the top-grossing property in the state, has “borne the brunt of this fight.” Parx, including other properties across the state, has lost significant revenue because of skill games. Hausler estimated that skill games have cost the state $250 million in tax revenue.
According to Hausler, he called the taxpayers and senior programs the “real victims.” He added this note about small businesses:
“It’s a shame that these small businesses got taken in and became dependent on an unregulated and untaxed form of gambling that brought with it a plethora of crime, tax evasion, money laundering and compulsive gambling. History has shown that unregulated and untaxed gaming fosters criminal behavior and the last seven years of skill games in Pennsylvania have further proven that case.”
Being regulated by the Pennsylvania Gaming Control Board, Hausler said that properties are able to make a profit despite slot machine revenue taxed at 54%.
Hausler wrote:
“If there is going to be a legal expansion of gaming in Pennsylvania, the skill industry needs to play by the same rules that the rest of us have been successfully playing by since 2006. If they can’t, they shouldn’t be allowed to play at all.”
POM takes issue to state capitol
POM, meanwhile, has continued pushing for a legislative solution since the court’s ruling. The court has issued a 120-day stay either to shut down skill games or to allow lawmakers to create a regulatory framework. A POM spokesperson told PlayPennsylvania last week that it was disappointed by the overall decision, but it did agree on one stance:
“However, we do agree with the court that ‘determining and manifesting the public policy of Pennsylvania is the prerogative of the legislative branch of our government,’ and in accordance with the court-ordered 120-day stay of action, we will continue work with lawmakers toward a legislative solution for skill games.
“Our No. 1 priority continues to be supporting our small business and nonprofit partners across the commonwealth. Pace-O-Matic will always abide by the rule of law.”
POM held a rally on Wednesday at the state capitol, attended by more than 350 people, calling for fair legislation on skill games. The organization told PlayPennsylvania that it supports bills introduced by Rep. Danilo Burgos and Sen. Gene Yaw that include a $500 monthly fee per terminal.
The court ruling painted a clearer picture of the industry. However, there’s a lot to sort out between now and the 120 days the Supreme Court gave.
