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PENN Entertainment CEO Jay Snowden did not mince words when addressing Pennsylvania skill games during the company’s Q1 2026 earnings call.
Snowden repeatedly characterized the controversial machines, which are widely spread across Pennsylvania bars, restaurants, and convenience stores, as illegal, highlighting the company’s long-standing opposition to the devices.
The regulated industry is largely in agreement, as it believes skill games takes business away from retail and Pennsylvania online casinos.
Snowden: Skill games ‘illegal’ in most markets
Snowden emphasized that PENN views the legality question as straightforward.
“They’re illegal. I don’t think that we would make that argument in really any other areas of life.
“So, if you’re operating illegal machines and the state attorney general says shut them down, they need to be shut down, and they probably should never have been in operation in the first place.”
Skill games have operated in a legal “gray area” in Pennsylvania for years, with manufacturers arguing the devices require an element of player skill.
Retail operators and regulators, however, have consistently pushed back, saying the machines function as unregulated gambling devices that compete with licensed casinos without oversight or taxation.
Snowden made clear PENN falls firmly in that camp.
PA Supreme Court case looms
Penn executives also pointed to an upcoming Pennsylvania Supreme Court case as a potential turning point in the debate. Snowden said:
“The skill game legal case is going to be in front of Pennsylvania State Supreme Court in the next couple of months.
“We’ll see how that goes. But we obviously have a very strong opinion as to skill games and legality, and from our perspective, illegality of those devices in most of these markets, if not all.”
The high court’s decision could have sweeping implications for the future of the machines in Pennsylvania, where they have proliferated outside the state’s regulated gaming system.
Enforcement trends encouraging for operators
Snowden suggested recent developments outside Pennsylvania could signal a broader shift against skill games.
“In the case of Missouri, you’ve got an attorney general there that we think is doing a fantastic job of really stepping up and shutting these devices down.”
He added that PENN is “feeling better about where things sit in states like Pennsylvania and Missouri than we probably ever have,” pointing to increased enforcement and legal scrutiny.
Potential tailwind for properties
For PENN, which operates multiple Hollywood Casino properties in Pennsylvania, stricter enforcement or an unfavorable ruling for skill game operators could benefit its retail business.
Snowden said:
“Clearly, if that moves in the direction that we hope it does, it would create some sort of a tailwind for us on the retail side. It’s hard to measure … but I would imagine that would be ultimately a tailwind for us.”
He acknowledged that some bar and tavern owners argue the machines are essential to their business models, but he dismissed that reasoning, reiterating that legality should take precedence.
