DV Journal

It’s a tale as old as time in Harrisburg. But for those who read about skill games for the first time an obvious question often remains; how is this different from gambling?

In simplest terms, skill games are interactive, where, with hand-eye coordination and a little intellectual acuity, the player can affect the outcome on every play. Games can be won by the player’s own skill. On the other hand, casino and lottery games are won by chance. The player has no input as to the spin of the slots, the roll of the dice, the cards dealt or when the roulette wheel stops.  The outcome is pre-programmed.

Skill games are not found in glitzy casinos. Skill games are specifically designed to provide supplemental income to small businesses. They’re found in our neighborhood convenience stores, our American Legions, our VFW posts, volunteer fire companies and local taverns.

The story of skill games and the casino and lottery industry is, quite literally, David vs. Goliath.

David seeks to make a living. With the help of skill games – and his customers who must be present in his establishment to play them – he put a new roof on his legion post this year, or maybe he repaired the floor in his banquet hall, or he provided his employees with health benefits for the first time. Through legislation that I sponsored, David himself even asks to be taxed and regulated so this industry can operate safely and responsibly.

Goliath operates a $6 billion per year industry out of his multi-million-dollar structures. He houses thousands of players, 24 hours a day, seven days a week, 365 days a year and his games are also available to play remotely on a cell phone at any time of day or night, by players of any age.

Goliath’s industry supporters are readily recognizable. They are those who simplistically lump all machines outside of casinos together as “skill games,” simply based on the appearance of the cabinetry. It seems that understanding why legal skill games are different would require thoughtful effort, which is not part of Goliath’s script. Instead, his casino mouthpiece echoes a tired, deliberately misleading diatribe ignoring both the facts and the law.

The only games that have generated court decisions and definitions of “skill games” are Pennsylvania Skill games developed by Pace-O-Matic (POM). For whatever reason, this company’s games were targeted as illegal by certain law enforcement. However, after an unbroken series of favorable court decisions, including a unanimous decision by the Commonwealth Court, it was made clear that the games and software developed by POM are predominately based on skill and not chance. This is a major difference which Goliath neglects or refuses to recognize.

Goliath has touted record earnings quarter after quarter, year after year. Yet, he cries that the sky is falling because skill games are taking his money – a claim that is simply unfounded. It’s all too easy to ignore facts and logic when corporate greed is at stake.

Competition is not the issue. Greed is the issue. Once again, the people who operate small businesses are relying on David to protect their interests. It’s time to stop letting Goliath’s rhetoric drown out the truth.

Gambling generates big bucks in Pennsylvania, and Gov. Josh Shapiro’s budget proposal counts on it generating even more.

Gamblers spent a record $6.1 billion in Pennsylvania last year, creating $2.7 billion in state revenue.

Another thing easy access to gaming creates? Addiction.

Pennsylvania has the fourth-highest gambling addiction problem, according to a new study from WalletHub. As might be expected, Nevada, home of gambling Mecca Las Vegas, takes first place, followed by South Dakota and Montana. Mississippi ranks fifth.

Gambling disorder or compulsive gambling affects between 1-3 percent of all U.S. adults. “Gambling can stimulate the brain’s reward system much like drugs such as alcohol can, leading to addiction,” according to the Mayo Clinic.

In 2024, Americans lost approximately $172 billion through legal gambling, according to industry estimates. That figure includes losses from casinos, sports betting, online gaming, and lotteries. America’s commercial gambling industry generated $71.92 billion in revenue,

Philadelphia psychologist Julian Katz sees a lot of people who are addicted to gambling. He believes the ease of online gambling drives his patients’ addiction.

“What causes it is the accessibility,” he said. “You can take your phone and access it 24/7. It’s a growing problem.”

Katz added, “It can destroy lives,  not just the life of the gambler but everyone in their circle,” including spouses, children and friends.” He’s seen gamblers who write bad checks or sell their family heirlooms to get money to continue. Gambling addiction can lead to divorce, or losing a house and car. The effect on the gambler’s family is “heinous,” he said.

The good news is that talk therapy can help, along with groups like Gamblers Anonymous, he said.

Pennsylvania’s Compulsive and Problem Gambling Treatment Fund receives .002 percent from the combined revenue of casino, iGaming, sports wagering and fantasy sports, or $2 million, whichever is greater, according to Doug Harbach, communications director for the state Gaming Control Board. Another $3 million goes to the Department of Drug and Alcohol Programs, which helps with compulsive gambling, along with drug and alcohol addiction.

His department does not oversee the state lottery, a separate agency. The lottery saw $1.22 billion in profits for fiscal year 23-24, the 13th consecutive year that profits exceeded $1 billion. Proceeds from the lottery go to programs to help senior citizens. Looking for more revenue, Shapiro and the state legislature are eying taxes on games of skill, which have been installed in bars, restaurants, and gas stations.

Debra Cohen, a spokesperson for the American Gaming Association (AGA), declined to comment on WalletHub’s findings.

A 2024 Connecticut study found problem gambling for adults remained at 1.4 to 1.8 percent even after the state launched legal sports betting and iGaming. A 2022 Indiana study found 1.3 percent to 2.3 percent of that state’s residents met the clinical threshold for gambling disorder.

Chip Lupo, a WalletHub analyst, said, “Gambling addictions can destroy lives the same way that alcohol and drug addictions can. While some people may be able to enjoy casual gambling from time to time, others need to avoid temptation altogether. People with a gambling addiction may find it helpful to live in states where places to gamble are less prevalent and laws against betting are stricter.”

Katz believes the problem is only getting worse.

“I don’t think we’re anywhere near where this is cured or fixed,” Katz said. A problem gambler’s best chance of recovery is “self-exclusion” to make sure they can’t go to their favorite gambling apps or casinos, he said.

The Problem Gambling Helpline is: 1 (800) GAMBLER or (1(800) 426-2537.

These days, it’s easy to put a spin on something and pedal it as if it is the undisputed truth.

Take legal skill games, for example. Fear-mongering arguments pushed by the Pennsylvania Lottery and casino industry take great efforts to ignore both the facts and the law.

A recent Pennlive editorial claimed, “Gambling in Pennsylvania needs the strong oversight only casinos can guarantee.” PennLive’s Editorial Board apparently is of the opinion that the lottery should be run by casinos.

What I hope might finally put an end to the false narratives is legislation I have introduced to regulate and tax skill games – establishing stringent rules for operating the games, generating an estimated $250 million annually in state taxes and ridding Pennsylvania of the growing scourge of illegal video gambling terminals.

Opponents of skill games always fail to mention the regulatory framework put forth in my legislation and the many court decisions declaring games of skill legal in Pennsylvania.

During recent state budget hearings, the lottery claimed skill games impact their revenue. In reality, the Pennsylvania Lottery has hit record profits of more than $1 billion for 11 consecutive years.

A study by respected economist and Villanova University professor Peter Zaleski, and commissioned by skill games technology company Pace-O-Matic, discovered the five-year growth rate of lottery sales before skill games entered the state market – from 2010-2015 – was 4.5 percent.

For the five-year period of 2016-2021, when people were playing legal skill games, the lottery growth rate increased to 5.1 percent. The findings also showed lottery sales are higher in Pennsylvania counties with a larger number of skill games. That data is echoed by location owners who say their lottery sales increased once they added the games.

Like the lottery, casinos are reporting record profits. Yet, they see a couple of skill games at a neighborhood establishment, like Zembies Sports Bar in Harrisburg, and they scream competition.

Why all the opposition to skill games? For the lottery and casinos, they don’t want even a whiff of what they perceive as competition. Sadly, they could not care less if their stance hurts the many small businesses, veterans’ groups, volunteer fire companies or other organizations that have come to rely on the supplemental income generated by legal skill games.

Casinos love to act as though they alone have dealt with age restrictions. Yet each day, bars and restaurants, as well as convenience and grocery stores, are responsible for selling tobacco and alcohol products exclusively to adults.

You already need to be 18 to play legal skill games in the state, but my legislation would codify that restriction into law and include a valid identification requirement for pay-out, protecting businesses and children alike. Meanwhile, lottery machines that don’t require person-to-person counter sales will continue to go essentially unmonitored in grocery and convenience stores.

Regarding child safety, instead of worrying about a few skill games, the casino industry should spend time on its crisis — making sure fewer children are left in cars in their parking lots. The Pennsylvania Gaming Control Board reports that from the start of 2022 through May 2023, there have been 370 incidents of adults leaving children unattended so they could gamble at Pennsylvania casinos. The incidents involved nearly 600 children.

Even though casinos and the lottery have experienced record earnings, it is clear people like to play skill games; they provide a different, unmet experience from casinos or the lottery. Perhaps that’s because some people want to play a game that requires some thinking and a learned skill and have an opportunity to win. Maybe players just get tired of scratching.

More importantly, while casino and lottery games can be played from virtually anywhere at any time on a cell phone, skill games require the player to come in the front door and play in-person, on the premises, where the game is located. If you want to know why this matters, just walk into a neighborhood market, a family-owned restaurant or a VFW. Skill games, unlike glitzy casinos, are neighborhood- and small business-oriented.

There is already plenty of public support for legal skill games.

We now must pass legislation that will provide accountability, regulation and enforcement of the games, along with tax money that benefits the state.

My bill is an opportunity to benefit small businesses, support community groups and increase state revenue. Opportunities like this don’t come along often.

It’s time to move beyond all the false rhetoric.

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