Business owners, civic groups discuss skill games deadline
Civic groups, businesses worried by impending plan to regulate devices
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BEDFORD -- With less than 30 days remaining for state legislators to come up with a plan to regulate "skill game" devices, small business owners and civic organization officials are worried.
During an informational session Thursday evening at the Moose Lodge in Bedford, representatives of Pace-O-Matic and DeLeo Games were joined by those who would be most affected by the shutdown of the skill game industry.
"We have three skill machines," said Deb Gentilini, administrator of the Bedford Moose. Civic organizations like the Moose are the "heart of the community," she said, noting the organization's gaming revenue is used for charitable giving.
"We give to schools, to sports teams, the scholarship fund, senior center and other things, like Moose Heart and Moose Haven," she said.
While the organization would continue charitable giving without income from skill games, they wouldn't have as much money to disperse, Gentilini said.
Jeff Goss, president of Moose Riders, ticked off a list of organizations that benefit from the skill machines revenue, noting the group also supports veterans programs, emergency services, substance abuse programs and more.
"If gaming goes away, it's going to hurt us," he said. "We donate to a lot of different organizations."
"People are concerned," said Rachel Albritton. "They'll need to find a way to make up that revenue" if legislators fail to regulate skill machines by the Oct. 13 deadline.
Albritton attended the meeting as a representative of Pace-O-Matic, the maker of the Pennsylvania Skills devices. These are not to be confused with other "skill" machines, she said. Pace-O-Matic games have been around for years and are placed in taverns, bars and other community locations, such as a VFW, she said.
"We feel our games should be supplemental income," Albritton said, clarifying that their games are not intended for a stand-alone business venture, like some skill game parlors that have cropped up in recent years.
"As an industry and a company, we are on board with being taxed at a rate that is fair and reasonable," she said, noting that there are an estimated 70,000 skill games on the market in Pennsylvania.
Skill games illegal
At the heart of the issue is a June 15 state Supreme Court ruling that states "skill game" devices are in fact slot machines as defined by the Gaming Act.
At the same time, the court ruled that law enforcement couldn't take any action for 120 days to give the legislature time to decide whether to regulate the games.
With time running out, Pace-O-Matic, game operators like Altoona's DeLeo Games, small business owners and officials with civic organizations are calling on lawmakers to get to work on proper regulations.
The group said Thursday they support two pieces of legislation -- Senate Bill 1079 and House Bill 2213, which are bipartisan measures to regulate skill games across the state.
The legislation, if passed, would create a $500 monthly per-terminal fee that would be split between the location ($200), operator ($200) and game developer ($100).
It's estimated that this would immediately generate $300 million in annual revenue, according to a flyer handed out at the meeting.
These bills would also protect small businesses by limiting the number of terminals -- up to five in a licensed establishment and up to 10 in fraternal organizations -- and address nuisance locations, such as stop-and-go establishments in Philadelphia, illegal gambling and mini-casinos.
There have been other proposals for regulating skill games, including a tax at more than 50% that is being pushed by casinos, meeting organizers said.
What happens on Oct. 14?
If the legislature fails to pass legislation on skill games, law enforcement officers are ready to uphold the law, according to a state police Facebook post.
"Slot machines are considered gambling devices under the Crimes Code, and a person commits a criminal offense by owning, operating or maintaining slot machines without a license issued by the Pennsylvania Gaming Control Board," the post states.
"Therefore, all 'skill game' devices/slot machines throughout the commonwealth outside of licensed casinos and truck stops are unlawful and all establishments possessing, operating and/or maintaining such machines are subject to criminal prosecution and immediate seizure of the machines as of Oct. 14," according to the post.
State police said enforcement may include seizing and forfeiting the machines, associated equipment and money associated with the operation of the machines and/or filing criminal charges where deemed appropriate.
Without new regulations, state police said that when Oct. 14 comes, "simply powering off an otherwise operable machine or unplugging them is not sufficient to comply with the law."
The post notes that if a distributor or vendor won't remove the machines from an establishment, the business owner or organization official should contact state police for assistance in the removal of the machines.
Health benefits and more
Doug Sprankle of Sprankle's Neighborhood Markets is among the small business owners pushing for regulations before the October deadline.
Sprankle, a former Blair County resident who now hails from the Leechburg area, said he has skill games in each of his three western Pennsylvania grocery stores.
Not only does he credit the continued growth of his stores to the foot traffic the games bring in, but he said he can now offer health benefits to his employees.
He likens the skill games to a grocery store's milk department -- they simply are another aspect of the store, not the main attraction.
"They're made for entertainment, to bring people together," he said of the skill games.
The extra money the games bring in can make or break a business, he said.
"Who's going to pay when that money goes away," he asked. "More taxes. ... I don't want that."
Fire companies and other volunteer nonprofits also rely on skill games to boost their coffers, said Dreama Everts of the McConnellsburg Volunteer Fire Company.
"We are not supported by the fire tax in Fulton County," she said, explaining the company has four ambulances and a variety of fire apparatus.
The fire company has five games that "have helped with our bills," she said.
Not only do the games bring in revenue to help pay bills, the funds are used to support local 4-H kids by enabling the company to purchase project animals at the fair. They also purchase bicycles and electric scooters to give to kids in need and to provide Christmas gifts for lower income families.
"We need to keep the games to continue to support our community, " she said.
If you go
What: Informational meeting on skill games regulations
When: 5 p.m. Wednesday, Sept. 16
Where: Cresson American Legion Post 238
Event is open to the public