Remove Skill Games or Face Raids: A Comprehensive Guide for Pennsylvania Businesses

Remove Skill Games or Face Raids: A Comprehensive Guide for Pennsylvania Businesses

Introduction: The Ultimatum

The Pennsylvania State Police (PSP) has issued a clear and urgent warning to any business still housing unregulated skill gaming terminals: remove the machines before October 13, 2026, or risk raids, property seizures, and criminal charges. This directive follows a landmark ruling by the Pennsylvania Supreme Court in June 2026, which ended years of legal debate over whether skill‑based elements exempt these devices from state gambling laws. With the court’s 120‑day stay expiring, law enforcement is now preparing to act against businesses that continue to host the controversial terminals.

This guide explains the background of the ruling, the specific requirements of the police warning, what businesses must do now, and the legislative efforts that may still change the outcome.


Background on Skill Games in Pennsylvania

What Are Skill Games?

Skill games are electronic gaming machines that allow players to influence the outcome through actions such as timing, pattern recognition, or dexterity—unlike traditional slot machines, which rely entirely on chance. Operators argue that because player skill affects the result, these machines should not be classified as illegal slot machines under Pennsylvania’s Gaming Act. In recent years, an estimated 70,000 skill game terminals were operating across the state, many in convenience stores, bars, and supermarkets.

The Pennsylvania Supreme Court Ruling

In June 2026, the state’s highest court concluded a lengthy legal saga by ruling that even if a machine’s payout rate depends partly on skill, it still qualifies as an unlicensed slot machine under the Pennsylvania Gaming Act and Crimes Code. The court rejected the argument that skill elements exempt the devices from regulation. However, the judges granted a 120‑day stay to allow distributors, vendors, and host businesses time to remove the machines—and to give the legislature a window to pass a bill that would legalize and regulate the games.

Why the Stay Matters

The stay was intended as a grace period. It gave lawmakers in Harrisburg until mid‑October 2026 to craft a regulatory framework. As of early September 2026, no such legislative solution had been enacted, leaving the police to take action.


The Police Warning and Enforcement Timeline

What Businesses Must Do Now

On Wednesday, September 9, 2026, the Pennsylvania State Police released formal guidance reminding all businesses that the Supreme Court’s stay expires on October 13, 2026. The guidance makes clear that simply unplugging or powering off the machines is not sufficient to comply with the law. The official statement reads:

“Simply powering off an otherwise operable machine or unplugging them is not sufficient to comply with the law. If a distributor or vendor is unwilling to remove machines, the establishment is encouraged to proactively reach out to PSP to assist in their removal to ensure compliance with applicable law.”

Businesses are urged to contact their skill game distributor or vendor immediately to arrange physical removal of the machines. If the distributor refuses, the host venue should notify the PSP for assistance.

Consequences of Non‑Compliance

After October 13, the PSP and other law enforcement agencies “may take enforcement action” against any business that continues to possess, operate, or maintain skill game terminals. The notice warns of the following possible actions:

These penalties apply not only to the machine owners but also to the businesses that host them.


Current Status and Legislative Efforts

How Many Machines Still Operate?

Before the Supreme Court ruling, skill game terminals were widespread. Despite the decision, most machines continue to operate as of September 2026. One Pennsylvania grocery store owner told Casino.org that Pace‑O‑Magic, the leading provider of “Pennsylvania Skill” machines, had not contacted them about removal. This suggests many businesses are unaware of the deadline or are waiting for legislative action.

Proposed Regulation by State Rep. Russ Diamond

State Representative Russ Diamond (R‑Lebanon) plans to introduce a bill that would regulate and tax skill games. His proposal includes:

Rep. Diamond also intends to propose an overhaul of state gaming taxes by eliminating local share payments—the percentage of casino revenue that goes to municipalities and counties. This component is controversial and likely to face strong opposition.

Opposition from Local Governments

Local municipal and county leaders rely heavily on the 2% to 4% share of casino gaming revenue they currently receive. Removing these payments would significantly impact their budgets. Any bill that includes such a change will face pushback from local officials, making swift passage uncertain.


Practical Steps for Businesses Hosting Skill Games

1. Contact Your Distributor or Vendor Immediately

The first step is to reach out to the company that supplied the machines. Ask for a timeline for removal. If the distributor is unresponsive or refuses, document the communication and notify the PSP.

2. Arrange Physical Removal

Simply turning off the machines does not satisfy the law. The devices must be physically taken out of the premises. Coordinate with the vendor to schedule pickups. If the vendor cannot do so, the business should request PSP assistance.

3. Verify Compliance with Local Law Enforcement

After removal, keep a record (e.g., photos, receipts, written confirmation from the vendor or PSP). This documentation can protect you if enforcement actions are later questioned.

Given the complexity of the law and the potential for criminal charges, businesses should consult an attorney experienced in Pennsylvania gambling regulations. Legal advice can help navigate removal logistics, liability issues, and any disputes with distributors.

5. Monitor Legislative Developments

Although the deadline is firm, a last‑minute bill could legalize skill games retroactively. Stay informed through local news and trade associations. However, do not delay removal based on hope alone—the police have stated they will act after October 13.


Frequently Asked Questions

Q: Can I simply unplug the machines and leave them on site?
No. The police explicitly state that “powering off or unplugging” is insufficient. The machines must be physically removed.

Q: What if the distributor refuses to take the machines?
Contact the PSP for assistance. They have offered to help businesses that are willing to comply but are being blocked by vendors.

Q: Will I be charged criminally if I remove the machines before the deadline?
Not if you comply fully. Enforcement is directed at businesses that continue to operate or possess machines after October 13.

Q: Is there any chance the law will change before the deadline?
Legislation is being proposed, but no bill has passed as of September 2026. The police warning indicates they expect compliance by the original deadline.


Conclusion: Act Now to Avoid Penalties

The Pennsylvania State Police have made their position clear: skill gaming terminals are unlicensed slot machines under state law, and the grace period ends on October 13, 2026. Businesses that delay removal risk raids, asset seizure, and criminal prosecution. While legislative efforts continue, the safest course of action is to contact your distributor today and arrange for complete removal. Proactive compliance is the only way to ensure your business remains on the right side of the law.