Skill-based gaming is nothing new. It debuted in Atlantic City and Las Vegas around five years ago to mixed success.

Casino Slot Machines for Sale. Casino slot machines for sale provided by casinos all over the country for home entertainment. Shoppers can now build their own personal casino providing fun and excitement for everyone. Most people don’t know that they can have their own personal slot machine.

However, skill slots are currently the hottest thing in Pennsylvania’s gaming market. Numerous people are playing these slots at bars, convenience stores, restaurants, and other types of businesses.

A PA skill game works a little differently from a regular slot machine. Assuming you’d like to know more about these games, you can learn about them below.

• Most times convenience stores own their own machines, but sometimes you might find some that are owned and serviced by a vendor such as TD Rowe. They are by far the most profitable machines the vendors have, and they will go through MUCH to get them where ever they can.
• Mayor Jan Jones, who wants to restrict slot machines in supermarkets and convenience stores, testified at a similar meeting last month that she would favor a study dealing with neighborhood.
• A Lehigh Acres convenience employee was arrested when an undercover officer discovered she had working slot machines in the store where customers could gamble. Lee County Sheriff’s Office.

How Does a Pennsylvania Skill Slot Machine Work?

A Pennsylvania skill game looks and plays very similar to a regular slot machine. You begin playing these games by inserting your money into the terminal.

Next, you spin the reels and hope to line up matching symbols in paylines. Most of these games show how much each winning combinations pays through a pay table on the side.

Again, you can see that these games aren’t much different from standard slots. But each can differ from the next regarding the skill element.

Here are various examples on how these slots incorporate skill:

• A pre-reveal mechanism that allows you to see if you’ll win or lose the next spin.
• You must touch wild and/or scatter symbols to activate them.
• Skill-based bonus rounds.

Starting with the first option, pre-reveal slot machines first gained infamy in Florida. They give you an option, or force you, to see if the upcoming round will be a winner or loser.

Knowing the result of the spin enables you to determine whether it’s worth playing. Normally, though, you can only see the result of a single spin.

The second feature, where you touch certain symbols to activate them, doesn’t really bring much skill into the fold. It simply introduces a manual element to the game.

Finally, skill-based bonus rounds can see you do all sorts of things. One example is a memory game, where the slot shows you a series of flashing dots.

At first, you’ll have an easier time remember which dots flash. But these games get tougher and tougher as more dots flash and really test your memory skills.

How Do Skill Games Differ From Regular Slot Machines?

A skill slot machine looks and plays much like standard real money slots. You probably wouldn’t be able to tell the difference between the two under most circumstances.

However, PA skill games feature more action than just spinning the reels. As described before, they see you doing everything from tapping symbols to playing fun bonuses.

Pace-O-Matic, one of the biggest manufacturers of such terminals, designs these games in a specific manner so as to avoid the normal gambling distinction.

After all, convenience stores, laundry mats, and bars can’t just offer a regular slot machine without a license. But they can feature a skill-based terminal without breaking laws—at least for now anyways.

These machines also give you more influence over the results. You might not be able to use your abilities to control 100% of the outcomes. However, you may have the ability to control approximately 3% of the action through skill.

The companies that develop PA skill slots aren’t required to divulge return to player (RTP). Their operators don’t need to offer this information either.

This aspect heavily differs from the regulated Pennsylvania gambling market. Land-based casinos must work with gaming regulators and offer RTP figures.

In What Ways Are Skill and Regular Slots the Same?

These games may offer the promise of skill-based gaming. In the end, though, they aren’t much different than standard slot machines.

Both use random number generators to determine the bulk of the results. Your odds of winning heavily rely on the luck associated with each spin.

For example, a PA skill slot might feature 90% RTP on the spins alone. But it would give you the ability to influence another 5% of the RTP through a bonus round.

With expert play, you could bump the payback up to 95%. Of course, this figure doesn’t differ much from casino slots, which typically offer between 90% and 95% payback.

Another similarity is the fact that the house wins in both cases. Some players mistakenly believe that they can win guaranteed profits if they play a skill-based game just right.

The truth, though, is that they don’t have any better chance of winning at a convenience store than they do a casino. The skill aspect is mostly an illusion that’s designed to float Pennsylvania gambling laws.

Of course, you can always get lucky with a skill-based or regular slot machine and win the jackpot. You’ll be relying on luck to win in both cases, though.

Skill Slots Are Quite Controversial

PAIG also takes exception to the fact that these games aren’t regulated. The Pennsylvania Gaming Control Board doesn’t have any jurisdiction over the makers or operators of skill terminals.

Furthermore, the bars, convenience stores, and restaurants that offer these machines don’t pay additional taxes. They only cover standard income taxes on profits.

Contrast this situation to the state’s 12 land-based casinos. Each must pay a licensing fee to operate along with a 54% tax rate on revenue.

This 54% rate makes Pennsylvania one of the toughest markets for earning casino gaming profits. Meanwhile, skill-based operators gain a competitive advantage by paying far less in taxes.

Will Pennsylvania Ban These Slot Machines?

PAIG has made some headway in bringing light to the hypocrisy surrounding skill-based gaming. The group is drawing more attention to their mission of getting these games shut down.

Police in certain Pennsylvania jurisdictions have seized these terminals during crackdowns on illegal gambling. Pace-O-Matic responded with a lawsuit against the Bureau of Liquor Control and Enforcement.

As of now, the two sides are embroiled in a murky legal battle where nobody has tasted victory yet. In January 2020, a Commonwealth Court judge ruled that Pennsylvania State Police can seize skill-based games while the matter is being decided in court.

This ruling doesn’t mean that authorities will seize relevant terminals all over the Keystone State. Instead, it just lifts a ban on the practice of doing so as law enforcement sees fit.

State police argue that the skill-based machines are only a small part of their crackdown on illegal gambling. They’ve only seized a few dozen of the 20,000 skill games operating throughout the state.

For this reason, the Commonwealth Judge saw no reason to ban such seizures. Of course, the games will be given back if Pace-O-Matic wins its case.

Neither side has presented a compelling argument on why these terminals should or shouldn’t be legal. But Florida might provide a preview on what will happen with this case.

The Sunshine State had a problem with pre-reveal slot machines running rampant throughout its borders. The Seminole Tribe, which holds a gambling pact with Florida, argued that pre-reveal games violated its agreement with the state.

After careful consideration, a judge decided to ban these machines. They ruled that pre-reveal slots fall under the definition of illegal gambling.

Pennsylvania doesn’t have a tribal gaming pact with any Native American tribes. However, it does have a licensed gambling market with 12 casinos.

The state may ultimately rule against Pace-O-Matic to preserve its good relationship with the licensed gambling establishments.

Conclusion

A PA skill slot differs slightly from casino terminals by including some element of skill. “Some” is the key word here, though, because these games don’t give you a true chance to overcome the house edge.

You might be able to influence 5% of the RTP through your abilities. But if the base RTP is 91%, you can only achieve up to 96% RTP.

Skill-based slots remain a mixed bag. They include different elements than a standard slot, but they’re also somewhat deceiving in how much control they give you over results.

PAIG is currently fighting against these terminals and believe that they constitute illegal gaming. The jury is out, though, on if these games will ultimately be outlawed.

If you want to make your local corner store owner really nervous, try asking them this question – “How do those gaming machines work?” When I asked the owner of a store that I frequent, I got a very nervous “Why do you ask?” in response. It seems almost every independently run convenience store I go in has a small bank of video gaming (gambling) machines, also known as eight-liners, tucked away somewhere in the store. I got curious about all these machines and thought I’d write a post to share what I found out. This is an abnormal post for this site but falls under the “Dad is Learning” philosophy of living.

A BIG Loophole

Laws on video gaming machines vary from state to state. Texas is surrounded by states that allow gambling, leading to a high number of attempts to circumvent laws against gambling in Texas. Section §47 of the Texas Penal Code defines gambling but in §47.01(4) you will find the provision that has been litigated for over a decade that excludes “gambling devices” that are defined as “any electronic, electromechanical, or mechanical contrivance designed, made, and adapted solely for bona-fide amusement purposes if the contrivance rewards the player exclusively with non-cash merchandise prizes, toys, or novelties, or a representation of value redeemable for those items, that have a wholesale value available from a single play of the game or device of not more than 10 times the amount charged to play the game or device once or $5, whichever is less.” This is often referred to as the “fuzzy animal” defense, derived from the claw games you see in restaurants and elsewhere.

The loopholes in the law are numerous. The Dickinson County Police have posted an advisement from the Galveston County District Attorney’s office about this matter. Here are a few noted exceptions quoted from that site:

• Regarding the “charitable sweepstakes” issue: Typically this is done by some type of an association being made with the charity group by the owner of the 8-liners. The players put their money into the machine as a “donation” and you are allowed to play the game for free. At the end of the day the Charity may pay the owner of the machines $.90 out of every $1.00 collected. This is not an exception to the law.
• The use of “door prizes” to attract customers is presumed to be legal, provided the players are not given additional entries into the door prize drawing based on the number of credits they win on a game or device.
• The following could result in prosecution – Any award of non-cash merchandise prizes, toys, or novelties that have a wholesale value available from a single play of the game or device of more than 10 times the amount charged to play the game or device once, or $5.00, whichever is less. The accumulation or stacking of credits/tickets toward the purchase of more valuable prizes will be considered to be a violation of the law if the accumulated credits exceed the maximum value for a prize which can be awarded from the machine as noted above. The wholesale value of the prize, not the ticket, available from a single play, must be no more than 10 times the amount charged to play or $5.00, whichever is less.

The Difficulty of Enforcement

Gathering enough evidence to prosecute illegal gaming operations costs thousands of dollars and numerous man hours in already stretched thin police departments and district attorney offices. The machines are fairly portable and can be removed by simply unplugging them and wheeling them away on a dolly. Operations have been known to shut down and move overnight when there is suspicion of investigation. Due to the high volume of money involved, a few police officers have also been bribed to tip off the owners of illegal operations as occurred in Tarrant County in 2008.

The Meadowbrook Shopper, a neighborhood publication in Fort Worth, featured an interview with Tarrant County Sheriff Dee Anderson in the January 24, 2013 edition where he spoke about eight-liners in Fort Worth. Anderson said, “The machines have almost been eradicated in the county. At one time, we would have thousands of them in storage. Now, thanks to civil forfeiture through the Justice of the Peace Courts, we can seize them and have them destroyed within two weeks. Unfortunately, we’ve been so successful the machines are moving into smaller cities.”

Many may not have issue with the morality of the machines but call authorities when a loved one loses large amounts of money to unregulated gaming machines. Anderson said, “More-and-more we will get calls from concerned relatives when their parents, or older relatives on fixed incomes, get scammed out of all their money involving eight-liners. Believe me, it’s a big problem. There are usually drugs associated with these operations. It’s not uncommon for us to seize 20-40 thousand dollars after raiding just one small operation.”

Illegal gaming operations are also an easy target for criminals. There is typically a large amount of cash involved and operators won’t contact the police due to the illegal nature of their activities. This Star-Telegram article from 2013 details a Fort Worth man who was ambushed, robbed, and murdered in September 2013 outside of an illegal gaming operation.

Why Was I Curious?

As I mentioned at the beginning of this post, I frequent two convenience stores that have a few of these machines. Let me be clear…I don’t play. These aren’t the illegal gambling dens that involve so much of the trouble documented in this post, but they are quite possibly operating in a grey area of the law. One store is close to my office and every time I have been in that location there is at least one person settled in and poking away at a machine. As several articles report, it is quite often people on a fixed-income, the unemployed, or the elderly who play on these machines.

A screenshot of the completed auction listings for the gaming machines.

My curiosity was also peaked by an auction on LonestartAuctioneers.com this week. I follow the site regularly as part of my side hustle but was surprised to see gaming machines being auctioned off by the Texas Facilities Commission. I wasn’t familiar with this agency, but part of their responsibility is the oversight of surplus property programs. The machines in the auction went for an average selling price of $300 to $400, plus 10% buyers premium. The 31 machines in the auction fetched a total of $8,540 plus buyers premium.

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I follow the opinion of most financial advisers, who believe gambling in it’s various forms is a tax on the poor and people who can’t do math. Dave Ramsey offers up great insight on the matter of gambling in “Gambling Offers False Hope.” There is a reason the big casino across the border builds a new hotel building every year. And there is a reason individuals are willing to risk a $4,000 fine and maximum sentence of a year in jail for running illegal gaming machines. Gambling is a sure-fire money maker for the owner.