Skill games decision in Pa. could ban arcade games without legislative regulation

By Emily Scolnick, Pennsylvania Capital-Star
July 7, 2026

Emily Scolnick is a 2026 Dow Jones News Fund intern at the Pennsylvania Capital-Star. 

The Pennsylvania Supreme Court declared skill games unlawful last month, throwing thousands of businesses across the state into uncertainty as they await guidance from the legislature.

But the ruling might have also put popular family games on the wrong side of the law.

Last month, the court struck down what it called two “deeply flawed” lower court rulings that had allowed skill game machines to spread across the commonwealth without restraint from law enforcement or gaming authorities.

Skill games typically resemble slot machines found in casinos, and players can bet to win jackpots from games based on chance. However, if a player loses, they can win back their money by successfully completing a complex puzzle.

While the ruling primarily deals with skill game machines that allow players to win jackpots, Justice David Wecht said in his opinion for the court’s 4-2 majority that enforcement hypothetically could stretch to traditional arcade games, often found at family entertainment centers like Chuck E. Cheese or Dave & Busters.

Pace-O-Matic, the company that produces skill game software, argued in court that if their machines are considered a form of gambling, then “all ordinary ticket-generating games at amusement businesses” — like Skee-Ball and other arcade games that require skill to win — would also be illegal.

The commonwealth’s attorneys called it the “Chuck E. Cheese defense.”

Wecht noted that previous cases established that skill games that awarded prizes “worth less than the cost of play” were not gambling devices.

However the court acknowledged that “as a theoretical matter, this sort of amusement device may qualify” as a skill game. This puts machines found at Dave & Busters, Chuck E. Cheese, and arcades at risk of bans.

“Unless there’s a change in the law, those games are gambling devices,” said Bruce Antkowiak, a law professor at St. Vincent College.

Pinball, Skee-Ball, golf simulators, and claw machines are among the games that could face enforcement.

In a statement, Pace-O-Matic urged lawmakers to regulate and tax skill games to ensure they, and other forms of gaming, can remain legal.

Any new tax would bolster Pennsylvania’s revenue, forcing lawmakers to consider skill game legislation as they negotiate Pennsylvania’s fifth late budget in a row. Antkowiak said the financial incentive does mean arcade games won’t be let off the hook entirely. They just may not be the police’s first targets.

Lawmakers have debated whether potential tax revenue should go into the state’s general fund or support transportation, as well as how much any tax rate should be.

In his budget proposal, Gov. Josh Shapiro called for a 52% tax, which would generate over $2 billion in annual revenue.

Competing tax proposals in the Republican-controlled Senate would tax the machines at either 16% or 35%. A separate bipartisan bill would put a $500 monthly fee on individual skill game machines.

On June 30, the budget deadline, House Minority Leader Jesse Topper (R-Bedford) said many of the policy issues splitting the state legislature — including skill games — won’t be found in this year’s final spending plan.

Bipartisan Senate– and House-sponsored legislation aiming to regulate and tax skill games has remained in committees in each chamber since its introduction.

Wecht wrote in the opinion that if the enforcement ends up affecting arcade games, “then so be it.”

“We cannot shy away from the language of a statute merely because its application may have undesirable consequences in some hypothetical future context,” he added.

Courts will consider legal challenges “should law enforcement officers begin conducting raids of children’s amusement establishments and seizing Skee-Ball machines and stuffed animals,” Wecht said.

However, state Attorney General Dave Sunday’s office wrote in a statement that while it will approach enforcement of the ruling on a case-by-case basis, its focus “remains on games involving financial gain” — so neighborhood arcades would still be safe.

Antkowiak also said the impending legislative battle over skill game regulation, coupled with police stations likely prioritizing more serious crimes, will make enforcement harder.

“It’s going to be very difficult to see a mass raid on a Chuck E. Cheese,” he said.

Pennsylvania Capital-Star is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Pennsylvania Capital-Star maintains editorial independence. Contact Editor Tim Lambert for questions: info@penncapital-star.com.