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The debate over skill machines in Pa., as lottery claims more than half a billion in losses

Officials with the Pennsylvanians Against Gambling Expansion say every dollar pumped into these unregulated machines comes at the expense of a needy Pa. senior.

PENNSYLVANIA, USA — An updated analysis from the Pennsylvania Lottery revealed that "skill machines," often found in bars, fraternity clubs, and retailers, have grown dramatically in number since 2017.

It also estimates losses from skills games, which are not regulated by the state, at $650 million.

Officials with Pennsylvanians Against Gambling Expansion (PAGE) say every dollar pumped into these unregulated machines comes at the expense of a needy Pennsylvania senior.

“The Lottery funds Meals on Wheels, affordable prescription drugs right to the doctor, tax abatement, rental support. Basically, they help seniors live longer, live better, and live at home," PAGE Spokesperson Pete Shelly said. "All that's on the table.”

Shelly also says skill games generate more crime and are harmful to kids.

“They're not safe. They have no safeguards," Shelly said. "The safeguards in a casino versus the lack of say court safeguards surrounding these machines could not be starker."

The big argument at the center of the controversy is whether these machines are legal or not. Shelly says many officials and agencies, refer to them as "illegal" as the Pa. State Police did in 2019.

Pace-O-Matic Inc., a major player in skill games, says they’re not illegal like many claim, citing a 2014 Beaver County Court ruling.

“They're not illegal," Pace-O-Matic Chief Public Affairs Officer Mike Barley with "Otherwise, how would there be so many out there?”

Barley says his company's machines benefit the state, which set a new record in Pa. in 2021 with more than $4.7 billion from gamblers.

“Every dollar that's made with seal games, over 92% of it is staying in the Commonwealth, staying in small business, and fraternal clubs," Barley said. "It's literally been a lifeline, especially through COVID.”

Legislation in the Pa. house and senate aims to regulate the practice.

At a press conference in Lycoming County, state senator, and bill sponsor Gene Yaw said, “Regulating and taxing skill games not only supports small businesses but will also bring in annual revenue of more than $300 million to the state.”

Still, PAGE officials say that regulations should not be the first priority.

“They should be legalized before you start to talk about regulating them,” Shelly said.

Pace-O-Matic of Pennsylvania brought forth a lawsuit in April of this year, accusing the Pennsylvania Bureau of Liquor Control Enforcement and the Pennsylvania Gaming Control Board of targeted harassment, collusion, and conspiracy.

Both Barley and Shelly confirmed to FOX43 that Shelly has also been personally named in a lawsuit.

Download the FOX43 app here.

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