What Are Skill Games — And How Are They Regulated Differently From Games of Chance?

Skill games have become one of the most debated parts of Pennsylvania gaming law. These machines often look like slot machines, but their operators argue that a player’s ability affects the result. That difference has created years of legal questions for businesses, manufacturers, and property owners. Because the rules are changing quickly, Pennsylvania gaming law lawyers can help businesses understand where skill games fit under current law.

What are skill games?

A skill game is usually a pay-to-play machine or device that gives a player a chance to win something of value. The main argument behind these games is that the result is not based only on luck. Instead, the player may have to use memory or timing to affect the outcome.

That is what separates skill games from ordinary games of chance. In a pure game of chance, the player cannot do much to change the result. The outcome depends mostly on luck. Slot machines are the most familiar example.

In real life, the line between skill and chance is not always simple. A game may include some player choice, but it may still look and operate much like a gambling device. That is why courts and regulators often look at the full design of the game instead of relying on the name alone.

Why has Pennsylvania treated skill games differently?

For years, many skill-game operators argued that their machines were not illegal gambling devices because skill played a major role. Some earlier court rulings supported that position. As a result, these machines spread through bars, convenience stores, and other businesses.

That created a major gap between regulated gaming and skill games. Licensed casinos and gaming operators had to follow detailed rules. Skill-game businesses often claimed they were outside that system.

That difference mattered. Regulated gaming usually involves licensing, taxes, and oversight. It may also involve age controls and responsible-gaming rules. When a machine is treated as unregulated, those same requirements may not apply in the same way.

What changed in Pennsylvania?

Pennsylvania’s legal landscape changed in 2026 when the Pennsylvania Supreme Court addressed whether certain skill-game machines fit within the definition of slot machines. The Court concluded that the devices at issue were slot machines under Pennsylvania law.

That decision is important because Pennsylvania’s Gaming Act includes the terms “skill slot machine” and “hybrid slot machine.” In plain language, the Court said a device does not escape the slot-machine rules just because skill affects the outcome.

The Court also stayed its order for 120 days. That means the decision did not take immediate full effect against owners and operators who had relied on earlier case law. It also gave lawmakers time to decide whether Pennsylvania should create a separate regulatory system for skill games.

Are skill games still regulated differently from games of chance?

The answer depends on what kind of device is involved and what happens next. A traditional game of chance is generally prohibited unless it is authorized under Pennsylvania’s regulated gaming system or another law. After the Supreme Court’s decision, certain skill-game devices may also be subject to those laws.

That does not mean every game involving skill is automatically illegal gambling. It also does not mean every amusement device is treated like a casino slot machine. The legal issue is more specific. Regulators and courts look at whether the device accepts payment, offers a prize, and fits within the laws that govern gaming devices.

This is why labels can be risky. Calling a product a “skill game” does not settle the legal question. The actual design, payout structure, and location of play can matter.

Why does the difference matter to businesses?

The difference can affect whether a business needs a license. It can also affect contracts, placement agreements, and enforcement risk. A convenience store owner may see the machine as a small side business. A regulator may see an unlicensed gaming device.

Businesses also need to think about timing. Pennsylvania lawmakers may create new rules for skill games. Those rules could include licensing requirements and operating limits. They could also affect where machines may be placed.

Until the law becomes more settled, businesses should be careful about assuming that older guidance still applies. What may have seemed low-risk before the Supreme Court’s ruling may now require a much closer review by Pennsylvania gaming law lawyers.

How can Hensel Grad help?

Skill-game regulation is not just a technical issue. It can affect whether a product can operate, where it can be placed, and what approvals may be needed. Hensel Grad helps entities and individuals involved in all aspects of skill gaming –  from location establishments, to operators to game manufacturers and other interested parties – with understanding changing laws, strategizing to maximize returns, and meeting legal and regulatory requirements.

If your business is involved with skill games or another gaming product in Pennsylvania, call Hensel Grad at (215) 422-3745 or fill out our online contact form to speak with Pennsylvania gaming law lawyers about your next step.