Adding skill-based gaming experiences to slot floors is one of several initiatives that casino operators are taking to engage a broader demographic of players Just a few short years ago, skill-based games were developed to offer casino patrons a chance to influence the outcome of a slot-like game through expertise of play; essentially emulating the play experience of traditional video and arcade games where the most skilled players garner the highest scores.
The Pennsylvania Commonwealth Court confirmed in a ruling on Nov. 20 that video game machines manufactured and distributed by the company Pace-O-Matic (POM) under the name “Pennsylvania Skill” are considered slot machines under Pennsylvania law. However, Judge Patricia McCullough did not state that POM was in violation of the Gaming Act. Per her ruling, the law does not apply to unlicensed slot machines.
This is the latest decision in a lengthy battle within the Commonwealth over whether or not these skill-based games are legal.
POM had argued that their machines were a “game of skill” and therefore not a slot machine under PA law. The Commonwealth of Pennsylvania, Department of Revenue, and the City of Philadelphia are defendants in the lawsuit.
Surprisingly. Pace-O-Matic lawyer Matt Haverstick of Philadelphia-based law firm Kleinbard said they were “pleased” with the ruling. He added:
“We expect to have a trial or hearing just like in Beaver County where we demonstrate under the Crimes Code we are predominately skill. We are prepared to do it and look forward to putting on the case and are confident on how it is going to turn out. We have a legal machine and at least one court has upheld we are a legal machine. We expect soon we’re going get a bigger broader ruling that we are a legal machine.”
Seizure of skill game machines at heart of court case
On June, 8 2018, POM filed a petition for review seeking a judgment and injunctive relief. POM says that from March 2017 until June 2018, the City of Philadelphia conducted 11 separate seizures of machines. City law enforcement also arrested employees and seized funds at each location. POM alleges that the City’s seizures of the POM games was illegal. Additionally, POM contended the seizures interfered with the Department’s mission to fairly, efficiently, and accurately administer the tax laws and other revenue programs of the Commonwealth.
Parx calls to confiscate
Parx, which was not listed as a defendant in the case, called the ruling “a blow to illegal gambling and a victory for families and communities in Pennsylvania.”
However, Judge McCullough did not refer to Pennsylvania Skill games as “illegal gaming devices.”
Parx asserts that the Commonwealth Court’s clarification that “Pennsylvania Skill” games are “slot machines” under PA law provides clear legal jurisdiction for law enforcement at the state and local levels to confiscate the machines and prosecute those responsible for manufacturing, distributing, leasing or owning the machines.
Thomas C. Bonner, Chief Counsel for Parx Casino commented:
“We know that illegal slot machines and full-blown illegal casinos are popping up all over Pennsylvania. We know that minors are gambling, and we know that the state Lottery is losing tens of millions of dollars that should be going to our seniors because of these illegal machines. It’s time to confiscate these machines and put these illegal casinos out of business.”
A day after releasing the press release, Parx sent out a notice to disregard the news release.
Haverstick responded to Parx now-retracted press release with:
“We were puzzled when we saw Parx, a non-party, jump into the fray and then mangle the opinion. Parx embarrassed themselves. They are not doing any favor to the thousands of Pennsylvanians, the business owners who rely on it for revenue, the people who manufacture the games, or the people who play for entertainment. These are legal games.”
Vegas Skills Slots
What’s next?
Pennsylvania Skill machines are usually found at bars, social clubs, and corner stores. Don’t expect them to immediately disappear overnight.
A Beaver County court deemed Pennsylvania Skill Games legal in a 2014 decision. Since then, there have been a number of House Gaming Oversight Committee Public Hearings debating their legality. The Pennsylvania Lottery also waged a very public campaign to push to explicitly outlaw the machines with new legislation.
Here’s what Haverstick said is next for POM:
“We expect to have a trial or hearing just like in Beaver County where we demonstrate under the Crimes Code we are predominate skill. We are prepared to do it and look forward to putting on the case and are confident on how it is going to turn out. We have a legal machine and at least one court has upheld we are a legal machine. We expect soon we’re going get a bigger broader ruling that we are a legal machine.”
If the past is any indication, there will be more days in court for POM who will fight to keep their machines operating as usual.
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The era of the pump-and-pull slot machine may soon be at an end. A number of new, innovative products are landing on casino floors, and developers and casinos are showing a willingness to give them a shot.Casinos are slow to change, so it won’t happen overnight. But 50 years hence, we may look back at this period as the dawn of a new era in slot machines.
The old way of doing things with slots
The game mechanics of the slot machine have undergone very few changes since Charles Fey invented the reel-style slot machine as we know it in the 1890s.
Slots have certainly improved both aesthetically and in functionality over the years. Advancements include the electromechanical machines of the 1960s, the video slot machines of the 1970s, and the dawn of the online slot in the 1990s. Yet, whether it was 1904, 1954 or 2004, it was still a slot machine.
At the end of the day, players are still trying to accomplish the same thing as the slot players of the 1900s: Get lucky and hope the machine aligns different rows and lines of symbols into winning combinations.
That appears to be changing.
Traditional slots are beginning to give way to arcade-style controls and games with far more decision-making on the part of the player.
Skill-based games in Atlantic City
Skill-based games have been around for a few years. But they always felt a few years off in the future, not quite ready for primetime. That wasuntil G2E 2016, when several manufacturers displayed some impressive wares on the showroom floor.
Soon thereafter, skill-based games made their casino debut. GameCo machines began to appear on the slot floors of Atlantic City casinos, first at Harrah’s, Bally’s and Caesars, and later at Tropicana.
GameCo started with what is perhaps its most hardcore game, Danger Arena. It’s a first-person shooter game that uses a video game-esque remote control.
Since the launch of Danger Arena (which has since been revamped and relaunched as Danger Arena Reloaded), GameCo has added several other titles with broader appeal.
- Pharaoh’s Secret Temple – A match-three puzzle-solving game in the vein of Candy Crush.
- Nothin’ But Net – A true skill-based game with gameplay akin to basketball or golf video games where players are tasked with pressing a button at a specific time for accuracy. According to GameCo CEO Blaine Graboyes, the game has a payback rate of over 100 percent for skilled players.
Love video games? Try Danger Arena, Pharoh's Secret Temple, and Nothin' But Net by @GameCoInc! https://t.co/gO1Ip8hpRC#RoyalFlush17pic.twitter.com/tEPkLebtda
— Tropicana AC (@TropicanaAC) May 13, 2017
But bringing skill-based gaming to casinos hasn’t been without some setbacks for GameCo.
According to local press, Harrah’s, Bally’s and Caesars have removed Danger Arena and Pharaoh’s Secret Temple from the floor. All three GameCo games are still available at Tropicana and are migrating north to Foxwoods Resort Casino in Connecticut.
[geoip2 region=NJarea][i15-table tableid=29874][/geoip2]
Interactive gaming tables in Nevada
While GameCo makes progress on the East Coast, Gamblit Gaming is building its own skill-based gaming empire in Nevada.
Interestingly, Caesars’ casinos are once again the conduit.
What Are Skill Based Slot Machines
After debuting at Planet Hollywood, Gamblit’s interactive gaming tables are now available on the floor of Harvey’s Lake Tahoe. Currently the tables, which support two to four players, feature only two Gamblit titles:
- Gamblit Poker
- Cannonbeard’s Teasure
Packaging skill-based gaming
Skill Based Gaming Machines
Unlike GameCo’s machines that are housed in traditional cabinets, Gamblit’s interactive tables are more futuristic and likely more intimidating to some casino-goers. This represents two dramatically different models within the small skill-based gaming world.
Does a company try to attract the customer of the future — millennials and gamers? Or, does it create a gaming experience with wider appeal?
On the one hand, there’s GameCo, which houses a modern game inside a familiar package. Graboyesrecently told esportsinsider.com:
“A key strategy for GameCo was building on existing slot machine technologies and this has proven to be a key factor in our speed and agility. By implementing new content on accepted hardware and software, we’ve provided a “plug-and-play” replacement for slot machines that appeal to a new audience of Gamers.”
On the other hand, there’s Gamblit and its more modern, but less familiar product, targeting the next-gen casino customer.
Per a press release from Gamblit:
“Each gaming terminal offers a unique, multi-player – multi-game machine with access to a shared 42’’ touch screen, plus a USB charging port, purse hook and two cup holders for each player.”
What happens next for skill-based gaming?
According to Graboyes, the appeal of skill-based games depends on the title. Interestingly, however, the average user falls outside the “millennial” demographic.
Skill Based Casino Games
“Danger Arena players tend to be male, and 60 percent are under 40 years old,” Graboyes said in an interview with esportsinsider.com. On the other hand, Pharaoh’s Secret Temple attracts a more casual gamer, who swings a bit older and more female.
But as Graboyes noted in the esportsinsider.com interview, for GameCo, skill-based games aren’t about bringing in millennials. They’re about bringing in gamers. To accomplish this, Graboyes believes his company must produce different content to appeal to different tastes.
So whether it’s Gamblit’s touch screen, multi-player tables, or GameCo’s arcade-esque games, there doesn’t seem to be a one-size-fits-all in skill-based gaming. The future is wide open.