Pace-O-Matic (POM), a Georgia-based skill games manufacturer, has responded to the claims Presque Isle Downs made earlier in the week about skill machines. The Erie casino said that the untaxed skill games is putting the property’s long-term sustainability in jeopardy.
POM raised several arguments to the contrary in an email to PlayPennsylvania. The machines are currently unregulated, however, POM and lawmakers, which includes Gov. Josh Shapiro, are working on coming up with a fair tax rate. The Commonwealth Court ruled the machines as legal in December 2023.
POM’s argument against Presque Isle Downs
Skill games are heading towards taxation and regulation, which means they are here to stay. They have been operating in the state for 10 years.
POM has made clear that skill games do not compete with casino slots, despite what properties say. It also brought up 10 facts about skill games and Presque Isle Downs in its email to PlayPennsylvania:
Fact: Skill games have been legally operating in Pennsylvania since 2015, meaning Presque Isle has been prosperous for most of the time skill games have been operating.
Fact: Presque Isle states that skill games are like slot machines. That is false. Several state courts, including the Pennsylvania Commonwealth Court, have agreed that they are games of skill, NOT games of chance like slot machines. Skill games take time and patience to play – the experience is not just pushing a button and hoping for luck like slot machines.
Fact: Presque Isle notes that skill games operate across the state. That one is true. So why then aren’t other casinos in Pennsylvania on the verge of closing? According to the American Gaming Association, which is run by the casino industry, Pennsylvania gaming revenue is second only to Nevada, and Pennsylvania’s growth in gaming revenue exceeds the national average.
Fact: Overall, Pennsylvania casinos break previous year records every month.
Fact: According to data from the Pennsylvania Gaming Control Board, Presque Isle’s 10-year slot machine revenue growth trails the state’s by 30%, and its 10-year table game revenue growth rate trails the state’s by 25%. The numbers especially sagged in 2023, which coincides with the soaring growth of online slots, which became available starting in 2020.
Fact: PlayPennsyvania.com, which is a “comprehensive online gambling resource that provides unbiased reviews and industry-leading news,” has reported that Presque Isle “had been losing business in recent years due to competition from Ohio casinos.”
Fact: PlayPennsylvania.com adds that many Presque Isle slot players “dislike the smell of smoke, which at this place is described as everywhere, including the nonsmoking sections.”
Fact: Google reviewers give Presque Isle an average rating of 3.8 out of 5. Seneca Allegheny Casino in New York gets a 4.3 average rating and is an hour’s drive away.
Fact: Churchill Downs, owner of the casino/horse racing venue, has said horse racing is a loser for raising revenue. Helping the horse racing industry was one of the main reasons casinos were supposed to exist in the state. Why isn’t the host of the world-famous Kentucky Derby doing more to help horse racing in Pennsylvania?
Final Fact: Presque Isle’s potential visitors can play slots online at home without being bothered by smoke. They can easily travel to Ohio or New York for a better experience. The casino’s problems are that it is not the most appealing place for gamblers, which has nothing to do with skill games.
POM is seeking regulation
Despite skill games being legal, they are untaxed and unregulated within the state. However, POM has been seeking regulation for years.
POM favors a tax structure headed by Pennsylvania Senator Gene Yaw (R-23), who formally reintroduced his 16% proposal last month. However, that is far off from what other lawmakers believe the games should be taxed.
Gov. Shapiro advocated for a 52% tax on skill games during his FY 2025/2026 budget address in February.
There have been a number of lawmakers in of skill games legislation, despite the Pennsylvania Supreme Court determining the legality of the machines at some point in the near future.
Assuming skill games remain legal, the games will be part of the gaming sector of Pennsylvania. The tax structure remains the biggest mystery.
