By Liliana Shadlow · Staff Writer
Recent state action prohibiting most businesses from operating “skill games” machines raises questions about the economic and moral implications of unregulated gambling, according to Grove City College professors.
Skill games, previously prevalent in many convenience stations and even nonprofits, have been classified as a kind of video game gambling.
Before June, Pennsylvania laws classified skill games as separate entities from regular gambling slot machines. According to an article by 2822news, while slot machine players rely on a “math equation or algorithm that’s in the game” for earnings, skill game fanatics rely on their own “skill,” even in something as simple as pressing a button to win.
Under this classification, having a skill game in an establishment did not require a license or registration, and for many small business owners it provided a semi-reliable means of passive income.
However, in June, the Pennsylvania Supreme Court ruled that skill games are, in a legal sense, the same as slot machines. The deadline for businesses to remove the machines or obtain a license to operate them was Oct. 13, after which all unlicensed skill games were categorized as illegal.
Now businesses that want to keep their skill game machines in operation must apply for a license. For smaller establishments with a limited number of machines, paying for this gambling license would tank any profits the machines could be expected to make.
Shawn Ritenour, a Grove City College economics professor, spoke on the impact of these new regulations for small businesses.
“With added regulation comes added cost. If this cost is high enough, businesses just won’t have (skill game machines),” Ritenour said.
Ritenour said the immediate effects of the removal of skill game machines would include reduced net income for businesses and decreased traffic into the store, which would lower sales overall. He also discussed the economic implications of setting a precedent with high government regulations.
“In general, the more regulation we have, the less prosperous we are,” Ritenour said. “It’s hard to reduce the reach of the government.”
Wayne Biddle, a Grove City College business professor, highlighted the importance of maintaining high ethical standards within business to prevent the need for government overreach in the first place.
“The myriad of laws that need to be followed by businesses can be seen as an invasive arm of government control,” Biddle said. “But as a business owner, you need to think: do you want to generate profit from a game of chance that could prey on an individual’s weaknesses?”
While currently illegal, skill games are far from leaving Pennsylvania, and legislators are still trying to agree on a reasonable tax rate for this new type of gambling. State police have said they will provide a grace period for businesses if they need an extended deadline for the physical removal of the machines.
According to Patriot News, police will “provide a timeline for completion of removals (of skill games) that is proportional to the amount of equipment promised to be removed.”
