Miele to shut down Pennsylvania skill game machines
Pennsylvania authorities warn that unplugging the devices may not be enough to avoid enforcement action.
Key Takeaways
- Miele Manufacturing, one of Pennsylvania’s largest skill-game machine suppliers, will disable its devices during its operating divisions’ next collection visit.
- The move follows a state Supreme Court ruling that classified skill-game machines as gambling.
- Miele distributes Pennsylvania Skill cabinets and works with Pace-O-Matic, which supplies the gaming software. Affiliates Miele Amusements and Pennsylvania Amusements operate machines in convenience stores, bars, restaurants and other small businesses.
- Attorney General Dave Sunday warned that inactive or unplugged machines could still trigger enforcement, and urged business owners to contact distributors to arrange removal.
U.S.- Miele Manufacturing, one of the largest suppliers of skill-game machines in Pennsylvania, plans to stop operating its devices as the state prepares to enforce a Supreme Court ruling that classified the machines as gambling. The company has informed host businesses that its operating divisions will disable the machines during their next collection visit, ahead of the state’s October 13 enforcement deadline.
Miele distributes Pennsylvania Skill cabinets across the state and works with Pace-O-Matic (POM), which supplies the gaming software. Its affiliated companies, including Miele Amusements and Pennsylvania Amusements, also operate machines installed at businesses that are found in a variety of locations, including convenience stores, bars, restaurants and other small businesses.
It remains unclear whether the equipment will also be removed from the businesses where it is currently installed. The Pennsylvania Attorney General Dave Sunday has warned business owners that inactive or unplugged machines could still result in enforcement measures and urged them to contact distributors to arrange for removal.
The machines had been in a legal grey area for over a decade, but the Supreme Court has now ruled that skill game terminals constitute gambling, meaning they cannot operate under the existing framework.
Proposal for skill game machines legislation
Republican Rep. Russ Diamond of Lebanon County has said that he is preparing legislation that would allow skill games in clubs, liquor-licensed restaurants and bars, and qualifying truck stops, with a maximum of five machines per location. The proposal would tax skill game revenue at 20 per cent while reducing the tax rate on casino slot machines and online casino games to 49.9 per cent.
The legislation would also direct gambling revenue to the Race Horse Development Trust Fund, compulsive gambling treatment and the state’s General Fund. It would establish an annual gaming dividend for eligible homeowners that would increase alongside legal gambling revenue, potentially expanding property tax relief to 96 per cent of the state’s homeowners.
Frequently asked questions (FAQs)
- Why is Miele Manufacturing shutting down its skill-game machines in Pennsylvania? A state Supreme Court ruling classified skill-game machines as gambling, so Miele is disabling its devices ahead of the state’s enforcement deadline.
- Is it enough for Pennsylvania business owners to unplug skill-game machines? Possibly not. Attorney General Dave Sunday warned that inactive or unplugged machines could still result in enforcement measures, and recommended contacting distributors to arrange removal.
