Pennsylvania’s rapidly expanding skill games industry is once again at the center of a major regulatory push, as lawmakers consider new legislation aimed at bringing the machines under casino-style oversight while addressing growing concerns around consumer protection, accessibility, and problem gambling risks.
House Bill 2557, introduced by Rep. Ben Waxman (D-Philadelphia), outlines a comprehensive framework that would regulate so-called “covered devices” if the state ultimately moves to authorize the sector. The proposal reflects mounting pressure from policymakers who say skill games have operated for too long in a legal grey area between gaming and gambling.
Skill games have surged in popularity across Pennsylvania in recent years, appearing in convenience stores, gas stations, bars, and other retail locations. While operators argue the machines involve a degree of skill, critics say they function much like slot machines but without the safeguards required in licensed casinos.
Waxman has positioned the bill as a consumer protection measure rather than a straightforward legalization effort.
“As discussions continue over the potential regulation of skill games in Pennsylvania, we must ensure that any authorization is paired with meaningful consumer protections,” Waxman wrote. Skill games operate in a manner similar to slot machines, but without the safeguards required in regulated casinos, and they present a heightened risk to problem gamblers and vulnerable populations due to their accessibility and speed of play.”
Rep. Ben Waxman (D-Philadelphia)
Casino-Style Oversight for Player Safeguards
At the core of the proposal is a move to place skill games under the oversight of the Pennsylvania Gaming Control Board, bringing the devices closer in line with regulated casino gambling.
All machines would be required to connect to a centralized monitoring system capable of tracking wagers and payouts in real time. The system would also support enforcement of player protections and compliance rules across the state.
The legislation introduces a suite of mandatory safeguards, including daily loss limits, enforced breaks during play sessions, slower gameplay pacing, and restrictions on machine design intended to reduce compulsive play patterns. It would also extend Pennsylvania’s existing self-exclusion program to cover skill game devices, allowing individuals to voluntarily block access across both casino and skill game environments.
A key addition is the prohibition of deceptive design features, reflecting concerns that some machines may be structured to encourage continuous or accelerated play.
Location Limits and Local Control Powers
One of the most significant elements of HB 2557 is where skill games would be allowed to operate.
The bill would ban machines from convenience stores and gas stations, which currently represent some of the most widespread access points for skill games in the state. Critics have argued that these locations make the devices too accessible, particularly in communities with limited access to regulated gaming environments.
Instead, skill games would be restricted to liquor-licensed establishments and approved adult gaming areas limited to patrons aged 21 and over. The proposal would also cap venues at five machines each.
Beyond statewide restrictions, the bill would give municipalities the authority to further limit or prohibit skill game placement within their jurisdictions, adding a local control layer that does not currently exist in the unregulated market.
Revenue Controls and the Future of Regulation
The proposal also introduces a framework for how skill game revenue could be managed if the industry is formally legalized. A portion of tax revenue would be directed toward gambling addiction treatment and prevention programs, aligning with funding models already used in Pennsylvania’s regulated casino sector.
The broader legislative effort comes amid ongoing debate over how to handle skill games, which continue to generate significant revenue while operating outside the state’s casino regulatory system. Supporters of reform argue that formal oversight is necessary to close consumer protection gaps, while opponents warn that overregulation could push activity further into unregulated or illegal channels.
The bill’s path forward remains uncertain. Pennsylvania has seen repeated attempts to regulate skill games in recent years, each facing political resistance and legal complications. A pending court decision on how skill games are classified could further influence the debate, potentially reshaping both the urgency and direction of future legislation.
For now, HB 2557 stands as one of the most detailed blueprints yet for bringing Pennsylvania’s skill games market under formal control, should lawmakers choose to move forward with legalization.
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