Parx Casino Filed a Lawsuit Against Skill Games Distributor Pace-O-Matic

Philadelphia’s largest gambling complex Parx Casino has picked up a fight against the United States’ leading producer of skill games, Pace-O-Matic, by filing a lawsuit against the Georgian company.

Pace-O-Matic Skill Game Machines Allegedly Comprise Illegal Gambling

Greenwood Racing Inc., which is the owner of Parx Casino, has filed a lawsuit against Pace-O-Matic with allegations of unfair competition.

According to Greenwood Racing, the skill game machines that Pace-O-Matic distributes are in fact illegal gambling machines. The machines, which are usually located in bars, restaurants, gas stations, and corner stores are not licensed, they do not bring any revenue to the state coffers and steal away gambling revenue from the licensed gambling operators that pay heavy taxes.

In its legal claim, Greenwood Racing has pointed out that the Pace-O-Matic video gaming machines, which are duped legal skill game machines, are in practice slot machines. This means that they are being operated outside of the regulations on gambling stipulated by the state.

The lawsuit was filed on October 7 at the Philadelphia Court of Common Pleas. Besides unfair competition, the lawsuit includes claims for misleading marketing as per the Lenham Act, illegal interference, and negligence.

Meanwhile, there are other ongoing court proceedings at the Commonwealth Court following a case submitted by Pace-O-Matic, which is trying to get a court decision that its skill game machines are not in breach of any state regulations and are in fact legal.

These two lawsuits scratch the surface of Pennsylvania’s unclarified legal regulations regarding the so-called games of skill, which directly concern the machines that Pace-O-Matic produces.

Skill Game Machines Are a Long-Standing Problem

Already in August, the casino leader’s organization Pennsylvanians Against Gaming Expansion (PAGE) warned the state of Pennsylvania that tougher measures against skill game machines must be introduced.

One of the main arguments coming from the organization is that these games are seriously harming the Pennsylvanian budget.

PAGE has also stated that, according to estimations, for the period from October 2017 to March 2022 revenues from scratch card tickets could have been 4.4% higher if skill machines were not on the market. This means that the state of Pennsylvania’s budget has been deprived of about $200 million in tax revenue.

Additionally, PAGE highlighted that skill game machines often have a direct correlation to higher criminal activities.

On the flip side of this argument, owners of venues where skill game machines are present have stated that the only reason why they have not yet gone out of business is that they operate such machines.