North East Borough Moves Forward with Skill Games Regulation

skill games throughout the community. Monday night’s borough council meeting brought the matter into focus, with officials and residents weighing in on concerns surrounding these machines, particularly when they are concentrated in stand-alone gaming parlors.

Skill games, which resemble traditional slot machines but are classified differently under state law, have gained traction across various Pennsylvania towns. These devices, which were declared legal by the Commonwealth Court last December, operate in a regulatory gray zone. Unlike traditional gaming machines found in casinos, they do not fall under the same tax and regulatory frameworks, making them a contentious issue for municipalities.

Local Officials Seek Measured Approach

Borough Council President Ryan McGregor introduced a draft ordinance during the meeting that would restrict the number of skill game terminals in a given business without enacting a full ban. McGregor emphasized that the goal is to ensure these machines are hosted in establishments that meet certain standards and to prevent the emergence of unchecked gaming parlors.

“This is a way to make sure we’re having these machines in places that are maintaining certain standards in of people who are using them, age-wise and also making sure they’re in places we want to have them in the borough,” McGregor explained during the council session.

The ordinance aims to distinguish between businesses that use the machines as a secondary revenue stream and those that appear to operate primarily as unlicensed gambling venues.

Community Organizations Defend Their Role

Veterans’ clubs and other social organizations voiced their for maintaining access to skill games, which often contribute to their fundraising efforts. These groups are legally required to reinvest a portion of their earnings into local causes and charitable initiatives.

McGregor affirmed that the proposed rules would not impact social clubs using a small number of machines to supplement their operations. “The ones that supplement a business, like our clubs and social groups, they have machines at the bars. We are perfectly fine with that,” he said.

Still, leaders of these community clubs expressed concern over the competitive advantage that less regulated establishments might have. Sam Rizzo, president of the Brotherhood of St. Joseph’s Club, highlighted the disparity: “Other people in this town that have tried to put these machines in are not regulated by the government. They don’t have to pay machine taxes and they don’t have to give money back to the community like we do.”

Broader Push for Local and State Oversight

North East is not alone in grappling with how to handle skill games. Municipalities across Pennsylvania are implementing or considering regulations of their own. Meadville, for example, voted to limit the use of these machines to three designated areas within the county. Jefferson County recently held a vote to evaluate their future, and Old City proposed a specific tax on skill games to help fund public amenities such as municipal pools.

At the state level, momentum is also building for a more comprehensive solution. In February, Governor Josh Shapiro introduced a proposal to levy a 52% tax on skill game revenues. Other lawmakers have followed suit with bills calling for regulation and structured taxation.

For now, North East officials appear focused on striking a balance between allowing these games in responsible venues and curbing their unregulated spread. With the ordinance still under review, the borough is positioning itself to be proactive rather than reactive as the legal landscape surrounding skill games continues to evolve.

Source:

New Ordinance in North East is Looking to Regulate Skill Games, erienewsnow.com, May 5, 2025.