Williamsport, Pa. — With a statewide crackdown on skill game machines just days away, the head of the Williamsport/Lycoming Chamber of Commerce is warning of the fallout for local small businesses, nonprofit clubs, and a Muncy manufacturer that builds the machines.

"The inability for Harrisburg to address this is shameful," Jason Fink, president and CEO of the chamber, said.

A Lycoming County senator and three other lawmakers asked the state Supreme Court on Tuesday night to push the deadline back to February, but withdrew the request the next morning.

Court ruling started the clock

The deadline stems from a June ruling by the state's highest court. On June 15, the Supreme Court of Pennsylvania ruled that skill games, often found in taverns, restaurants, social clubs, mini-marts, gas stations, and other businesses, are "slot machines" as defined in the Gaming Act.

The court stayed the ruling for 120 days to give the General Assembly time to pass a law addressing the estimated 70,000 skill games operating statewide.

That window closes Oct. 13. Pennsylvania State Police have said all skill game devices located outside licensed casinos and qualifying truck stops are unlawful, and establishments keeping them are subject to criminal prosecution and immediate seizure of the machines as of Oct. 14.

Powering off or unplugging a machine is not sufficient, police emphasized.

Lawmakers ask court for more time

State Sen. Gene Yaw, R-Lycoming, Sen. Anthony H. Williams, D-Philadelphia, Rep. Danilo Burgos, D-Philadelphia, and Rep. Jonathan Fritz, R-Wayne, filed an emergency application at 8:45 p.m. Tuesday asking the Supreme Court to extend the "safe harbor" through Feb. 10, 2027, another 120 days.

The four are described in the filing as prime sponsors of a bill that would create a statewide licensing, taxation, and regulatory system for the machines. A House co-sponsorship memo attached to the filing calls for a $500 monthly fee per machine and a minimum player age of 21. It would send 84% of the revenue to roads, bridges, and public transit, 15% to fire and EMS, and 1% to administration.

According to the filing, the proposal has been drafted into a compromise House bill that is under review before formal introduction. An unofficial report attached to the filing lists 103 House co-sponsors plus Burgos as prime sponsor, more than the 102 votes needed to pass the chamber. State Rep. Joe Hamm, R-Lycoming, is among them.

The lawmakers argued that seizing machines before the bill passes would slow the new system down, since a machine sitting in an evidence room or tied up in a forfeiture case can't be licensed and put back into service.

At 11:05 a.m. Wednesday, their attorney filed a one-sentence notice asking the court to mark the case "discontinued and ended," noting no other parties had yet been served. The notice does not say why the request was withdrawn. 

With the request withdrawn, the Oct. 13 deadline stands.

Local manufacturer, local jobs

Fink said the chamber is particularly concerned about Miele Manufacturing, which manufactures skill game machines and is headquartered in Muncy.

"Miele Manufacturing provides quality, family sustaining jobs to nearly 100 people at its Muncy operations," Fink said. "People depend upon them in working to support their families."

In a June 22 letter to state legislators, Fink wrote that the broader Miele Group employs 161 people at wages "well above the minimum wage," with a generous benefits package.

Over 100 locations in Lycoming County

The letter also detailed how widely the machines are spread across Lycoming County. According to the chamber, Pennsylvania Skill games are located in 44 bars and restaurants, 22 private clubs, 17 smoke shops, six convenience stores, and 23 other businesses — 112 locations in all.

"Revenue derived from these small businesses are key for their viability," the letter states.

Fink's letter also pointed to the company's local philanthropy, including a 2025 donation of more than $1 million to the YWCA Northcentral PA to support its Williamsport shelter for women and children fleeing domestic violence.

Credit for local lawmakers

Fink stressed that his criticism is aimed at the Legislature as a whole, not at the county's own delegation.

"This is not a reflection of the hard work that our state legislators have done, including Senator Yaw and Representative Hamm, in working across party lines to get a meaningful resolution to this issue," he said.

Yaw and state Rep. Joe Hamm, R-Lycoming, both represent the area.

Dispute over the tax rate

Pennsylvania's divided government has put forward a handful of proposals to regulate and tax skill games but has not reached a consensus. Fink said the industry is not seeking to avoid taxes, only a rate it can sustain.

"The skills game industry is not fighting against being taxed. All that is being requested is that this is being done proportional to their industry," Fink said. "This is not the casino industry where a few select benefit from their operations. The skill games industry is more far reaching with more smaller businesses and organizations benefiting from it."

Pennsylvania casinos and regulated gambling companies have argued for years that unregulated skill games create an uneven playing field. The Independent Fiscal Office estimates regulated skill games could produce more than $1 billion a year for the state.

Originally published on northcentralpa.com, part of the BLOX Digital Content Exchange.

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