What are Skill Games? Not just Slot Machines? Legal where?
Published:
May 28, 2025
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05:19 p.m.
ET
Key Points
“Skill Games” differ from slot machines by requiring memory, pattern recognition or quick thinking to win, rather than relying entirely on chance.
Some states (like Pennsylvania and Texas) allow them; others (like Virginia) have banned them; while they remain in a legal gray area in a handful of other states.
Despite being marketed as games of skill, many users develop compulsive behaviors, financial loss and addiction-like symptoms.
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Skill games may look like slot machines, but they represent a category of play where the outcome isn’t left entirely to chance.
These devices have exploded in popularity over the past decade. Their appeal lies in the promise of skill-based outcomes: instead of spinning the reels and hoping for a lucky win, players must engage memory, pattern recognition or quick decision-making in hopes of winning a payout.
The result is a legally murky and psychologically complex product category that continues to test the limits of gambling regulation and public health protections.
The question of legality often boils down to whether the outcome is determined more by chance or by the player’s ability. That debate came to a head back in February 2024 when a Texas judge ruled that popular Pace-O-Matic machines are indeed skill-based, and therefore legal under state law. However, other states have taken the opposite view.
In this article, we break down what skill games are, where they’re legal, how they work, and the growing concerns around them for those at risk of gaming and gambling addiction.
What are “Skill Games”? What makes them different from slot machines?
Skill games are often mistaken for traditional slot machines due to their similar appearance: bright screens, oftentimes spinning reels and the chance to win money. They are often placed in locations such as convenience stores, gas stations, restaurants, fraternal clubs and truck stops across the country. The critical difference betweens slots and skill game machines lies in the fact that the latter inject a degree of player agency, whereas slot machines’ outcomes rely entirely on chance.
As explained by a representative from Pace-O-Matic, a leading skill game software provider in the nation, “A slot machine, you press the button, and you hope that you win or lose based on some math equation or algorithm that’s in the game. Our games don’t have that. On every single play, you can win… you can win up to 105 percent every time; it just depends on the way you play it.”
Pennsylvania courts have upheld this distinction repeatedly, stating that because skill is required to achieve a payout, these machines do not qualify as slot machines. This legal interpretation has created a gray area, leaving lawmakers divided over how best to regulate and potentially tax them. Some are pushing for tougher restrictions on the number and placement of machines, citing their growing accessibility to individuals with gambling problems, particularly those who have already placed themselves on voluntary gambling self-exclusion lists.
Despite the skill-versus-luck differences, many players report similar experiences between skill games and traditional gambling. The potential for big wins, combined with a lack of clear regulation, creates a scenario where users may lose track of spending and experience the same compulsive behaviors found with traditional gambling products. As one player put it in a recent WGALTV Channel 8 report (Pennsylvania Susquehanna Valley region), “Once you start putting money into a machine, it’s hard to keep track of how much you’re spending.”
Though marketed as games of skill, these machines can elicit the same psychological responses as games of chance. And while they generate revenue for local businesses and veterans’ organizations, the lack of consistent oversight continues to raise concerns among public health experts and gambling support advocates.
Are Skill Games a form of gambling?
From a legal viewpoint, the debate around skill games being gambling varies by state. Psychologically, the answer is more complicated.
While skill games claim to reward mental effort, the monetary risk-reward dynamic mirrors traditional gambling. Studies and support lines have documented increasing numbers of people reporting compulsive behavior, loss of financial control and symptoms of gambling disorder associated with use of these skill game machines.
According to Josh Ercole, the executive director of the Pennsylvania Council on Compulsive Gambling, over 400 calls since 2021 have involved individuals reporting issues with skill games, and many of whom were already enrolled in casino self-exclusion programs.
Where are Skill Games legal and available?
Some states allow skill game machines with limited oversight, while others have banned them entirely or are embroiled in legislative uncertainty. Below, we break down the legal status and current developments in several key states, including updates on court rulings, regulatory proposals and community concerns.
Pennsylvania
In Pennsylvania, skill games remain legal, though their regulation is hotly contested. These devices are commonly found in local establishments and continue to operate in a legal gray area: multiple court decisions have affirmed they are not slot machines under current law. However, this hasn’t stemmed a growing wave of concern.
Pennsylvania’s legislature is locked in a debate over how, and whether, to tax and regulate skill games. State Representative Bob Merski has called for stricter limits on their placement, citing that “people on the self-exclusion list for casinos are still tempted” by their easy access in neighborhoods. Senator Gene Yaw, on the other hand, warns that excessive regulation could push the games underground and cut a revenue stream for small businesses.
Illinois
Skill games are available in Illinois, including 10 Pace-O-Matic games, typically found in bars and restaurants. Regulation varies by municipality and enforcement is inconsistent. Some local governments have attempted to limit their proliferation due to public health and zoning concerns.
Texas?
In a notable 2024 decision, a Texas judge ruled that Pace-O-Matic games qualify as legal skill-based devices. The case has opened the door for more widespread distribution of skill games across the state, though legal pushback remains as communities evaluate the social impacts and costs.
More machines have been popping up in Texas, including in Alice, where Police Chief Eden Garcia recently said, "We're looking into the legality of it. I know there's a gray area when it comes to these types of machines… We'll look at the process on how it's done. First of all we have to make a determination if it's a game of skill or whether it's a game of chance, right?”
Wyoming
Wyoming’s legislature has debated regulation in recent years, though clear policy has yet to emerge. As in other states, local communities are concerned about the rise of unregulated gambling activity.
Virginia? Not anymore.
Skill games are currently illegal in Virginia, following a Supreme Court ruling that reinstated the state’s ban. An attempt by the industry to reverse the ban earlier this year failed. Yet, some businesses appear to be testing the boundaries of the law by installing so-called “pre-reveal” games, which are machines that show outcomes in advance and claim to involve no skill at all.
As detailed by the Virginia Mercury, these games are defended by former state delegate Steve Heretick, who argues they should be considered visual entertainment rather than gambling. Critics and lawmakers argue this is a thinly veiled attempt to skirt the law, with Del. Paul Krizek stating that companies pursuing this angle are “contributing to lawlessness.”
Despite Heretick’s legal theories, the machines have led to criminal charges in some cases. Advocacy groups and political observers warn that enforcement remains uneven, and businesses continuing to operate such devices may be risking prosecution.
What kinds of skill games are there? What skills are involved?
Skill games come in a variety of styles and themes, from puzzle-based adventures to fast-paced action games. These are designed to challenge players in ways that traditional games of chance do not. Unlike gambling or slot machines, playing skill games often includes critical thinking, memory, pattern recognition, hand-eye coordination and/or strategic decision-making to succeed.
According to popular skill game manufacturer Pace-O-Matic, these games are not only legal and entertaining but give players the opportunity to win every time. Their games are available in locations like bars, restaurants, clubs, convenience stores and truck stops throughout Pennsylvania, Texas, Wyoming and Illinois.
Popular games challenge players to complete visual puzzles, make strategic selections or respond to cues quickly.
Yet, the perception of control can be misleading. Even when skill is involved, the design of these games often mimics that of slot machines, which can heighten engagement and lead to compulsive play.
Concerns about the dangers of skill games
Despite claims of being “different from gambling,” skill games can still lead to financial losses, loss of time perception, increased impulsivity, relapse among self-excluded gamblers and the risk of developing gaming or gambling addiction.
For individuals already vulnerable to compulsive behaviors, the unregulated or lightly regulated nature of skill games presents a serious concern. Advocacy organizations, treatment providers and public health experts have called for stricter oversight, better consumer education and support pathways for those affected.
Skill Games addiction treatment
Birches Health has seen firsthand how difficult it can be to recognize and manage problematic gaming and gambling behaviors, especially when the line between skill and chance is blurred and the types of player protections in gambling products are not present.
Whether you’re struggling with skill games, online gambling or another form of gaming, you are not alone. The Birches team specializes in evidence-based treatment for gambling and gaming addiction, providing confidential support from licensed clinicians who understand the unique challenges these activities pose and how to help individuals recover from compulsive behaviors developed around them.
Birches Health offers:
Virtual therapy tailored to your needs
Support for individuals, families, groups and couples
Tools to help you regain control over time and finances
Guidance on avoiding relapse and building healthier habits
To connect with Birches Health and get started, you can:
Call 833-483-3838
Email help@bircheshealth.com
