BENSALEM, PA — Casino lobbyists worked hand in hand with Pennsylvania lawmakers to create legislation favorable to established entities in the industry, according to lawsuits and a recent media report. It’s the latest tension in an ongoing struggle involving casinos, the Pennsylvania Lottery, and alternate types of gambling terminals called «skill» games.
State Sen. Robert «Tommy» Tomlinson and his staff were in email correspondence with lawyers and lobbyists from Parx Casino when Senate Bill 710, a 2019 bill which would’ve banned certain gambling skill games located in gas stations and bars, was written, Spotlight PA first reported this week.
These emails were exposed in an ongoing federal lawsuit by Georgia-based Pace-O-Matic, which develops such games and places them locations outside of casinos. Supporters argue these «skill» games require some degree of ability and don’t rely on pure luck, and thus they have remained outside of the jurisdiction of the Pennsylvania Gaming Control Board.
However, the casino industry has lobbied in the past to make skill games illegal. And unlike heavily taxed casino games, skill games are untaxed. and send some 40 percent of their revenue to the small, family-run businesses that house them, Spotlight reports.
This is all money — and, ostensibly, customer business — that is being siphoned away from casinos and the state and into the hands of small businesses and the developers of skill games.
This has led to numerous sectors angling against skill games, including supporters of the Pennsylvania Lottery, who have pushed studies backed by the casino industry claiming that skill games harm casinos.
During a February state senate hearing, officials presented a study on the negative impact of skill games on the Lottery. The study had significant input from a major competitor of skill games, a video game terminal and Lottery terminal called Scientific Games. When executive director of the Lottery, Drew Svitko, said he had faith in the study, State Sen. Chris Gebhard replied «that is a pretty big leap of faith.»
«We have always questioned the Lottery’s harsh spotlight on skill games, especially as the Lottery continues to break sales records,» Mike Barley, spokesman for Pennsylvania Skill, said at the time. «Lottery tickets are sold at truck stops, but for some reason, VGTs are not a concern to officials.»
The state’s efforts against skill games led to state police and Bureau of Liquor Control and Enforcement officials seizing terminals around the state, arguing they were illegal. Pennsylvania Skill filed a lawsuit, and their games and cash were ordered returned in October 2021.
«The fact remains that every time our games’ legal status has been challenged, the courts have returned favorable rulings to Pace-O-Matic, Miele Manufacturing, which builds our games, and Pennsylvania Skill operators, small businesses and fraternal clubs,» the company said in statement.
Still, the degree to which lawmakers and state officials were working directly with lobbyists for the casinos and other gaming industries remained murky at best until this week’s revelations. The latest lawsuit shows Ryan Skoczylas, Tomlison’s chief of staff writing lobbyists via email: «Tommy would like to introduce this bill sometime next week. Where are we at with the draft language?»
Lawyer and lobbyist Mark Stewart reportedly replied that Parx executives were «still in the process of refining it and considering a couple additional concepts.»
The lawsuit itself, filed by Pace-O-Matic, is not actually about the relationship between the industry and politicians. however. Stewart himself previously represented Pace-O-Matic, which should be a conflict of interest rendering him unable to represent Parx, it argues.
Tomlinson, who recently announced his impending retirement after 30 years in politics, said that consulting with outside sources is «an integral part of the legislative process» in a statement. He added that while his team «may have received insight on language, I had the final say on the legislation that was introduced.»
Draft legislation written by lobbyists is nearly identical to what was published in Senate Bill 710, the suit states.
While 710 did not pass in 2019, Tomlinson has introduced similar legislation in the Pennsylvania legislature this session.
