Commonwealth Court strikes down Philadelphia's unlawful skill game ban

On December 7, 2024, a significant ruling was made by the Commonwealth Court concerning the legality of skill games in Philadelphia, Pennsylvania. The court found that the ban imposed by the Philadelphia City Council was unlawful, marking a pivotal moment for small businesses in the area that had been adversely affected by the restrictions. The ban, initiated to address concerns about illegal gaming, ultimately harmed legitimate businesses that operate within the legal framework set forth by the state. Many small restaurants and bars rely on the supplemental income generated from legal skill games to remain viable, especially in the face of economic challenges. The ruling comes as a relief to operators who argued that the ban compounded their struggles during tough economic times, denying them a revenue stream that many had come to depend upon. Furthermore, the presence of skill games in establishments has often been cited by owners as a means of enhancing safety, as they attract patrons and discourage potential criminal activity during late hours when staffing is limited. In the wake of this decision, there is renewed hope among business owners for a legislative framework that would regulate and tax skill games effectively. Support from Philadelphia lawmakers and Governor Josh Shapiro adds momentum to the push for such regulation. It is anticipated that a forthcoming bill could generate approximately $250 million in state taxes within its first year. Additionally, there is optimism regarding a challenge expected to be heard by the state Supreme Court, which could address similar unlawful bans elsewhere in Pennsylvania, such as the recent one imposed in Bensalem. Overall, this court ruling not only restores the legality of skill games in Philadelphia but also underscores the broader implications for small business sustainability and legislative action within the Commonwealth.