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Pennsylvania Skill: VGTs benefit out-of-state corporations, harm skill games market and casinos

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VGTs will hurt small businesses, social clubs and veterans’ organizations in the state, along with the marketplace for legal skill games, said Pennsylvania Skill’s spokesman following a Senate hearing today. Pace-O-Matic powers Pennsylvania Skill.

Pennsylvania Skill, made up of amusement and gaming small business owners across the state, questioned why legislative support for video gaming terminals, or VGTs, exists given their history in other states. The comments were based on out-of-state VGT companies testifying at a Senate Community, Economic and Recreational Development Committee hearing.

“VGTs have consistently overpromised the amount of revenue they would generate for Pennsylvania and minimized their impact on lottery and casino revenues,” said Mike Barley, spokesman for Pennsylvania Skill. “We don’t want to see a repeat of what has happened in other states.

In Illinois, VGTs were legalized in 2009. At the time, companies predicted they could generate funds to support a $31 billion building program to create jobs and upgrade the state’s infrastructure. In 2017, eight years after the legalization of VGTs, the state had collected less than $1 billion. Illinois lawmakers also were disappointed to find the projected $2.5 billion in state revenue did not materialize.

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In addition, regulatory expenses for video gambling proved far higher than anticipated, forcing the state to divert $83 million from casino taxes to support the work of the Illinois Gaming Board.

Barley added that thousands of illegal VGTs are operating in the Commonwealth without a court ruling, and Pennsylvania Skill supports efforts to crack down on those games through regulation and enforcement.

Pennsylvania Skill has been ruled a predominant game of skill by a Court of Common Pleas. That case was never appealed by the Pennsylvania State Police. In order to further cement its legal status, Pennsylvania Skill has filed a lawsuit in Commonwealth Court.

Locations across the state depend on skill game revenue. At Sprankle’s Neighborhood Markets in western Pennsylvania, the owners have been able to offer health benefits to employees for the first time thanks to the money they receive from the skill games located in their grocery stores. They also provide daily free lunches to staff thanks to game revenue.

“Lawmakers need to understand what location owners do with their skill game revenue,” said Ryan Sprankle, an owner of one of the three Sprankle’s Neighborhood Markets. “The money has made a huge difference for our employees – we could not afford health insurance for them without it. They can stay healthier, and we are better able to keep good staff.”

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Barley said Pennsylvania Skill hears stories like the Sprankles’ all the time. Many businesses and organizations count on this revenue. He wants to see legislation pass that would provide regulation of legal skill games as a way for the industry to continue to help locations and pay a steady stream of $250 million in tax revenue for the state each year. In addition to that, Pennsylvania Skill already pays tens of millions of dollars in taxes annually.

“A true skill game cannot set payout levels because the results are based on a player’s skill,” Barley explained. “After analyzing Pennsylvania Skill data, on average, 90 percent of players win. With that said, there are many illegal VGTs masquerading as skill games that are proliferating in the Commonwealth, and they do have set payout levels. That is why there is a clear need for regulation.”

Pennsylvania Skill games, which are manufactured in Williamsport, provide family-sustaining jobs in manufacturing and for small businesses that operate the games. The industry provides a needed financial lift for fraternal clubs and veterans’ groups, restaurants and bars.

The industry also provides charitable giving of over $1 million a year that supports Pennsylvania communities.

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Canada

Relax Gaming joins forces with PointsBet to strengthen footprint in Ontario

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Relax Gaming, the iGaming aggregator and supplier of unique content, has significantly enhanced its presence in the Ontario market through an agreement with leading Canadian operator, PointsBet.

This partnership reinforces Relax Gaming’s aim to become a standout provider across North America, having already gained early success in Ontario. Relax became one of the first suppliers to deliver content to the region’s players in March 2022, debuting with over 120 games across multiple operators.

PointsBet pride themselves as one of Canada’s leading operators offering unmatched speed, ease of use, and a comprehensive array of pre-game and in-play sports betting options. This is complemented by a top-tier online casino which will now be boosted with the integration of Relax’s portfolio of slots and live dealer options.

With its authentic Canadian approach, PointsBet prioritises technology that minimises external dependencies to maintain control over its platform and has a commitment to responsible gambling best practices, ensuring a safe and secure environment for all players.

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Martin Stålros, CEO at Relax Gaming, said: “Since we launched in Ontario we have enjoyed tremendous success, with our content hitting the sweet spot for the broad range of players in the Canadian province. This partnership with PointsBet will strengthen our presence in the market as the region’s leading operator integrates our rich content portfolio which will engage its player base.”

Scott Vanderwel, Chief Executive Officer at PointsBet, added: “Relax Gaming has established a strong reputation across North America and in Ontario in particular. The impressive range of content that will be integrated into our platform will increase engagement within our online platform and we are delighted to be able to provide more immersive experiences to our audiences.”

Established as one of the industry’s leading B2B suppliers, Relax Gaming was awarded GGA’s Product Launch of the Year in February 2023 for Dream Drop Jackpots. Money Train 3 names the 2023 CasinoBeats Game Developer Awards amongst its 6 Slot of the Year titles, while the brand also won the award for Skill Games Supplier at the 2023 EGR B2B Awards along with the Innovation in Mobile award at the 2023 SBC Awards.

Relax Gaming provides more than 4,000 online casino games, from its high-performing proprietary slots to a significant, varied library of content from hand-picked third-party studios via its partnership programmes.

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Canada

Jackpot Digital Receives Approval from the Saskatchewan Liquor and Gaming Authority

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Jackpot Digital, a leading manufacturer of electronic multiplayer dealerless poker tables, has announced that it has received approval from the Saskatchewan Liquor and Gaming Authority (SLGA) to act as a registered supplier of gaming supplies and services to regulated casinos in the Canadian province of Saskatchewan.

The approval follows the Company’s news release dated February 6, 2024, announcing the signing of a licensing agreement with the Saskatchewan Indian Gaming Authority (SIGA) to install the Company’s Jackpot Blitz dealerless poker ETGs into SIGA casinos.

SIGA operates seven casinos and Playnow.com in Saskatchewan. At the outset, SIGA proposes to install Jackpot Blitz machines at its Dakota Dunes and Gold Horse Casino properties, located in Saskatoon and Lloydminster, respectively.

Jackpot CEO Jake Kalpakian said: “We are excited to receive approval as a gaming equipment supplier in Saskatchewan. This represents the first major jurisdictional, non-tribal license received by Jackpot during our continuing expansion into the land-based casino market. We have many more license applications underway in the US and other Canadian provinces, which will dramatically impact our ability to accelerate the rollout of Jackpot Blitz across North America.”

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Calgary Sports and Entertainment Corporation

Play Alberta, CSEC Extend Partnership

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Teams under the Calgary Sports and Entertainment Corporation (CSEC) banner have expanded their long-term partnership with Play Alberta, the province’s premier iGaming destination. As part of the agreement, the Flames will feature AGLC’s responsible gambling program, GameSense, on their home helmets and a Play Alberta insignia displayed on their home jerseys. The Stampeders, Wranglers, and Roughnecks will integrate the Play Alberta logo onto their uniforms.

“There’s significant importance now to showcase meaningful responsible gambling efforts in the iGaming industry. I’m proud of our initiatives to provide GameSense with such a visible platform. GameSense promotes healthy gambling habits online and in person and including AGLC’s responsible gambling platform over the course of this partnership is a huge accomplishment,” Kandice Machado, Chief Executive Officer at AGLC.

The agreement makes Play Alberta the exclusive sports betting and online gaming partner of the Flames, Wranglers, Stampeders, and Roughnecks. Through the partnership, Play Alberta and CSEC will develop unique partnerships and in-arena giveaways during the season.

“Through GameSense, our partnership with Play Alberta equips our fans with the knowledge required if they wish to participate in gaming while they support their home team. We are both proud and excited to extend our relationship with Play Alberta that makes cheering for our teams that much more fun while also generating revenue to support the quality of life for Albertans,” said CSEC President and CEO Robert Hayes.

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Alberta is the first jurisdiction in North America to partner with professional sports franchises and integrate PlayAlberta.ca and social responsibility branding onto uniforms. It upholds AGLC’s commitment to responsible play, raising awareness of GameSense and Self-Exclusion, resources that give bettors the tools they need to make healthy gambling choices.

In addition, proceeds generated through the website go toward the province’s General Revenue Fund. In 2023–24, $235 million was generated for programs and services that Albertans rely on every day through Play Alberta, an increase of more than $42 million from the previous year.

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