Penn Entertainment Positioned as Biggest Casino Winner if Pennsylvania Skill Games Disappear After Supreme Court Ruling
Analysts at Citizens Gaming say Penn Entertainment stands to benefit more than any other operator if Pennsylvania's 70,000 skill game machines are eventually removed following the state Supreme Court's landmark ruling classifying them as illegal slot machines.
Wall Street analysts are already sizing up who wins if Pennsylvania’s estimated 70,000 skill game machines disappear from bars, convenience stores, and gas stations following the state Supreme Court’s June 15 ruling classifying them as illegal slot machines — and the early consensus is that Penn Entertainment has the most to gain.
Analysts Jorden Bender and Isabelle Slavin of Citizens Gaming wrote in a note to clients that Penn Entertainment, which operates four casinos in Pennsylvania, is “best situated to benefit” from the absence of skill games. The Citizens note identifies Boyd Gaming and Churchill Downs as secondary beneficiaries, along with online operators including DraftKings, FanDuel’s parent Flutter Entertainment, Rush Street Interactive, and BetMGM, as some slot-oriented players are expected to migrate to digital channels.
The Ruling and the 120-Day Window
The Pennsylvania Supreme Court’s decision came in a 5-2 ruling that overturned two Commonwealth Court decisions and found that skill game devices meet the state’s definition of slot machines under the Gaming Act. The court issued a 120-day stay — expiring approximately October 13, 2026 — meaning the machines can remain operational during that window while the General Assembly considers whether to pass legislation to regulate and tax them.
The stay creates urgency for lawmakers. If no legislation passes before the stay expires, law enforcement would be permitted to begin seizing machines. Republican Senate leaders have proposed a 35% tax rate on skill game gross revenue, while Gov. Josh Shapiro’s budget calls for 52%, putting the rate debate at the center of a potential deal.
The Independent Fiscal Office has estimated that a regulatory framework with taxation could generate over $1 billion annually for the state — a significant figure that gives lawmakers strong incentive to act, even as the politics of protecting small business owners who rely on skill game revenue complicate the picture.
What It Means for Pennsylvania Bettors and Casino Players
Penn Entertainment operates Hollywood Casino at Penn National Race Course in Grantville, Hollywood Casino York, Hollywood Casino at The Meadows in Washington, and Hollywood Casino Morgantown. The company’s broad geographic presence in the state means it is well-positioned to capture players who had been spending money on skill games in their neighborhoods and now need an alternative outlet.
For online gamblers, the ruling could also provide a modest tailwind. Analysts noted that some skill game players who prefer slot-style entertainment may turn to online casino platforms in Pennsylvania, which is one of only a handful of states with fully regulated iGaming. For those already active in Pennsylvania’s sports betting market, the skill games ruling is a separate but parallel development — the state’s online sportsbooks and online casinos operate under existing Gaming Control Board licensing that is unaffected by the skill games decision.
The next 120 days will define the outcome. If legislators reach a deal to tax and regulate skill games, operators like Penn still benefit from a more competitive and transparent landscape. If the stay expires without action, the abrupt removal of tens of thousands of machines from small businesses could trigger a broader shift in where Pennsylvanians spend their gaming dollars.