Two states now treat cash-prize skill machines as unlawful, and the most closely watched skill game industry news of 2026 is coming from them as the fourth quarter begins. In Texas, an attorney general opinion issued June 10 targets machines with a skill-based "Follow Me" feature. In Pennsylvania, a Supreme Court ruling takes effect after October 13, and as of the latest reporting, lawmakers had not passed a fix.
Texas: Opinion KP-0520 targets "Follow Me" add-ons
Attorney General Ken Paxton issued Opinion KP-0520 on June 10, 2026, in response to request RQ-0637-KP from Sen. Bob Hall (R-Edgewood), according to Texas Scorecard. The opinion addresses amusement machines that offer both a chance-based mode and a skill-based mode. As reported, "Follow Me" is a Simon Says-style memory game attached to slot-style machines. It lets a player try to win back credits lost on the most recent spin by pressing numbered buttons in an order the machine sets.
Texas Scorecard and the Public Gaming Research Institute (PGRI) both reported this line from the opinion: "So long as chance plays any role in determining whether the player obtains something of value, the device satisfies the statutory definition" of a gambling device under Penal Code Chapter 47. Texas Scorecard reported this statement from Hall: "This opinion provides valuable guidance to law enforcement agencies, prosecutors, and local officials across Texas." PGRI quoted him as saying, "A pig wearing lipstick remains a pig, and a gambling device dressed up to resemble a 'skill' device remains a gambling device."
Advisory opinion, conflicting court rulings
PGRI reports that the opinion is advisory and does not bind Texas courts. It also follows 2025 court wins for Pace-O-Matic. The Dallas Morning News reported on May 20 that former 336th District Court Judge Laurine Blake found Pace-O-Matic machines to be games of skill and that the Sixth Court of Appeals affirmed that decision 2-1. Justice Jeff Rambin wrote: "The trial court heard the evidence in person. We did not. That matters."
Because the courts and the attorney general have reached different conclusions, enforcement in Texas falls largely to local prosecutors and police. The same Dallas Morning News report said Dallas Police had roughly 40 to 50 gambling-device investigations underway. It also quoted Van Zandt County Fire Marshal Kevin Palmer as saying the Follow Me feature "has become increasingly harder to find."
The 90th Texas Legislature meets from January 12 to May 31, 2027, according to the Texas Juvenile Justice Department. The controlling statutes are Penal Code Chapter 47 and Occupations Code Chapter 2153. Coin-operated machine licensing and tax administration are handled by the Texas Comptroller. Holding a license or tax registration does not establish that a particular machine is lawful.
Pennsylvania: Supreme Court deadline arrives
On June 15, 2026, the Pennsylvania Supreme Court ruled that skill games are slot machines. Spotlight PA reported that the court said the machines meet that definition "several times over." According to Tucker Arensberg, the court held that the devices are subject to both the Race Horse Development and Gaming Act and Section 5513 of the Crimes Code. The court stayed its ruling for 120 days. Barley Snyder advised that "businesses have until October 13, 2026 to remove the machines." Spotlight PA reports that about 70,000 machines operate in the state.
Enforcement warnings
State Police guidance reported by CDC Gaming on September 11 says: "Simply powering off an otherwise operable machine or unplugging them is not sufficient to comply with the law." Spotlight PA reported that, starting October 14, police may seize machines, equipment and money and may file criminal charges for devices located outside licensed casinos and truck stops. Attorney General Dave Sunday told City & State PA that his office would "much rather business owners and social clubs comply with the law" than see searches and seizures.
Competing bills
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HB 2213 / SB 1079: Rep. Danilo Burgos's co-sponsorship memo proposes a $500 monthly fee per terminal, a statewide cap of 50,000 terminals and local health and safety standards. The memo projects $300 million a year. The Senate companion, SB 1079 (Sen. Gene Yaw), has been referred to committee and has no other recorded action.
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HB 2801 / HB 2802: Rep. Russ Diamond's September 24 release describes a 20% skill-game tax and a limit of five machines per site, available only to clubs, liquor-licensed bars and restaurants, and qualified truck stops. The plan would also cut the casino tax rate to 49.9% and fund property tax relief (WJAC).
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Extensions: HB 2793 (Rep. Manuel Guzman) and HB 2795 (Rep. Brad Roae) were referred to committee on September 24. Guzman's memo describes a transition period through April 13, 2027. Sen. Michele Brooks circulated a Senate companion memo on September 25.
In June, Spotlight PA reported that Gov. Josh Shapiro had proposed a 52% tax and Senate Republicans a 35% tax. The disputes include machine caps, the tax rate, where the revenue goes and local control.
Status snapshot
As of October 5, the Erie Times-News reported that no regulation or extension bill had passed and that three session days remained before the deadline. The paper also reported a bipartisan Yaw/Williams memo, dated September 30, that projects about $700 million a year from a $500 monthly fee per terminal. Rep. Mike Jones (R-York) told the paper: "I think it's ridiculous we haven't prioritized this."
Virginia background
Gov. Abigail Spanberger vetoed skill-game legalization bill SB 661 in April (WDBJ7), and the veto stood (VPM). Virginia shows that a legalization bill can pass the legislature and still fail to become law.
What to watch in Q4
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Whether Pennsylvania acts after the October 13 deadline, and how enforcement begins.
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Whether local prosecutors in Texas rely on KP-0520 despite the appellate ruling for Pace-O-Matic.
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Texas bills filed ahead of the January 2027 session.
Operators reviewing supplier contracts can document their questions and evidence with our vendor comparison checklist. The checklist is a recordkeeping tool. It does not provide legal approval.
Related reading
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What Makes a Skill Game 'Skill'? The Predominance Test Explained
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Lease vs Buy Skill Machines: Which Costs Texas Operators Less?
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Skill Game Tax Revenue by State in 2026: Projections, Collections and What the Numbers Don't Prove
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Why South Carolina's Video Poker Ban Still Haunts the Skill Game Industry
Sources
Reporting is for information, not legal advice. A vendor listing or the term skill game does not establish a machine's legality in any jurisdiction.
AI assistance was used in preparing this article. Consult primary sources and qualified counsel for legal decisions.