The Hidden Perils: Skill Games and Their Toll on Local Communities

In neighborhoods across western PA, from bustling city corners in Pittsburgh to quiet convenience stores in the local area, a new form of entertainment has proliferated: skill games. These electronic machines, often resembling slot machines but marketed as games of skill rather than chance, promise quick thrills and potential payouts based on player ability. Found in bars, gas stations, and pizza shops, they have become a fixture in many communities. However, beneath the flashing lights lies a darker reality. Mounting evidence suggests that skill games - which require no skill at all - are inflicting potential harm, draining economies, fostering addiction, and eroding social fabrics.

Skill games operate in a legal gray area in many states, unregulated and untaxed compared to traditional casinos or lotteries. Proponents argue they provide harmless fun and revenue for small businesses, but critics—including community leaders, researchers, and surveys—paint a starkly different picture. As these devices multiply, their negative impacts are hard to ignore.

One of the most profound effects of skill games is their economic toll on communities, particularly those already struggling. Take Virginia for instance, data from 2020-2021 showed that $2.2 billion was wagered on skill games, resulting in $506.7 million in net losses for players. If that money had been spent elsewhere in the local economy, it could have supported 9,214 direct jobs, $208.6 million in labor income, and $506.6 million in total economic output. Instead, these funds largely benefit machine operators, with little trickling back to public services.

This diversion extends to state revenues as well. Skill games have been shown to undercut lottery sales, a key funding source for education and other programs. In Pennsylvania, they negatively impacted lottery sales by an estimated $650 million between 2017 and 2022. Similarly, in Illinois, the rise of similar video gaming machines correlated with a decline in casino revenues, leading to a 22% drop in funding for the Education Assistance Fund from 2013 to 2017.

Worse still, skill games disproportionately target low-income communities, exacerbating inequality. In Virginia, areas with skill games had a median household income of $70,517—below the state average of $80,615—and a poverty rate of 12.5% compared to 10.2% statewide. Zip codes like 23462 in Virginia Beach, which accounted for 21.5% of the city’s wagers, featured the lowest incomes and highest poverty rates. This concentration preys on the financially vulnerable, turning desperation into profit while imposing broader economic strain on neighborhoods already in need.

Beyond dollars and cents, skill games are unraveling the social cohesion of communities. Fostering a culture of gambling that lures in vulnerable groups, including youth and those facing financial instability, undermining the quality of life for many, skill games cast a shadow over community life.

Problem gambling is a core issue. A 2021 nationwide survey indicated that risky gambling behaviors rose from 7% in 2018 to 11% in 2021, with young adults under 35 being particularly affected—25% exhibited problematic behaviors compared to just 3% of those 55 and older. Ethnic minorities face disproportionate harms, including financial ruin, relationship breakdowns, and psychological distress. Unlike regulated casinos, skill games offer no player protections, leaving individuals without recourse if cheated or misled.

Accessibility compounds the problem. A national survey found that 64% of Americans familiar with skill games believe they are too easily accessible to children. This exposure risks normalizing gambling among the young, potentially leading to long-term addiction cycles that strain families and social services.

Safety is another casualty. Skill games attract criminal activity, endangering employees and customers at host businesses. In a survey by the American Gaming Association, 56% of respondents said skill games increase the risk of crime. Virginia’s Joint Legislative Audit and Review Commission reported increased assaults and robberies at establishments with these machines.

Prosecutors in Pennsylvania echo this, noting a surge in crime linked to skill games in local shops and taverns. Without regulatory oversight, these devices operate with minimal accountability, turning community hubs into hot-spots for illicit behavior. As unregulated entities, they pose threats not just to players but to entire neighborhoods, fostering environments where safety is compromised for profit.

The unchecked spread of skill games represents a menace to community well-being, preying on the poor and uneducated while diverting resources from productive uses. With 71% of survey respondents believing these machines lack essential protections and 64% expressing concern about their community presence due to lax taxation and oversight, public sentiment is clear.

Policymakers must act decisively—through regulation, taxation, or outright bans—to safeguard vulnerable populations and restore balance. As communities grapple with these hidden perils, the choice is stark: continue allowing skill games to erode our foundations, or prioritize the health and vitality of our neighborhoods for generations to come.