Republic Amusements lays off 81 Pennsylvania workers after skill games ban
The Camp Hill company says the layoffs are a direct result of the state legislature failing to regulate the machines.
CAMP HILL · A Pennsylvania skill games operator is cutting 81 jobs following a state Supreme Court ruling that outlawed its machines. Republic Amusements filed a Worker Adjustment and Retraining Notification notice, giving 60 days' notice of the layoffs. The Camp Hill company, which owns Capital Vending, Apple Vending and Entertainment Experts, said the affected workers service about 1,000 locations. Those locations include bars, restaurants, fraternal organizations and convenience stores across the state. Chief operating officer Joe Calla blamed the job losses on the failure of state lawmakers to pass legislation regulating skill games. "My family started this business nearly 64 years ago, and it's incredibly frustrating to work this hard, to build something that supports great employees and real opportunities for small businesses, only to have our elected officials refuse to take action," Calla said. The company stated that each business it serves will lose a revenue stream, potentially endangering other jobs and wages.
The Pennsylvania Supreme Court ruled on June 15 that skill games qualify as illegal slot machines under state law. Enforcement of the ban began on October 14, forcing the removal of an estimated 70,000 machines. Pennsylvania State Police have the authority to seize machines and pursue charges against operators. Police said they have agreements with six distributors, including Republic Amusements, who requested more time to remove devices but are committed to compliance.
Proposed legislation to legalize and tax the machines has stalled in the General Assembly despite support from Governor Josh Shapiro and some bipartisan lawmakers. Calla criticized the concept of "tax parity" with casinos. "All this talk of 'tax parity' from some legislators, and specifically from Governor Shapiro, makes clear they have no real intention of doing right by small business," Calla said. He argued skill games support small businesses and fraternal clubs in a way that casinos, iLottery and sports betting do not.
One Pennsylvania grocery store owner, speaking off the record, said three skill games at each of its three locations generated over $50,000 in revenue through September. The business owner said stores typically keep 30 percent of a machine's gross revenue, with the remaining 70 percent going to manufacturers and distributors. Skill games have operated without being subject to the state gaming taxes or regulatory framework that governs casinos. Republic Amusements urged lawmakers to pass what it called reasonable regulations and fees for the industry. "Regardless of how much the casinos have spent lobbying against Pennsylvania small businesses, American Legions, VFWs, and volunteer fire companies, it's time for the Pennsylvania legislature to stand up and do the right thing, to put reasonable regulation around skill games and set reasonable taxes and fees," Calla continued. Another major supplier, Miele Manufacturing, has also announced it will stop operating its skill game machines in the state.