Texas opinion sharpens distinction between skill games and gambling devices

Lone Star Skill, powered by Pace-O-Matic, has welcomed a Texas Attorney General opinion that distinguishes skill-based amusement games from machines that combine elements of chance and skill.

The opinion, issued by Texas Attorney General Ken Paxton, addressed a request from State Senator Bob Hall concerning electronic amusement devices that include both chance-based and skill-based gameplay. 

According to the opinion, a machine may still be considered a gambling device under Texas law if chance plays a role in determining whether a player receives something of value.

The guidance forms part of a broader debate in Texas over so-called "skill games", a category of machines that has generated legal disputes across several US states. 

Regulators and law enforcement agencies have increasingly scrutinised machines installed in convenience stores, bars and other non-casino venues, arguing that some products marketed as skill-based function similarly to slot machines.

Pace-O-Matic, which develops skill-based amusement games operating in multiple states, has long argued that its products differ from traditional gambling devices because outcomes depend entirely on player decisions rather than random chance. 

The supplier has repeatedly called for regulatory frameworks that distinguish between games based on skill and those based predominantly on chance.

The latest opinion follows a series of court proceedings in Texas involving Pace-O-Matic-linked machines. In 2025, the Sixth Court of Appeals in Texarkana upheld a lower court ruling concerning devices seized in Fannin County, a case frequently cited by supporters of skill-based gaming as evidence that certain machines can operate lawfully under Texas law.

Pace-O-Matic spokesperson Mike Barley said: "The Attorney General's opinion reaffirms the definition of true games of skill and slot machines that have falsely marketed gambling devices as skill games."

While Attorney General opinions carry legal weight in guiding state officials, they do not override court judgments. Lone Star Skill said the latest guidance relates to machines that rely on chance-based outcomes rather than products it describes as entirely skill-driven.

The issue remains significant for Texas policymakers as lawmakers, courts and regulators continue to assess how existing gambling laws apply to evolving gaming technologies outside the state's regulated casino sector.

Last month, the Karnataka High Court ruled that the card game Andar-Bahar constitutes a game of skill rather than gambling, quashing criminal proceedings against several individuals accused of gambling offences. The decision highlighted continuing legal debates globally over how courts distinguish skill-based activities from games of chance.