Light & Wonder Enters Nebraska’s Skill-Games Market, One of Few Regulated in the US

Light & Wonder (LNW) is entering Nebraska’s regulated skill-games market with six games through an expanded partnership with Betson Enterprises.

The games will be specifically curated for the state’s skill games and will include titles like Gold Fish Feeding Time Treasure, Bier Haus, Lock it Up – Dragon Fire, and Zeus. They will be available on the company’s KASCADA Dual Screen cabinet.

The move expands LNW’s footprint in the skill game sector, after a successful collaboration with Betson in Illinois, Georgia, and Pennsylvania. The latter, an arcade and other games distributor, will open a new distribution facility in La Vista, Nebraska, to accommodate licensed terminal operations in the state.

“We are thrilled to bring our player-favorite games to the Husker state,” said Brian Pierce, Chief Commercial Officer, Gaming at Light & Wonder.

“Working alongside Betson Enterprises allows us to continue entering new markets with our innovative game content to create the best gaming experiences for new customers.”

Nebraska’s Regulated Approach

Nebraska is one of the few states that regulates skill-based amusement devices.

These games visually resemble casino slots, but operators argue they involve an element of skill. That could be the player’s memory, pattern recognition, or speed, which influences the outcome. Manufacturers say that these machines differ from traditional slots, which rely entirely on chance.

In Nebraska, operators of skill games or “mechanical amusement devices” pay a 5% tax on net operating revenue. The proceeds are distributed as follows:

• Property Tax Credit Cash Fund: 40%
• Charitable Gaming Operations Fund: 20%
• Tourism Promotion Fund: 10%
• Remainder goes to the General Fund, the Compulsive Gamblers Assistance Fund, and local jurisdictions.

Licensing fees range from $100 to $5,000 annually per device, depending on operator size. Venues can host four to 15 machines, depending on square footage.

Nebraska currently has about 5,800 registered devices in locations such as restaurants, bars, social clubs, and fraternal halls.

Skill Games and Small Businesses

In Nebraska and beyond, skill games have become a primary source of revenue for many small businesses, including bars and convenience stores.

Supporters claim the machines offset rising costs and increase foot traffic. In regulated markets like Nebraska, proceeds are shared between the business owner and the machine operator, with the state collecting taxes.

In states with unclear legal status, business owners share revenues but don’t pay taxes and face uncertainty over legality. Without a licensing framework, machines may be seized by authorities, prompting some small businesses to join manufacturers in legal challenges against regulators.

Elsewhere: A Patchwork of Laws and Court Battles

While Nebraska skill games are legal and regulated, many states across the US are involved in various legislative and legal battles over the games’ legal status.

Pennsylvania

Pennsylvania is home to the highest number of skill games, but they operate in a legal gray area. The Attorney General has deemed them illegal, but some courts have ruled that skill games don’t classify as gambling devices.

Lawmakers have long debated whether to regulate or ban them. This year, there were three bills on regulation, but they varied significantly, and the legislature was unable to agree. Gov. Josh Shapiro has long called for regulation to support the state’s budget.

While lawmakers can’t agree, the Pennsylvania Supreme Court could decide the matter as it agreed to weigh in last year.

Virginia

Virginia also had a long history of court and legislative battles over skill games.

In 2020, the state banned skill games, but they continued to operate due to a legal challenge. Then in 2023, the state’s Supreme Court confirmed the prohibition.

In 2024, lawmakers passed a bill to regulate the machines, but Gov. Glenn Youngkin vetoed it, leaving skill games illegal.

In an unexpected ruling, in April this year, a county judge ruled that a redesigned game by manufacturer Pace-O-Matic does not meet the legal definition of an illegal gambling device.

The ruling found that certain modified skill games are legal under current law.

California

Recently, manufacturer Pace-O-Matic, which has led the charge against terminal seizures in multiple states, filed a lawsuit against the California Department of Alcoholic Beverage Control (ABC) for the wrongful seizure of its machines from two locations.

Court Rulings Elsewhere

In July, a Tennessee court ruled that “No Chance Games,” slot-like devices manufactured by Torch Electronics, marketed as skill-based machines, are illegal under state law.

Earlier this year, a Texas appeals court reaffirmed a 2024 District Court decision that POM’s devices do not qualify as gambling machines under state law. The court ordered their return after seizures by authorities.

Meanwhile, at the beginning of 2025, the North Carolina Court of Appeals ruled that skill games are illegal. It ruled against manufacturer No Limit Games, which challenged attempts to seize its machines.

Around the same time, the Kansas Supreme Court dismissed a lawsuit by a Pace-O-Matic subsidiary. The company sought to confirm the legality of its skill game Dragon’s Ascent.

In 2024, a Kentucky state judge upheld the ban on skill games, which went into effect in 2023.