Three elements, not two
In law, gambling requires three things at once: consideration, which is what a player pays; chance, where winning is random; and reward, the prize. All three must be present. Remove any single one and the activity is not gambling.
A skill game removes chance. The player, and only the player, determines the outcome. A player can win more than their play value every time they play. No chance, and no fixed payout. That is the whole distinction, and it is a legal one rather than a marketing one.
Why it is not a slot machine
A slot machine and a video gaming terminal both pay out on chance. That is why they are confined to casino states and licensed gaming floors. Because a skill game does not rely on chance, it is permitted in places where casino-style gaming is not.
The practical consequence for a store owner is that a skill game can sit on an ordinary convenience store or restaurant floor, in markets where a slot machine could never be placed.
Who carries the legal risk
Not the location. Pace-O-Matic is the only skill game developer that provides contractual legal indemnification, covering the cost of defending the product. Republic carries the licensing and compliance work on top of that.
Regulation differs state by state, and it moves. Republic operates only in markets where the equipment is permitted. If you want a direct answer about where your state stands today rather than a general one, ask us.