"Сколько время" is grammatically incorrect, but this is indeed the way some people speak. This is kind of an elision, when people don't pronounce words fully. You can also hear it saidpronounced something like "скоко времи". However, this is a spoken phenomenon for the most part; it's strange to see it in print.
BTW, even "сколько времени" is considered incorrect because время is uncountable. But in modern usage, "сколько времени" is a de facto standard.