Compliance Updates
Greenwood Gaming, Parx Casino Bring Baseless Lawsuit Against Pace-O-Matic and Pennsylvania Small Businesses & Fraternal Clubs Operating Legal Skill Games
Pace-O-Matic (POM), a gaming company that does significant business throughout Pennsylvania, today released the following statement in response to a baseless lawsuit brought by Greenwood Gaming and Parx Casino against POM and thousands of small businesses and fraternal clubs operating skill games across the state.
“The lawsuit against legal skill games launched by Parx Casino and Greenwood Gaming is meritless and attacks thousands of Pennsylvania businesses who operate skill games and rely on their revenue. This lawsuit ignores the law and legal precedent. We feel confident, as we always have, in the legal status of our skill games.
“Parx Casino is attempting to shield its efforts, through various consultants, and use the levers of government to harm legal skill games, and in particular POM’s Pennsylvania Skill games.
“Unfortunately, yet not surprisingly, many of the arguments made in this complaint are verbatim to attacks and opinions drafted by the law firm, Eckert Seamans Cherin & Mellott, LLC (Eckert), which has worked for Parx Casino. This is puzzling because a federal judge has ruled that Eckert “acted in bad faith” in shielding and misrepresenting their relationship with POM and Parx Casino. (See lawsuit summary below.)
“Eckert had been hired by POM but then deceived POM by taking millions of dollars in legal fees to represent the skill gaming company, while at the same time, representing Parx Casino which opposes POM’s operations in the Commonwealth. When confronted with the conflict of interest, Eckert first denied their actions, then swore to a federal district court that they would not engage in a future conflict. They then continued to work surreptitiously against POM and the small businesses and fraternal clubs operating skill games while continuing to represent Parx Casino.
“POM continues to actively work with legislators in Harrisburg to further regulate and tax the skill game industry.”
Background on POM’s Federal Lawsuit Against Eckert:
On, July, 11, 2022, POM filed a major fraud claim against Eckert, which is a major law firm with more than 300 lawyers across a network of 15 offices, including Philadelphia, Harrisburg, Pittsburgh, Boston, Washington, D.C., and Richmond, VA.
POM’s lawsuit contends that Eckert “took up arms” against POM on behalf of the Philadelphia-based Parx Casino; that Eckert “actively participated in and covertly manipulated litigation” in Pennsylvania Commonwealth Court adverse to POM’s interests; and that Eckert participated in a campaign intended to “destroy POM’s business by attempting to convince elected and appointed public officials that POM’s games are gambling devices that should be seized and outlawed.” In particular, Eckert used its influence to improperly target the Pennsylvania Gaming Control Board.
When confronted by POM’s allegation that Eckert was double-dealing and had breached its professional duties of loyalty and confidentiality, Eckert denied the claim, while seeking to shield the law firm’s emails with Parx Casino which would, if made public, reveal that numerous lawyers at Eckert, led by Mark Stewart, co-chair of Eckert’s gaming practice group, were indeed simultaneously taking money from and representing Parx Casino.
Parx Casino calls itself “the #1 casino in Pennsylvania” and is owned and operated by Greenwood Racing Inc.
Eckert, working on behalf of Parx Casino and its consultants, sought to block POM from doing business in Pennsylvania.
The suit also alleges that Eckert “violated their most basic fiduciary duties and concealed and misrepresented material facts to POM’s great detriment. As a result, POM is entitled to appropriate damages.
In November 2021, U.S. Magistrate Judge Joseph Saporito, Jr. found that Eckert acted in “bad faith” by seeking to withhold emails that demonstrated Eckert was representing both sides.
Eckert, Saporito ruled, “actively and clandestinely managed and participated in the representation of Parx in the Commonwealth Court litigation against its other client, POM. Moreover, based on our in camera review of the purportedly privileged documents, it did so with full knowledge that the conflict asserted by POM precluded its active and continuing representation of Parx in the Commonwealth Court litigation.”
Saporito continued, “in light of the clear and obviously intentional subterfuge demonstrated in the purportedly privileged documents, we have no difficulty concluding that these documents evidence an intent by Stewart and Eckert to play fast and loose with the courts.”
Eckert appealed Saporito’s ruling, which required Eckert to turn over to POM many internal emails. On July 5, 2022, Federal Judge Jennifer P. Wilson ruled for POM, declaring, “in making inconsistent representations to the court, Eckert has attempted to obstruct the discovery process as to the central issue in this case: whether Eckert breached its fiduciary duty to POM by representing Parx, a party with adverse interests, at the same time that it represented POM.”
Pace-O-Matic is a leading developer of legally compliant games of skill in the United States. Its games are played in thousands of small restaurants and bars, along with many social halls such as American Legion and Veterans of Foreign War posts. Our games generated millions of dollars in revenue for businesses and clubs in Pennsylvania last year and its games can be found in thousands of businesses, mostly small mom-and-pop shops, along with many fraternal and veterans’ organizations.
The Arizona Department of Gaming (“ADG”) is issuing this Consumer Protection Alert to inform Arizonans of a concerning nationwide trend that has now reached Arizona. Fraudulent operators are falsely claiming that legitimate Arizona casinos have launched online gaming platforms. These illegal online casino platforms are presenting themselves as legitimate platforms by offering illegitimate or illegal gaming services. Online casinos (often referred to as “igaming”) are not legal in Arizona. Any claims otherwise should be treated as highly suspicious. These scams not only put players at financial risk but also undermine the integrity of Arizona’s regulated gaming industry.
ADG has received multiple reports of fraudulent online casinos targeting Arizonans, as well as complaints from patrons who have been misled. These scams are being widely disseminated through social media advertisements directing consumers to download apps and visit websites, and are enticing unsuspecting consumers to spend money on illegitimate games.
The Arizona Department of Gaming urges residents to verify the legitimacy of any online gaming platform before engaging in play. Many of these operations are not legal or regulated, leaving users vulnerable to fraud, identity theft, and other serious risks. Due to their unregulated nature, ADG is unable to resolve complaints and disputes arising from unregulated and illegal gaming sites, leaving victims with little to no chance of recovering lost funds. It is important to remember that just because you can download the app, visit the website, and play the games, it does not mean it is a legitimate and legal gaming platform.
In light of these developments, the Department encourages both Arizona residents and visitors to visit our website to find a list of all regulated casinos and licensed event wagering and fantasy sports operators legally taking bets in Arizona. The list can be found on the Department’s website at gaming.az.gov. Legal, regulated operations provide important consumer protections not found in the illegal market, helping ensure a safer experience for participants.
The Dangers of Illegal Online Casinos:
Fraudulent online casinos often mimic reputable platforms, using familiar branding, flashy advertisements, and enticing promotions to lure victims. These unregulated operations leave participants vulnerable to:
- Financial loss through fake gaming platforms or fraudulent prize fees.
- Identity theft resulting from shared personal or financial information.
Common Red Flags of Illegal Platforms:
These deceptive platforms often use tactics such as:
- Mimicking branding of legitimate Arizona casinos, including similar or actual logos and names.
- Enticing promotions that appear too good to be true, such as excessive bonuses or guaranteed wins, luring players into providing sensitive information.
- Incorrect Website URL/Mobile App – Fraudulent sites often use web addresses that closely mimic legitimate casino names but have slight misspellings or different domain extensions (e.g., .net instead of .com).
How to Protect Yourself:
- Check before you bet: verify the licensed and regulated casinos and operators in Arizona.
- Be skeptical of advertisements or promotions on social media promising guaranteed wins or no-risk gaming.
- Avoid sharing personal or financial information with unverified sources.
- Look for sites that include resources for dispute resolution, as well as self-exclusion, responsible gaming messaging, or a toll-free helpline number.
Reporting Suspicious Activity, Fraud, or Identity Theft:
If you encounter fraud, identity theft, or suspicious online gaming operations, apps, or websites impersonating a casino or claiming to be a licensed operator in Arizona, please take the following steps:
- Document the website URL, app, business name, and any promotional materials associated with the fraudulent operator.
- Report it to ADG at [email protected] and the Arizona Attorney General’s Office Consumer Information and Complaints Unit at (602) 542-5763 or by visiting azag.gov/consumer.
- Cease activity on the platform and monitor financial accounts for unauthorized transactions.
If you suspect identity theft, report it to the Federal Trade Commission (“FTC”): for help in English, go to IdentityTheft.gov and for help in Spanish, go to RobodeIdentidad.gov.
Canada
AGCO issues $110,000 in penalties to BetMGM Canada for offering cash to induce new gambling customers
The Alcohol and Gaming Commission of Ontario (AGCO) has served BetMGM Canada Inc. with an Order of Monetary Penalty (OMP) of $110,000 for violations of the Registrar’s Standards for Internet Gaming.
In two separate incidents in 2024, BetMGM engaged marketing companies who offered cash to members of the public in return for opening new BetMGM accounts. The marketing activities occurred in public forums, such as a major national trade conference. Under AGCO’s Standards, operators are responsible for the conduct of their third-party suppliers who are contracted to support the operator’s Ontario gaming business, and must require their third-parties to meet Ontario laws, regulations and standards (Standard 1.19).
Ontario is one of the first jurisdictions in the world to establish and enforce rules that strictly limit high-risk inducement advertising and marketing in the online gambling industry. Registered iGaming operators are prohibited from offering gambling inducements, bonuses and credits as part of their broad public advertising and marketing activities (Standard 2.05). These Standards exist to protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm.
A registered operator served with an OMP by the AGCO has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), which is an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.
QUOTE
“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities. The AGCO monitors the activities of all registered operators and their third-party suppliers to ensure they are meeting our high standards and we continue to take strong action to ensure they operate within the public interest.”
Dr. Karin Schnarr, Chief Executive Officer and Registrar – AGCO
ADDITIONAL INFORMATION
BetMGM Canada Inc. failed to comply with the Registrar’s Standards for Internet Gaming. Specifically, the licensee failed to comply with the following provisions of the Standards:
- 1.19 Operators are responsible for the actions of third parties with whom they contract for the provision of any aspect of the Operator’s business related to gaming in Ontario and must require the third party to conduct themselves in so far as they carry out activities on behalf of the operator as if they were bound by the same laws, regulations, and standards.
- 2.05 Advertising and marketing materials that communicate gambling inducements, bonuses and credits are prohibited, except on an operator’s gaming site and through direct advertising and marketing, after receiving active player consent.
Contrary to the Standards, BetMGM Canada Inc. and/or their affiliates allegedly engaged in the following activities:
| a) | On or about January 13 and 14, 2024, BetMGM representatives were alleged to have attended the National Franchise Show and were offering $100 in cash to new players for opening a new account and depositing $15. |
| b) | On or about March 11, 2024, BetMGM acknowledged that its marketing affiliate “Above the Street” had engaged in prohibited inducement marketing. The conduct resulted in 377 player sign-ups and $127,180.00 in commissions to “Above the Street”. |
| c) | On or about April 13, 2024, another BetMGM marketing affiliate “Maple Leaf Marketing” engaged in prohibited inducements and marketing to induce on-site activations and acquire new players. The conduct resulted in 94 player sign-ups and about $34,000.00 in commissions paid to “Maple Leaf Marketing”. |
4ThePlayer has officially received game certification for the Brazilian iGaming market, reinforcing its commitment to regulated markets worldwide. This milestone enables the company to bring its acclaimed player-first gaming experiences to a brand-new audience.
Approved by Gaming Associates and eCogra, these certifications allow licensed operators in Brazil, to offer 4ThePlayer’s high-quality, player-centric games through their existing platform integrations with Relax Gaming and Yggdrasil.
Certified game titles include 4 Fantastic Fish, 4K Ultra Gold, and 5 Wild Buffalo as well as their innovative and unique table games 100 Bit Dice and 1000x Busta, all top-performing, player-favorite releases. Moving forward, all 4ThePlayer games will be certified for Brazil from day one.
Beyond its existing portfolio, 4ThePlayer is committed to delivering region-tailored content, leveraging its local team in Brazil to develop engaging, culturally relevant gaming experiences set to launch later this year. The first one of these titles is 4 Fantastic Fish Amazon Adventure, the latest in their player favourite 4 Fantastic series, coming via Yggdrasil in April.
Henry McLean, Co-Founder, Commercial & Marketing Director at 4ThePlayer, expressed his enthusiasm: “We are thrilled to bring our unique, player-centric games to Brazil, a market full of energy and potential. These game certifications are a major milestone, reinforcing our dedication to regulated markets and delivering best-in-class entertainment. We look forward to collaborating with operators and creating unforgettable gaming experiences for Brazilian players.”
With this certification, 4ThePlayer continues its mission of providing exceptional, player-focused gaming worldwide, ensuring its engaging and innovative titles reach new markets and audiences.
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