Compliance Updates

Pennsylvania Skill, Powered by Pace-O-Matic, Ruled a Legal Game of Skill by Another Pennsylvania Court

Published

2 years ago

April 18, 2023

Today, Pace-O-Matic announced the company won a return of property motion in York County, Pennsylvania. This property encompassing gaming machines, related equipment and cash, was wrongfully seized during raids conducted by the Pennsylvania Bureau of Liquor Control and Enforcement (BLCE).

“Pace-O-Matic’s Pennsylvania skill games are legal,” said the counsel for Pace-O-Matic, Matthew Haverstick of Kleinbard LLC. “The Commonwealth has wrongfully seized this equipment for years with no credible evidence that they are illegal. Today, the Commonwealth refused to present witnesses or make a case that the games are illegal. This issue as a matter of law is decided and the courts have ruled appropriately and consistently so.”

“Again, another Pennsylvania court has found that Pennsylvania skill games, powered by Pace-O-Matic, are legal games of predominant skill,” the Chief Public Affairs Officer for Pace-O-Matic, Mike Barley, said. “Our Pennsylvania skill game has been ruled a game of predominant skill by multiple courts across the Commonwealth. With the legality of our games upheld repeatedly, we are eager to work with the legislature to pass legislation that will fairly regulate and tax the skill game industry. Pace-O-Matic stands out among our competitors as the active driving force seeking additional regulation and taxation.”

Pennsylvania skill games, powered by Pace-O-Matic, have been ruled games of predominant skill by courts in Beaver, Dauphin, Monroe and York Counties. Additionally, after a review of the law and court decisions, our games have been returned to us in both Clearfield and Delaware Counties. Just last month, we received a favorable ruling in Dauphin County declaring Pennsylvania skill games legal. The Dauphin County Court ruling also castigates the Commonwealth and BLCE for their biased conduct.

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“All three of the Commonwealth witnesses opined that the games were predominantly games of chance,” wrote Dauphin County Common Pleas Judge Andrew H Dowling. “However, we do not find these opinions to be persuasive for a number of reasons. Initially, it is this court’s belief that the Commonwealth’s investigation shows case bias. The Commonwealth is seeking to make all machines like the Pace-O-Matic machines into illegal gambling devices and their whole approach and intent is to shut down games regardless of the actual gameplay. The fact that Officer Wentsler never played the Follow Me feature while undercover is indicative of this. Thus, the Commonwealth as a whole is biased against the games and their approach lacks case credibility.”

Earlier this year, the Monroe County Court of Common Pleas ruled that our games are legal games of skill and alleged misconduct in the investigation and prosecution of legal skill games.

Last month, Monroe County Common Pleas Judge Jennifer Harlacher Sibum wrote: “The court finds that the Commonwealth improperly withheld and misrepresented material evidence relative to the issuance of the search warrant in this matter and that such conduct warrants the suppression of the seized property.”

Pennsylvania Skill has pumped new life into the Commonwealth’s small businesses, fraternal and social clubs and veterans’ organizations by providing them with an entertainment product that the public enjoys. Meanwhile, research data proves skill games do not impact the revenue of casinos and the lottery, achieving record profits yearly. Pennsylvania skill games are manufactured in the Commonwealth, and over 90% of the profits stay inside the state. That is unheard of in gaming and many other industries. Pace-O-Matic is proud of its record and looks forward to continuing to benefit Pennsylvania businesses, clubs, and taxpayers now and in the future.

Pace-O-Matic’s Pennsylvania skill products are manufactured by Miele Manufacturing in Williamsport, which has created nearly 200 direct jobs. Many of the materials used to make up the gaming machines come from companies in the Commonwealth. Additionally, Pennsylvania skill game revenue has become a lifeline to fraternal clubs and organizations across the Commonwealth including American Legions, VFWs and local fire companies.
As part of ongoing efforts to ensure compliance, Pace-O-Matic employs a team of former state police officers to enforce all terms of contracts and codes of conduct. These contracted terms limit the number of machines, where they are placed in a location and have protections in place to prevent anyone underage from playing the devices.

In 2014, the Beaver County Court of Common Pleas ruled that Pace-O-Matic’s Pennsylvania skill games are legal as games of predominant skill. In addition, last year, the Pennsylvania Office of the Attorney General and the Clearfield County District Attorney’s office negotiated a settlement to return wrongfully seized Pennsylvania Skill games, related equipment and cash.

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Compliance Updates

eCOGRA Approved to Operate in Arizona, Indiana and Panama

Published

3 hours ago

November 22, 2024

Niji Narayan

eCOGRA, a leading international authority in Testing, Inspection and Certification services for the iGaming industry, has secured new regulatory approvals across three key jurisdictions: Arizona, Indiana and Panama. With these developments, eCOGRA strengthens its position in the U.S. and Latin American markets, offering excellence in compliance through their Quality, Speed, and Service promise.

This strategic expansion allows eCOGRA to conduct independent compliance audits and certification services in each region, addressing the growing demand for rigorous regulatory oversight in the fast-evolving global iGaming industry.

Securing approval in Arizona, where eCOGRA has now been licensed as an Event Wagering Ancillary Supplier, enables the International Testing Laboratory (ITL) to audit event wagering licensees in line with Arizona’s expanding regulatory landscape. Indiana, which introduced online sports betting in September 2019, has authorised eCOGRA to perform regulatory compliance audits, providing licensed operators with crucial assurance in meeting the state’s high standards.

In Panama, the Board of Gaming Control officially recognised eCOGRA as an Authorised Entity for Compliance Certification, specifically for slot machines and gaming software. This endorsement reinforces eCOGRA’s role as a trusted partner for operators seeking to meet stringent regulatory requirements in Latin America’s emerging iGaming sector.

“Our recent approvals in Indiana, Arizona, and Panama underline our dedication to continually expand our offering, to support our growing portfolio of clients with their global growth plans. We are committed to ensuring that we bring the same quality, speed and service that marks us out to both our clients and regulators in these dynamic markets,” said Will Shuckburgh, Group CEO of eCOGRA.

Bradley Khoury, Chief Technology Officer at eCOGRA, said: “Securing licensure as an Event Wagering Ancillary Supplier in Arizona and an Authorised Entity in Panama underscores our dedication to supporting responsible and sustainable iGaming operations. We are committed to driving trust and accountability within the industry by providing compliance solutions that uphold the highest standards.”

Compliance Updates

GLI Becomes First Laboratory to be Accredited in Maranhão, Brazil

Published

2 days ago

November 20, 2024

Niji Narayan

Gaming Laboratories International (GLI) has become the first laboratory to achieve accreditation in Maranhão, Brazil. The accreditation allows GLI to perform tests and certification for the gambling and lottery industry interested in working with lottery and fixed-odds betting operators in the state of Maranhão.

The milestone is the latest in a series of regulatory achievements for GLI in Brazil. Lottery of the State of Maranhão is the third jurisdiction in Brazil to accredit laboratories, and GLI is accredited in all and the first to be authorized in all.

Cassiano Pereira Junior, president of Maranhão Parcerias (Mapa), highlighted the importance of the partnership between the Maranhão State Lottery (Lotema) and GLI. “Every day we strive to make Lotema even better, providing greater security for its users. The partnership with GLI is a concrete way of achieving this goal, as its certification laboratories play an important role for the gaming and lottery industry, guaranteeing the conformity, security, and integrity of the products and systems used by Lotema,” Cassiano explained.

“We are grateful to the Lottery of the State of Maranhão for granting GLI the laboratory accreditation, becoming the first to be authorized in Maranhão. It is extremely gratifying to see how Lotema empower themselves by trusting the technical compliance process to provide transparency, integrity, and accountability to all the industry stakeholders through the certification process. The laboratory accreditation is the first step for a successful implementation of the certification based on jurisdictional standards, and the reason why we at GLI take this step very seriously and with great priority every time a new jurisdiction opens. We feel responsible for being part of the solution towards a fast and efficient implementation of regulations, thus supporting further local industry development and sustainable growth. We are grateful to Lotema and excited to be part of its thriving industry,” said Karen Sierra-Hughes, Vice President of Latin America, Caribbean, and Spain.

GLI has been working with regulators, lotteries, and industry stakeholders across the Latin American and Caribbean region for more than 26 years in their efforts toward regulation, sustainable growth, and eradicating illegal gaming. In Brazil, GLI has been side by side with government entities and all industry stakeholders for nearly 20 years, participating in public hearings in the Senate, Chamber of Deputies, and State government level, and in recent years, adding strategic local representation to strengthen their local support.

Compliance Updates

Betano Receives Licence to Operate in Colombia

Published

2 days ago

November 20, 2024

Niji Narayan

Kaizen Gaming Colombia, owner of the Betano.co brand, was authorized by Coljuegos to operate online betting in the country. With this new operator, there are now 16 web platforms that have the approval of the entity to market games of chance online.

“We continue to strengthen the online gaming industry. We hope that, with the entry of this new operator, we can continue to increase transfers for the health of Colombians. At this time, the platform is already operating for the betting public,” said Marco Emilio Hincapié, president of Coljuegos.

The entity is also in the process of authorizing an additional operator called Bingo Casino, which is expected to begin offering bets in the coming weeks.

It is worth mentioning that, by 2024, it is estimated that online betting portals will pay around $419,527 million to Coljuegos for exploitation rights, which represents an increase of 31% compared to the same period in 2023. All of these resources are transferred to the health system.

“We are seeing that online betting is a sector of the economy that has driven the growth of the country’s Gross Domestic Product. That is why we are working to make the market even more attractive and to provide more options to bettors,” said the president.

According to financial projections, this new operator is expected to pay Coljuegos around $21.513 billion over the next five years for operating rights and administration costs, resources that can be transferred to subsidize health and scientific research.