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Compliance Updates

Pennsylvania Commonwealth Court Says Pace-O-Matic’s Pennsylvania Skill Games Are Legal

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Pace-O-Matic of Pennsylvania (POM of PA), the entity that markets Pennsylvania Skill games, received a substantial victory in today’s Commonwealth Court opinion, which makes clear our games are legal.

Matt Haverstick, Esq., who represented POM of PA in the lawsuit said, “The Commonwealth Court agreed that our games are presumptively legal. The injunction was denied for locations that have illegal gambling devices comingled with our legal POM games. We are seeking clarification that the injunction is still in place for locations that have only POM games. Ultimately, the Court was concerned that the injunction might hamper the Bureau of Liquor Control and Enforcement’s ability to conduct investigations into illegal gambling and slot machines where a POM machine may also be located. That is a position that POM of PA supports as we have been on the front lines pointing out the proliferation of illegal gambling devices and min-casinos.”

Click here to read the opinion.

The Court made it clear that they consider our games legal, “This Court recognizes that unless, or until, POM Games are considered to be illegal gambling devices under the Crimes Code, POM may suffer harms to its reputation and property interests as a result of the seizures.”

The Court also made it clear that they saw the difference between “POM machines” and illegal gambling operations, “The tiny fraction of POM machines that have been confiscated as part of larger investigations and confiscations into illegal gambling operations, and the fact that POM does not intend to challenge these isolated seizures as long as POM is not specifically targeted, the Court finds no improper conduct by the PSP that warrants the imposition of an injunction at this time.”

Pace-O-Matic Director of Communications Mike Barley added, “We understand the confusion that exists as law enforcement has a difficult time discerning between what is a legal skill game and what is an illegal gambling device. Our commitment is to continue working with the legislature to regulate, tax and provide strict enforcement of the legal skill game industry. The revenue we are providing to small businesses and fraternal clubs, the jobs that are being created and the tens of millions of dollars we have paid in taxes to the state prove that we are laying a solid foundation for the legal skill game industry that benefits Pennsylvania.”

Pace-O-Matic’s Pennsylvania Skill products are manufactured by Miele Manufacturing in Williamsport, which has created over 100 manufacturing and manufacturing-related positions in our Commonwealth. Additionally, Pennsylvania Skill games are helping to support and grow businesses that were struggling and are now thriving and creating jobs. The revenue generated by our games has become a lifeline to fraternal clubs and organizations across the Commonwealth, including American Legions, VFWs and local fire companies. Pennsylvania Skill has donated over $700,000 over the past year to local charities, including food banks, children’s hospitals and senior centers.

As part of our ongoing efforts to ensure compliance, Pace-O-Matic employs a team of former state troopers to enforce the terms of our contracts and our codes of conduct. These contracted terms limit the number of machines and where they are placed in a location and have protections in place to prevent anyone underage from playing our devices.

In 2014, the Beaver County Court of Common Pleas ruled Pace-O-Matic’s Pennsylvania Skill games are legal as games of predominant skill. That court decision can be found by clicking here.

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Compliance Updates

Chicago City Council Members Pushing to Legalize Video Gambling

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Chicago City Council members are reviving plans to legalize video gambling in the city, introducing two ordinances that could bring hundreds of terminals to O’Hare and Midway airports and allow machines citywide for the first time.

One ordinance, introduced by Alderman Gilbert Villegas (36th), targets the city’s airports, where he sees both political feasibility and high revenue potential.

“The General Assembly has provided this opportunity through the casino bill. Yet, we’re not taking advantage of capturing dollars from one of the busiest airports in the country,” Villegas said.

“People are there, in some cases, one or two hours before. If their flight is delayed or they’re making a connection and there is a delay, there’s an opportunity to capture an audience that may not even be going to the city.”

Villegas’ proposal includes a $10,000 license fee per location, plus $500 per terminal. A separate terminal license would cost $1000, with an additional $500 per unit. If 400 machines each generated $800 daily, Villegas estimates annual revenue could reach $116.8 million, with the city taking a share through licensing and taxes.

Alderman Anthony Beale (9th) is pushing for a broader citywide expansion. His ordinance would legalize video gambling throughout Chicago, including in neighborhood bars and restaurants.

“We need to do it citywide and at the airports. We need the revenue and this administration has not shown a willingness to find new revenue that’s not gonna hit the taxpayers in every household,” Beale said.

Beale’s ordinance proposes a $500 license fee per location and a $1000-per-terminal charge for both the site and the machine itself. He has criticized the administration for dismissing the potential benefits, arguing that the current tax formula could be renegotiated with state lawmakers.

“That’s because they haven’t shown the willingness to go down to Springfield and change the formula. I’m hoping that submitting these ordinances will finally convince them to send a team down there,” he said.

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Prime Skill Games Inc. Official Response to AGCO Press Release

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Prime Skill Games Inc. Official Response to AGCO Press Release

 

As CEO of Prime Skill Games Inc., I feel compelled to address recent comments made by the Alcohol and Gaming Commission of Ontario regarding so-called unapproved gambling machines in convenience stores across the province.

Let me be perfectly clear

Our machines are not gambling devices. They are entirely skill-based, fully compliant with the law, and built on the fundamental idea that players are in control. The outcome of every session is determined solely by the player’s ability, not by random chance.

Prime Skill Games is proud to be the only true skill game operating in Ontario today.

We categorically reject any suggestion that our products fall under the definition of unregulated gambling. Such statements are inaccurate, misleading, and fail to recognize the critical distinction between games of skill and games of chance.

We stand firmly behind the legality of our machines and the integrity of our operations. We will demonstrate this through every available means, whether through legal documentation, expert analysis, or, if necessary, before the courts. We are prepared and unafraid to defend the truth.

To our players, partners, and business community, we want to reassure you that our mission has not changed. We are committed to offering a responsible, transparent, and innovative entertainment experience. We will not be intimidated by broad and baseless accusations, and we will continue to move forward with strength and clarity.

 

Sincerely

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Matt Zamroźniak

Chief Executive Officer

Prime Skill Games Inc.

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Canada

AGCO takes action to remove unapproved gambling machines from Ontario convenience stores

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AGCO takes action to remove unapproved gambling machines from Ontario convenience stores

 

The Alcohol and Gaming Commission of Ontario (AGCO) is continuing its efforts to combat unregulated gambling and protect the public. As part of these efforts, the AGCO took steps this week to revoke the lottery seller registrations of a number of retailers in the GTA that were found to be offering unapproved electronic gambling machines under the Prime Slot brand.

The AGCO regulates all gambling in the province of Ontario to ensure gambling products and gaming sites are held to high standards of game integrity, player safety, and the protection of minors and vulnerable individuals.

Over the past decade, unregulated gaming machines have increasingly proliferated across North America. While they largely rely on chance like traditional slot machines, manufacturers have claimed they are games of skill and have installed terminals in convenience stores and other locations where gaming machines would otherwise be prohibited.

The AGCO will continue to take every action within its authority to protect the public against the risks that these unregulated machines pose – particularly in locations easily accessible to children and youth.

A registered lottery seller served with a Notice of Proposed Order to revoke their registration has the right to appeal the AGCO’s action within 15 days to the Licence Appeal Tribunal (LAT), an adjudicative tribunal that is part of Tribunals Ontario and independent of the AGCO.

“Unapproved gambling machines have no business being in convenience stores or other locations, particularly those that are available to children and youth. ” – Dr. Karin Schnarr, Chief Executive Officer and Registrar, AGCO

Background:

Under Section 10(b) of the Gaming Control Act, the Registrar shall refuse to register an applicant as a supplier or to renew the registration of an applicant as a supplier if there are reasonable grounds to believe that the applicant will not act as a supplier in accordance with law, or with integrity, honesty, or in the public interest.

Under Section 12 of the Gaming Control Act, the Registrar may propose to suspend or to revoke a registration for any reason that would disentitle the registrant to registration or renewal of registration under section 10 if the registrant were an applicant.

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