Compliance Updates
Pennsylvania Commonwealth Court Unanimously and Definitively Rules Pennsylvania Skill, powered by Pace-O-Matic, a Legal Game of Skill
The Commonwealth Court of Pennsylvania unanimously ruled that Pace-O-Matic’s (POM) Pennsylvania Skill games are legal games of skill.
In the case, originally brought forth in Dauphin County, the Commonwealth Court ruled that the POM game is a game of predominant skill, not a game of chance, and that the “POM machines are not slot machines [and] the POM machines are not illegal” as noted in the ruling.
“This is a major victory for Pennsylvania Skill, but it’s equally a victory for our operators and the thousands of small businesses, volunteer fire companies, and fraternal clubs who have come to depend on the revenue our games provide,” said Paul Goldean, President and CEO of Pace-O-Matic. “This is also a win for many players across the commonwealth who enjoy skill games as a popular entertainment option. Our games have always been legal, and this ruling proves that once and for all.”
In the ruling, the Commonwealth Court states explicitly that “POM machines are not slot machines” and goes on to reject the Commonwealth’s intentionally broad definition of a slot machine to include games of predominant skill, going so far as to state that “such an interpretation is inappropriate.”
The court agrees with the appellees that “substantial evidence supports the trial court’s legal conclusion that skill predominates over chance” in the POM game. The court also states in the ruling that the Commonwealth’s argument that the game’s skill-based elements are secondary, insignificant, or hidden is “factually untrue.”
The court therefore concludes that “POM machines are not gambling devices” and “therefore, do not constitute derivative contraband” and that “these electronic games are not illegal.”
Lastly, the court notes that “the Commonwealth was aware of adverse legal authority [referring to the Pinnacle case in which the POM game was determined a game of skill], it was required to cite and distinguish it.” Yet the Commonwealth omitted it. The court goes on to state that they “caution the Commonwealth that the Pennsylvania Rules of Professional Conduct require candor toward the tribunal and, specifically, the disclosure of directly adverse authority.
Chief Public Affairs Officer Michael Barley added, “We have won every Pennsylvania county court decision that has questioned the legality of our games, and this ruling should put an end to any discussion on the matter. Additionally, the Court took note and objected to the continued actions of state actors who have purposefully ignored the law, and court decisions, continually and purposefully misrepresented how our games operate, and put their fingers down on the scales of justice in a reckless attempt to have our skill games found illegal. Largely at the behest of the Pennsylvania Gaming Control Board and a handful of casinos, led by Parx Casino. Thankfully, the court saw through those actions, analyzed the facts, and ruled appropriately our games are legal games of skill.”
Earlier this month, the Commonwealth Court of Pennsylvania also affirmed the return of several skill game terminals by the Court of Common Pleas of Monroe County – in doing so, also ruling the POM game a legal game of skill.
“Now that this ruling is in place, I hope we can focus on the more pressing matter of regulating and taxing skill games,” Barley concluded. “We are urging the General Assembly to pass reasonable legislation, not only to support the small businesses and organizations who benefit from skill games but to generate tax revenue for the state while also to giving law enforcement the framework they need to tackle illegal gambling. It’s a win-win for the commonwealth.”
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.
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.
Former New Jersey Governor Chris Christie has backed Texas to legalise online sports betting in the state’s next legislative session.
Christie helped pave the way for sports betting liberalisation across the US by bringing the Supreme Court case that led to the repeal of PASPA.
The case was fought and won by prominent conservative lawyer Ted Olson, who Christie hired to argue the case for states to make their own decisions on sports betting. Olson died last week at the age of 84.
After Missouri became the 39th US state to legalise sports betting in some capacity, attention has quickly turned again to the big three states of Texas, California, and Florida.
“I think it’ll happen in Texas in the next legislative session,” said Christie, speaking to Covers.com. The next session is due to commence in Texas on January 14, 2025.
Christie is less confident about California, however, where competing sports betting ballots failed in 2022 amid a bitter dispute and lobbying war between online operators and local tribes.
California is seen as essential to the future prospects of US sports betting operators, given its size and wealth and dramatic impact on the country’s total addressable market (TAM).
“I don’t know about California,” said Christie. “This really takes gubernatorial leadership, and Gavin Newsom has got to decide if this is one of the issues he wants to lead on.
“Without gubernatorial leadership, the legislature won’t do it because they’re pulled like taffy in too many directions by too many different interests. Without the governor pushing for it, I just don’t think it’ll happen.”
Despite another potential setback in California, Christie has backed sports betting to penetrate pretty much every state eventually.
“I really believe sports betting is inevitable to go just about nationwide, because people in America love their sports, they just do,” he said. “I think it is in the leagues’ best interests to grow their audience. The government gets some piece of the pie out of that which they enjoy, and the public seems to be pretty happy for the most part.”
Depending on expansion, US sports betting could, in theory, reach every state. It would then become a national issue, but Christie has warned the federal government not to interfere.
“Let the states handle it,” he said. “The states are doing fine. You haven’t heard of anything awful or irreversible happening since each state has been involved and they should have the ability to decide whether they want gambling or not.
“I don’t think the federal government should have anything to do with it and I don’t think they ever should have. I don’t think they have to be babysitters for the governors of the country.”
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