Gambling in the USA
After Unanimous Commonwealth Court Victory, POM of PA Amends Second Commonwealth Court Complaint Aimed at Corruption by State and Local Government Agencies and “Team Casino”
On the 4th of December, Pace-O-Matic (POM) of Pennsylvania filed an amended complaint in the Commonwealth Court of Pennsylvania outlining the coordinated corruption between state and local government agencies on behalf of actors in the private casino industry, who identified themselves as “Team Casino.”
POM of PA’s complaint asks the court to order the Bureau of Liquor Control & Enforcement (BLCE) and the Pennsylvania Gaming Control Board (PGCB) from targeting POM’s Pennsylvania Skill games by publicly and privately declaring them illegal.
“Over the course of nearly seven years, at the behest and with financial support provided by the private casino industry, the Pennsylvania Gaming Control Board (PGCB), the Bureau of Liquor Control Enforcement (BLCE), and the Monroe County District Attorney’s Office have engaged in a coordinated campaign to attack and undermine the standing of POM’s legal Pennsylvania Skill games,” said Chief Public Affairs Officer, Mike Barley. “With the urging and coaching of actors representing the private casino industry, the state government ignored and/or purposefully misrepresented the law, court decisions, and basic elements of how our skill games operate in a coordinated, yet desperate, attempt to reputationally harm POM’s ability to operate a legal product in Pennsylvania.
“While the PGCB was created to oversee the private casino industry, their actions show they are wholly owned subsidiary of the industry they are intended to oversee. The BLCE is meant to interpret the law as written and respect court opinions, yet time and time again they took their orders from the private casino industry and ran a targeted campaign to harm the Pennsylvania small businesses and fraternal clubs who operate our skill games and rely on the supplemental revenue these games generate, as well as intimidate players from using our legal products. These actors were part of a national effort, led by the private casino industry in Pennsylvania and across the nation, to attack the legal skill game industry. Their behavior was appalling and does deep reputational damage as well as harms public confidence in the process.”
Yesterday, in another matter related to the legality of POM’s Pennsylvania Skill games, the Commonwealth Court unanimously ruled that POM’s 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.
The newly amended complaint names the Bureau of Liquor Control & Enforcement (BLCE), Scott Miller, James Jones, Scott Berdine, the Pennsylvania Gaming Control Board (PGCB), the Monroe County District Attorney’s Office, Monroe County District Attorney E. David Christine, Monroe County Assistant District Attorney Andrew Throckmorton, Monroe County Assistant District Attorney Michael Mancuso, Thomas J. McMahon from the Criminal Investigations Division, Chief County Detective Eric Kerchner with the Monroe County District Attorney’s Office, PGCB Senior Counsel Denise Miller-Tshudy, Deputy Chief Counsel Christopher Herrington with the Pennsylvania State Police, and former BLCE Supervisor Todd Merlina.
There is a long history of corruption by these actors that the courts have noted in their opinions over the past year.
In yesterday’s unanimous Commonwealth Court opinion, the court notes “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.”
In March, Dauphin County Court of Common Pleas Judge, Andrew H. Dowling, castigated the Commonwealth and the BLCE for their biased conduct, writing, “All three of the Commonwealth witnesses opined that the games were predominantly games of chance. 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 POM 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.”
This is the second court in as many months to rule the games were legal games of skill and allege misconduct in the investigation and prosecution of legal skill games.
In February, 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.”
PENN Entertainment announced that its stand-alone Hollywood Casino app has launched in New Jersey. The new Hollywood Casino platform is available on Android, iOS, and desktop and can also be accessed via the ESPN BET app. Customers can login to Hollywood Casino using their ESPN BET credentials, allowing for a seamless experience across PENN’s online betting and casino platforms.
Ranked by Eilers & Krejcik as the #2 overall iCasino product in the US, Hollywood Casino offers a variety of online slots, table games, and live dealer content, including original titles from PENN Game Studios, the company’s in-house casino game development studio. Hollywood Casino also includes bespoke live dealer tables and exclusive games such as the recently launched Devils Blackjack, an original title leveraging PENN’s partnership with the New Jersey Devils.
“We’re thrilled to introduce our dedicated, casino-first experience to customers across New Jersey. Hollywood Casino delivers a best-in-class experience with an extensive game library, seamless gameplay, and exclusive content from our in-house studio. This launch builds on the strong momentum we’ve gained since introducing our enhanced standalone app in December,” said Aaron LaBerge, Chief Technology Officer of PENN Entertainment.
The stand-alone Hollywood Casino platform debuted in Pennsylvania last December and is also available in Michigan.
Gambling in the USA
Bitline and Everi Announce Crypto Liquidity for Choctaw Casinos & Resorts in Industry First Development
Bitline, the only provider for casino chip access directly from cryptocurrency, has announced its first major collaboration in the U.S. casino market, teaming up with Choctaw Casinos & Resorts through its collaboration with Everi, a premier provider of financial technology and gaming solutions. This collaboration introduces cryptocurrency and digital assets as a new source of liquidity for casino patrons and marks the first time that such a functionality has been enabled within the American gaming industry.
Leveraging Everi’s CashClub’s comprehensive payment infrastructure, Bitline’s solution is able to efficiently board, screen and verify patrons looking to leverage their digital assets whilst also allowing patrons to move screened assets into custody within minutes. Bitline’s integration with Everi Cash Club, the leading financial access services suite for casino payments, will enable the technology for the benefit of Choctaw Casinos & Resorts, and is the first time that such a functionality has been possible in the U.S. regulated casino market.
Catering to the growing demand for greater cryptocurrency and digital asset integration within the casino industry, the collaboration between Bitline and Everi’s forms a transferable blueprint that offers casino operators and their patrons an alternative way to manage funds, access liquidity, and leverage the benefits of cryptocurrency and other digital assets.
This milestone reflects a strategic shift in how casino operators view and manage financial interactions with their guests. The introduction of cryptocurrency as a liquidity solution provides additional options for guests and lays the foundation for Choctaw Casinos & Resorts as it looks to the future of gaming sector finance, setting a new standard in financial accessibility and convenience.
“Working with Choctaw Casinos & Resorts and Everi to make this a reality is a historical moment for both the casino and blockchain industries. Bitline was conceptualized to advance the gaming sector and offer a wider variety of financial options for the casino industry,” said Richard Jones, CEO at Bitline. “We’re entering an era where digital assets can fundamentally enhance the gaming experience, providing casino operators with a future-ready financial framework that can expand and evolve as the industry does. This collaboration is just the beginning of our vision to modernize casino payment capabilities on a global scale.”
Victor Newsom, SVP Product Management, Payments Solutions at Everi comments “This unique integration combines BitLine’s additional payment accessibility options with Everi’s ability to enable seamless, secure, and regulatory compliant financial transactions for casino patrons. Designed from the ground up to exceed the rigorous compliance demands of the industry as well as the discerning expectations of gaming VIPs around the world, Choctaw’s patrons are now no longer limited to the access, times, amount, and speed constraints of the legacy financial systems. This also significantly reduces risk for our casino customers, such as Choctaw.”
“We are excited to be the first casino in North America to offer our guests another way to play,” said Thomas McDonald, Senior Director of Cage and Credit at Choctaw Casinos & Resorts. “Through our long-term relationship with Everi, a leader in fintech solutions, we will continue to invest in innovative offerings that provide the discerning gaming VIP access to funds in a safe and secure manner.”
The Choctaw Casinos & Resorts integration represents only the first phase of Bitline’s broader mission to bring cryptocurrency solutions to casinos and casino patrons worldwide. As cryptocurrency and digital assets continue to gain traction in the gaming sector, Bitline’s easy to integrate and patented payment model stands poised to become a key player in transforming gaming finance. Future plans include expanding services across other major casinos and gaming markets, both domestically and internationally, establishing cryptocurrency as a new standard feature of the gaming experience.
The solution is to be formally rolled out on March 7, 2025, with the first transaction taking place at Choctaw’s Durant, Oklahoma, location.
The Michigan Gaming Control Board (MGCB) has taken decisive action against five offshore online casinos, sending cease-and-desist letters for violating state gaming laws. These websites offer a variety of casino games, such as slots, poker, blackjack, Keno, bingo, and game show games, in addition to sports betting.
The following unlicensed operators are now under scrutiny following the MGCB’s action:
BetWhale Casino, Curaçao
Black Lotus Casino, owned by TD Investments Ltd., Belize
Coins Game Casino, Curaçao
Love2play Casino, Curaçao and Costa Rica
Orion Stars 777 Players, Sichuan Province, China
“These illegal platforms not only violate Michigan’s gaming regulations but also put consumers at risk by offering unreliable withdrawal options and lacking essential consumer protections. Our top priority is safeguarding Michigan residents by ensuring that all online gaming activities are conducted legally and safely. These operators must stop their activities or face additional legal consequences,” MGCB Executive Director Henry Williams said.
Investigations into these illegal activities have revealed that the operators are in violation of multiple Michigan state laws.
Despite offering various payment options like Visa, MasterCard, PayPal, and cryptocurrencies (e.g., Bitcoin and Ethereum), these illegal operators impose strict withdrawal conditions, often requiring players to wager their initial deposits multiple times before they can access their winnings.
The MGCB has given these operators 14 days from the date of receipt of the cease-and-desist letters to halt their illegal activities.
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