Compliance Updates
Greenwood Gaming, Parx Casino Bring Baseless Lawsuit Against Pace-O-Matic and Pennsylvania Small Businesses & Fraternal Clubs Operating Legal Skill Games
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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.
Compliance Updates
Washington’s Lottery Achieves Nation’s Highest Level of Responsible Gambling Certification
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Washington’s Lottery announced that it has achieved the highest level of responsible gambling certification in the country. As acknowledged by the National Council on Problem Gambling (NCPG) and the North American Association of State and Provincial Lotteries (NASPL), Washington’s Lottery officially was certified for “Responsible Gambling Verification Best Practices at the Sustaining Level” in December 2024, the culmination of a process that began with certification at the Planning Level in 2019 and Implementation Level in 2021.
Washington’s Lottery is only the third state lottery in addition to Virginia and Ohio to achieve this milestone. NCPG and NASPL also recognize nine other state lotteries that have achieved a similar certification through the World Lottery Association.
“I can’t begin to express how proud I am of the work our team has done to achieve this important standard. We have a unique obligation as a state agency that sells a gambling product and need to balance the goal of raising money for important state initiatives like education with the need to acknowledge and assist the small percentage of players who may experience gambling-related distress. We take that work very seriously and weave it into all aspects of our jobs,” Kristi Weeks, Director of Legal Services for Washington’s Lottery, said.
To receive the Sustaining Level certification, Washington’s Lottery was evaluated by a team of four independent experts, who reviewed the lottery’s efforts in eight key categories related to responsible gambling: planning, employee training, retailer training, public education and awareness, product oversight, research, advertising, and resources.
“The key to our success has been the integration of responsible gambling initiatives into each and every employee’s position rather than centralizing it into only one or a few positions,” Weeks added.
Compliance Updates
IBIA establishes innovative Payment Provider Forum to protect the integrity of the sports betting market in Brazil from financial fraud
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Six payment providers have signed a Declaration of Commitment and Participation
In a pioneering move to bolster the integrity of Brazil’s newly regulated and rapidly expanding sports betting market, the International Betting Integrity Association (IBIA) today launched a dedicated Payment Provider Forum with the explicit goal of protecting the market from financial fraud related to competition manipulation. The project has launched with six prominent payment providers already signed up to a Declaration of Commitment and Participation: Bazk, Z.ro Bank, OneKey Payments, OKTO, VPag and Pay4Fun.
With IBIA’s members forecast to generate over 70% of remote gross gambling revenue in Brazil, IBIA will play a key role in protecting the integrity of the sports betting market. Payment providers and other related financial services can also play a crucial role in ensuring the integrity of sports betting. The IBIA Payment Provider Forum has therefore been established to foster collaborative activities that contribute to a robust, secure and responsible gambling market in Brazil.
Regulatory and other institutions linked to financial payments and competition manipulation will be invited to join Forum meetings and engage in the development and implementation of preventative actions against financial fraud.
The Forum will also benefit from IBIA’s extensive knowledge of sports betting integrity issues and trends, obtained from its global integrity monitoring and data intelligence network. That includes many of the world’s largest regulated betting operators, active across six continents, and partnerships with leading sports bodies and gambling regulatory authorities. It will also leverage IBIA’s expertise in establishing industry standards, such as its Data Standards Kitemark.
Khalid Ali, CEO at IBIA, said: “Cooperation between financial services, regulatory authorities and betting operators is essential to address the challenges from financial fraud and to maximise the potential of the sector in Brazil. IBIA is therefore delighted that these major payment institutions have agreed to explore collaborative activities to protect the market. Working together, we can create a sustainable and thriving sports betting market in Brazil that benefits all stakeholders. Cross-sector partnership working is a central pillar of IBIA’s global activity, and the association will be assessing the potential benefits of replicating this group in a wider international setting.”
To that end, the Declaration’s signatories have committed to:
- Collaborate in the development of standards and best practices for payment processing.
- Engage with regulatory bodies to defend a robust, fair and effective regulatory framework.
- Promote responsible gambling and consumer, market and sporting event protection.
- Share knowledge and expertise to innovate and improve the payments ecosystem.
- Maintain the highest standards of ethical conduct and compliance with regulations.
The first meeting of the Forum will take place during SBC Rio.
Compliance Updates
Aristocrat Interactive Secures Approval for OASIS Rollout in Washington
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Aristocrat Interactive, the rebranded online Real Money Gaming (RMG) division of Aristocrat, has received certification from the Washington State Gambling Commission to roll out its OASIS system to Class III operators across the State. OASIS is a comprehensive casino management system designed to offer a superior experience for land and sea-based operators.
Through this new jurisdiction approval, OASIS is now available to all 29 federally recognized tribal casinos in the state with a Class III Gaming Compact. This approval builds on OASIS’ existing authorization for Class II gaming in Washington, as BJ’s Bingo & Gaming in Fife, WA has used Aristocrat Interactive’s OASIS system for many years.
“We are thrilled that our OASIS system has been licensed by the Washington State Gambling Commission, and we look forward to working with more Casinos as we expand our footprint across the state. We strive to provide our casino partners with innovative solutions, helping them stand apart from their competition,” Kristen Jones, VP Sales of Aristocrat Interactive Gaming Systems, said.
With 360 partners across North America, Aristocrat Interactive Gaming Systems’ product suite has proven to be a key addition to casinos looking to enhance their operational capabilities. Quinault Beach Resort will be the first operator to incorporate the OASIS system through this new approval.
“We look forward to being the first-Class III casino in Washington to utilize the OASIS system across our casino floor. It is a cutting-edge solution that we are confident will lead to increased efficiencies across our operations,” Mark Palmer, GM at Quinault Beach Resort, said.
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