Compliance Updates
Pace-O-Matic Secures Another Legal Victory in Pennsylvania
Pace-O-Matic announced the company won a return of property motion in Dauphin County. This property – gaming machines, related equipment, and cash – was wrongfully seized during raids conducted by the Pennsylvania Bureau of Liquor Control and Enforcement (BLCE) in 2019.
“First and foremost, this ruling again reaffirms our status as legal games of skill. This is another tremendous victory for Pennsylvania Skill games, powered by Pace-O-Matic, and our Pennsylvania small business and fraternal partners,” said Pace-O-Matic spokesman Mike Barley.
The ruling also castigates the Commonwealth and BLCE for their biased conduct in the matter.
Dauphin County Common Pleas Judge Andrew H. Dowling wrote: “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.
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.”
Barley said: “We applaud the most recent court’s decision, especially for highlighting the extreme level of bias shown by the Commonwealth against a legal product. The behavior of the BLCE agents and prosecutors, in this case, has been egregious, and we are deeply concerned about the motivation to disregard, bend and violate the law and our constitutional rights in a coordinated effort to harm our company and the small businesses, clubs, fire halls and veterans groups that benefit from skill game revenue and support.
“Every time the legality of our skill games has been called into question, the legal status of our games has been upheld by the judiciary. Pace-O-Matic stands out among our competitors as the active driving force seeking additional regulation and taxation. We remain steadfast in our commitment to working with the state General Assembly and asking for legislation providing additional regulation and increased tax money for the state.”
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, both of which are achieving record profits year after year.
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’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.
Canada
AGCO issues $110,000 in penalties to BetMGM Canada for offering cash to induce new gambling customers
The Alcohol and Gaming Commission of Ontario (AGCO) has served BetMGM Canada Inc. with an Order of Monetary Penalty (OMP) of $110,000 for violations of the Registrar’s Standards for Internet Gaming.
In two separate incidents in 2024, BetMGM engaged marketing companies who offered cash to members of the public in return for opening new BetMGM accounts. The marketing activities occurred in public forums, such as a major national trade conference. Under AGCO’s Standards, operators are responsible for the conduct of their third-party suppliers who are contracted to support the operator’s Ontario gaming business, and must require their third-parties to meet Ontario laws, regulations and standards (Standard 1.19).
Ontario is one of the first jurisdictions in the world to establish and enforce rules that strictly limit high-risk inducement advertising and marketing in the online gambling industry. Registered iGaming operators are prohibited from offering gambling inducements, bonuses and credits as part of their broad public advertising and marketing activities (Standard 2.05). These Standards exist to protect Ontarians from predatory advertising and promotional marketing practices in order to limit the risk of gambling-related harm.
A registered operator served with an OMP by the AGCO has the right to appeal the Registrar’s decision to the Licence Appeal Tribunal (LAT), which is an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.
QUOTE
“Responsible gambling safeguards and the protection of Ontarians on registered gaming sites is among our key priorities. The AGCO monitors the activities of all registered operators and their third-party suppliers to ensure they are meeting our high standards and we continue to take strong action to ensure they operate within the public interest.”
Dr. Karin Schnarr, Chief Executive Officer and Registrar – AGCO
ADDITIONAL INFORMATION
BetMGM Canada Inc. failed to comply with the Registrar’s Standards for Internet Gaming. Specifically, the licensee failed to comply with the following provisions of the Standards:
- 1.19 Operators are responsible for the actions of third parties with whom they contract for the provision of any aspect of the Operator’s business related to gaming in Ontario and must require the third party to conduct themselves in so far as they carry out activities on behalf of the operator as if they were bound by the same laws, regulations, and standards.
- 2.05 Advertising and marketing materials that communicate gambling inducements, bonuses and credits are prohibited, except on an operator’s gaming site and through direct advertising and marketing, after receiving active player consent.
Contrary to the Standards, BetMGM Canada Inc. and/or their affiliates allegedly engaged in the following activities:
| a) | On or about January 13 and 14, 2024, BetMGM representatives were alleged to have attended the National Franchise Show and were offering $100 in cash to new players for opening a new account and depositing $15. |
| b) | On or about March 11, 2024, BetMGM acknowledged that its marketing affiliate “Above the Street” had engaged in prohibited inducement marketing. The conduct resulted in 377 player sign-ups and $127,180.00 in commissions to “Above the Street”. |
| c) | On or about April 13, 2024, another BetMGM marketing affiliate “Maple Leaf Marketing” engaged in prohibited inducements and marketing to induce on-site activations and acquire new players. The conduct resulted in 94 player sign-ups and about $34,000.00 in commissions paid to “Maple Leaf Marketing”. |
4ThePlayer has officially received game certification for the Brazilian iGaming market, reinforcing its commitment to regulated markets worldwide. This milestone enables the company to bring its acclaimed player-first gaming experiences to a brand-new audience.
Approved by Gaming Associates and eCogra, these certifications allow licensed operators in Brazil, to offer 4ThePlayer’s high-quality, player-centric games through their existing platform integrations with Relax Gaming and Yggdrasil.
Certified game titles include 4 Fantastic Fish, 4K Ultra Gold, and 5 Wild Buffalo as well as their innovative and unique table games 100 Bit Dice and 1000x Busta, all top-performing, player-favorite releases. Moving forward, all 4ThePlayer games will be certified for Brazil from day one.
Beyond its existing portfolio, 4ThePlayer is committed to delivering region-tailored content, leveraging its local team in Brazil to develop engaging, culturally relevant gaming experiences set to launch later this year. The first one of these titles is 4 Fantastic Fish Amazon Adventure, the latest in their player favourite 4 Fantastic series, coming via Yggdrasil in April.
Henry McLean, Co-Founder, Commercial & Marketing Director at 4ThePlayer, expressed his enthusiasm: “We are thrilled to bring our unique, player-centric games to Brazil, a market full of energy and potential. These game certifications are a major milestone, reinforcing our dedication to regulated markets and delivering best-in-class entertainment. We look forward to collaborating with operators and creating unforgettable gaming experiences for Brazilian players.”
With this certification, 4ThePlayer continues its mission of providing exceptional, player-focused gaming worldwide, ensuring its engaging and innovative titles reach new markets and audiences.
SOFTSWISS, a leading iGaming software provider, continues its expansion in LATAM by obtaining certification for the Peruvian market for its Jackpot Aggregator, a comprehensive player engagement solution. This follows the recent certification of the SOFTSWISS Jackpot Aggregator in Brazil.
The certification was achieved through GLI, an accredited testing laboratory, ensuring that the Jackpot Aggregator meets all technical and legal requirements set by Peruvian authorities.
The online casino segment in Peru has seen steady ARPU growth, increasing from 181 dollars in 2017 to a projected 513 dollars by 2028. Similarly, online sports betting has shown consistent growth, with ARPU rising from 319 dollars to 453 dollars over the same period.
The SOFTSWISS Jackpot Aggregator effectively caters to both segments, as it can be seamlessly integrated with sportsbooks and online casinos, even those based on third-party platforms. Also, SOFTSWISS recently announced the launch of the first Network Jackpot for Sportsbooks, a rare and effective engagement tool in the market.
Angelina Stasiuk, Head of Business Line at SOFTSWISS Jackpot Aggregator, commented: “When it comes to player retention and engagement while delivering an exciting entertainment experience, the SOFTSWISS Jackpot Aggregator offers a powerful solution. It allows operators to easily configure and implement a variety of mechanics, from multi-level prizes to branded jackpots. We are excited that these effective tools are now available for the Peruvian market.”
The Jackpot Aggregator can also be seamlessly integrated with the SOFTSWISS Game Aggregator, which is also certified for the Peruvian market.
The SOFTSWISS team will be available to discuss sweepstakes, social casino segments and partnerships at SiGMA Americas in São Paulo, Brazil, from 7 to 10 April.
About SOFTSWISS
SOFTSWISS is an international technology company with over 15 years of experience developing innovative solutions for the iGaming industry. SOFTSWISS holds several gaming licences and provides comprehensive software for managing iGaming projects. The company’s product portfolio includes the Online Casino Platform, the Game Aggregator with over 23,500 casino games, the Affilka Affiliate Platform, the Sportsbook software and the Jackpot Aggregator. In 2013, SOFTSWISS revolutionised the industry by introducing the world’s first Bitcoin-optimised online casino solution. The expert team counts over 2,000 employees.
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