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Compliance Updates

Pace-O-Matic Files Lawsuit Against Pennsylvania Bureau of Liquor Control Enforcement

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Pace-O-Matic Files Lawsuit Against Pennsylvania Bureau of Liquor Control Enforcement

 

Pace-O-Matic, which powers Pennsylvania Skill games, filed a lawsuit in Commonwealth Court against the Pennsylvania Bureau of Liquor Control Enforcement (BLCE), alleging it engaged in coordinated harassment against Pennsylvania Skill operators and location owners where these legal skilled games are played.

The company is seeking to permanently block BLCE from targeting Pace-O-Matic (POM) games along with the veterans’ organizations, fraternal clubs and small businesses where the games are located.

In one of the most damning parts of the complaint, POM alleges that BLCE has been in direct contact with the casino industry as part of a conspiracy to disparage POM and assist casino operatives in slandering POM. As documented in the complaint, a casino public relations operative contacted the Clearfield County District Attorney regarding a skill games seizure there as part of the alleged cooperative effort with BLCE.

“It is undeniable that BLCE officials coordinated with a for-profit company to harass POM and organizations and businesses where Pennsylvania Skill games are played,” said Mike Barley, spokesman for Pace-O-Matic. “This is a clear betrayal of the public trust by a law enforcement agency.”

The complaint alleges the following:

  • Starting in 2018, BLCE began targeted harassment towards POM and its business partners.
  • BLCE targeted only locations with Pennsylvania Skill games with threats and seizures. BLCE leadership, in fact, trained enforcement officers to differentiate Pennsylvania Skill games from competitors’ games, including training the officers on the colors and logos of Pennsylvania Skill. Locations with Pennsylvania Skill games received harsher treatment than locations with other gaming machines.
  • BLCE leadership instructed bureau officers to misstate gaming law or court decisions in an effort to scare locations into removing their skill games. When those efforts failed, officers threatened citations that would lead to a loss of the location’s liquor license.
  • BLCE  – in conjunction with casino public relations personnel —  recruited the Clearfield County district attorney to seize Pennsylvania Skill games. In fact, BLCE has been in contact with lawyers and lobbyists for casinos in a conspiracy to disparage POM and assist casino lobbyists in interfering in POM’s business.
  • Some locations cited for maintaining skill games were contacted by BLCE lawyers, who offered to reduce citation fines in exchange for assistance in building a case against POM and Pennsylvania Skill.
  • BLCE has contacted district attorneys throughout the Commonwealth to enlist prosecutors’ help in seizing Pennsylvania Skill games.

Operators of casinos in Pennsylvania, which are seeing record revenue, have opposed skill games for years, claiming they cut into casino profits. Research by a Villanova University economics professor, however, demonstrates that this is false.

Pennsylvania Skill operates games in locally owned small businesses such as bars, restaurants and convenience stores, along with fraternal clubs and veterans organizations.

Skill games can be won every time if the player uses mental skill and patience, unlike slot machines that are games of pure chance. In 2014, a Common Pleas court determined that Pennsylvania Skill games are legal because of the skill factor.

The complaint states that BLCE’s “conduct is all the more remarkable, and wrongful, because the Bureau has never articulated a factual or legal basis for maintaining that the Skill Game is an illegal gambling device” following the 2014 court decision.

 

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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.

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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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IBIA establishes innovative Payment Provider Forum to protect the integrity of the sports betting market in Brazil from financial fraud

 

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.

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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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