Compliance Updates
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 veteransâ 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.
âIt is undeniable that BLCE officials coordinated with a for-profit company to harass POM and organizations and businesses where Pennsylvania Skill games are played,â said Mike Barley, spokesman for Pace-O-Matic. âThis is a clear betrayal of the public trust by a law enforcement agency.â
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 competitorsâ 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 locationâs liquor license.
- BLCE  â 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 POMâs 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 prosecutorsâ 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 BLCEâs âconduct 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 deviceâ following the 2014 court decision.
Compliance Updates
Massachusetts Gaming Commission Launches Official Seal of Approval
The Massachusetts Gaming Commission (MGC) has recently developed and adopted an official seal of approval, which all licensed sports betting operators in the state are now required to display on their digital platforms. The introduction of this seal represents a significant step in the MGCâs ongoing efforts to promote responsible and regulated gaming within the Commonwealth.
The seal is intended to serve as a clear signal to consumers that they are accessing a sports betting platform licensed and regulated by the MGC. By prominently featuring this seal, customers can easily distinguish between legal, licensed operators and unsafe, illegal alternatives.
âThe MGC has spent considerable efforts ensuring that the operators licensed in the Commonwealth share our values and are committed to consumer protections and responsible gaming. Massachusetts residents who choose to gamble on sports deserve to know their data, personal and financial information are protected, and only the legal marketplace offers those protections. By locating this seal, users will be able to easily identify a legal sportsbook from an illegal operator,â said Commissioner Eileen OâBrien.
Offshore and unlicensed sports betting sites have been accessible to patrons across the US for years. However, with the legalization of sports wagering in Massachusetts, these offshore operators may attempt to present themselves as legitimate. Yet, they are not licensed by any state jurisdiction and do not comply with the same regulations and consumer protection standards as the legal market.
The risks of using these illegal platforms extend beyond potential data breaches or financial losses. Unlicensed operators may refuse to honor winning bets, leaving consumers with little to no recourse. Illegal gambling activities are also often tied to other serious crimes. The Massachusetts Attorney Generalâs Office has issued cease-and-desist orders to several major illicit operators. It will continue to monitor and take action against such unlawful activities in coordination with the MGC. The Commission would urge anyone looking for more information on illegal platforms to visit the website of the American Gaming Association.
This newly adopted seal serves as a visual reminder of the regulations in Massachusettsâs legal sports betting market. It enhances consumer protection and builds trust with members of the public who choose to engage in sports betting. By identifying the official MGC seal, customers can have peace of mind knowing they are accessing a fully licensed platform compliant with the Commonwealthâs laws and regulations.
Compliance Updates
Internet Vikings Provides VMware License to Alpha Innovations
Internet Vikings, a licensed in-state hosting provider for iGaming and online sports betting, announces their partnership with Alpha Innovations, a provider of data center services. Under the agreement Internet Vikings will supply Alpha Innovations with VMware licensing through its VMware White Label solution.
Alpha Innovations, known for being a leading Managed Services Provider  including cloud computing, data storage, and backup, has chosen to partner with Internet Vikings, a member of the Broadcom Premier Partnership program. This membership highlights Internet Vikingsâ capabilities in supporting large-scale and highly regulated environments.
Internet Vikings will provide Alpha Innovations with the essential VMware license, an asset for their cloud offerings. This addition enhances Alpha Innovationsâ capability to set up and maintain regulated and compliant cloud environments while upholding their high standards.
“The added value of our licensing solutions and support services aligns perfectly with Alpha Innovations’ needs,” said Rickard Vikström, CEO and Founder at Internet Vikings.
Douglas Tate, CEO at Alpha Innovations added, âAs a leading Managed Service Provider (MSP), Alpha Innovations is always looking for ways to improve our service offerings. Our partnership with Internet Vikings is a win-win for our clients. By leveraging Internet Vikings’ VMware licensing solutions, we can offer our clients more flexible, scalable, and secure cloud solutions. This will ultimately help our clients achieve their business goals more efficiently and effectively.”
Both companies are committed to maintaining a transparent and mutually beneficial relationship, demonstrating how data centers and hosting providers can collaborate to meet the licensing needs of the industry.
Canada
ComeOn Group adds sportsbook to its offering in Ontario
ComeOn Group announced a significant milestone in its sportsbook expansion journey with the addition of sportsbook to their offering in Ontario following the successful acquisition of the required permits. This addition represents a strategic advancement in the Groups sportsbook growth trajectory where they are set to double its sportsbook business in the coming years.
ComeOn Group is one of 51 active operators in Ontario. The Ontario market has experienced robust growth since its launch, reaching C$6.7 billion in revenue in 2023.* By 2029, the market is forecasted to grow by a total of 29%, with 2024 expected to close with a 20% increase.
ComeOn keeps investing in its sportsbook business acceleration that is powered by its proprietary sportsbook platform and in-house risk management and trading team. As a multi product vertical operator, ComeOn is striving to give its customer base a safe and exciting entertainment destination and this approach is now expanded to their Ontario audience.
Juergen Reutter, Chief Executive Officer at ComeOn Group, said: âWe are very excited about the opportunities this new milestone opens up for us. As a casino-led operator it represents a key part of our sportsbook strategy to double our business in the coming years. Like in any of our other markets, we are striving for a differentiated sportsbook entertainment experience that is powered by our in-house technology. Our goal is to deliver top-tier entertainment to our players while fostering safe and innovative gaming experiences.â
*Source â H2GC H2 Ontario Data 25.10.2024 (excl. Lottery)
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