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
New Bill in California Could End Online Sweepstakes Gaming

California State Assemblymember Avelino Valencia (D-Anaheim) has introduced Assembly Bill (AB) 831 to protect Californians from unregulated online gambling by prohibiting online sweepstakes games that use a âdual currencyâ model to mimic casino-style wagering.
âSweepstakesâ platforms sell virtual coins that are used to play casino-style games and can be redeemed for cash or prizes, essentially operating as unlicensed gambling businesses. By exploiting âNo Purchase Necessaryâ disclaimers, they sidestep Californiaâs regulatory framework and evade the stateâs voter-approved proposition related to Tribal-State gaming. Many of these âsweepstakesâ operators are based offshore and function without proper oversight, avoiding requirements like consumer protections, responsible gaming safeguards, background checks, and tax compliance.
âWe cannot look the other way while these platforms exploit legal grey areas. These operations undermine the voter-approved framework that affirms Tribal governmentsâ sovereign right to conduct gaming in California. AB 831 strengthens that framework and ensures gaming in California remains fair and accountable,â said Assemblymember Avelino Valencia.
AB 831 fortifies existing sweepstakes laws and clarifies the illegality of internet-based sweepstakes that use the dual currency model. It reinforces the shared responsibility between the State, licensed operators, and Native Nations to keep gaming safe, transparent, and accountable. AB 831 is co-sponsored by the Yuhaaviatam of San Manuel Nation, the California Nations Indian Gaming Association (CNIGA), and the Tribal Alliance of Sovereign Indian Nations (TASIN), reflecting strong support from across Indian Country.
âFor over 25 years, Tribal governments like Yuhaaviatam of San Manuel Nation, have upheld the will of California voters by operating gaming with integrity. That commitment has allowed us to reinvest in our communities, boost local economies, and support essential public services on reservations and in partnerships across the state. Illegal online gaming now threatens this foundationâcompromising voter-approved law and putting Californians at risk,â said Yuhaaviatam Tribal Council of San Manuel Chairwoman Lynn Valbuena.
âWe support this legislation that will close dangerous loopholes and strengthen the integrity of Californiaâs gaming system. We remain committed to defending a proven framework that protects the sovereignty of Tribal Nations and delivers real and lasting benefits to all Californians. Together, Tribal governments and the State of California will continue to address and take decisive action against illegal internet gaming in all its forms,â said Yuhaaviatam Tribal Council of San Manuel Vice Chairman Johnny Hernandez, Jr.
âTribal government gaming contributes nearly $25 billion to Californiaâs economy, sustains over 112,000 jobs, and funds critical community programs. Unregulated online sweepstakes threaten this voter-approved system by imitating casino gaming without oversight, accountability, or community investment. These illegal platforms erase the benefits of regulated gaming while exposing consumers to serious risks,â said CNIGA Chairman James Siva.
AB 831 is pending a hearing in the Senate.
Compliance Updates
New Initiative from DI Council Aims to Enable Betting on Professional Sports

The Division I Council introduced a proposal that, if adopted in October, would change sports betting rules to permit student-athletes and staff members to bet on professional sports and refocus the Association’s enforcement efforts on college sports betting and behaviors that directly impact game integrity. If adopted, the change will be implemented only if Divisions II and III also vote to allow betting on pro sports.
The council’s introduction of the proposal, which comes after a directive from the Division I Board of Directors in April that the council adopt changes to sports betting rules, is not an endorsement of sports betting behaviors, especially for college athletes. The NCAA’s prohibition against betting on college sports would remain in place, as would the prohibitions against sharing information about college events with bettors. The NCAA also would continue to maintain its prohibition for NCAA championships  against advertising and sponsorships associated with betting.
“NCAA rules prohibiting sports betting at all levels were written and adopted at a time when sports gambling was largely illegal nationwide,” said Josh Whitman, athletics director at Illinois and chair of the council. “As betting on sports has become more widely accepted across the country, Division I members have determined that further discussion of these sports betting rules is warranted, particularly as it relates to the potential distinctions between betting on professional versus collegiate sports. Throughout our discussions, the council has remained focused on student-athlete wellness and educating student-athletes about the risks and potentially harmful impacts of betting.”
Current NCAA rules do not allow student-athletes or institutional staff to engage in sports betting at any level (professional, college or amateur) for any sports that have NCAA championships, and NCAA members have continually maintained that any betting by a student-athlete on his or her own team or own sport in college should continue to result in a permanent loss of any remaining collegiate eligibility. However, in 2023, Division I changed the reinstatement guidelines for student-athletes who participate in sports betting on professional sports to focus on harm reduction for problematic betting behaviors.
“Deregulating professional sports betting may provide schools an additional opportunity to implement harm-reduction strategies, which can be more effective and have long-term benefits not seen with abstinence-only approaches. Harm-reduction strategies include education, stigma reduction and acknowledging actual behaviors,” said Dr. Deena Casiero, NCAA chief medical officer. “By meeting student-athletes where they are, schools may be more effective at preventing, identifying and supporting student-athletes with problematic gambling behaviors. Regardless of the change, schools are encouraged to use the many sports betting resources already available.”
The recently released Harm Reduction Considerations for Gambling & Sports Betting in Collegiate Sports references available sports betting resources, including the NCAA Mental Health Best Practices. Additionally, more than 100,000 student-athletes, coaches and administrators have been reached through the NCAA’s education efforts with EPIC Global Solutions, and the NCAA has launched an e-learning module to educate student-athletes on problem gambling harms and the integrity risks associated with sports betting.
Several sports betting-related violations by staff members at NCAA schools have been resolved through the infractions process in recent years, and the enforcement staff is working on issuing Notices of Allegations in several ongoing cases that involve allegations of betting on professional and college sports by student-athletes and/or athletics department staff members at a handful of NCAA schools.
The proposed rule change would not be retroactive. If it is adopted, it would apply only to sports betting activities that occur after the effective date of the proposal.
“The enforcement staff’s sports betting-related caseload has significantly increased in recent years, and our staff â including our new sports betting integrity unit â has been effective in detecting and pursuing violations,” said Jon Duncan, NCAA vice president of enforcement.
The Association prioritizes competition integrity, which is vital to college sports. The NCAA uses a layered strategy to respond responsibly to the rise in sports betting across the United States by monitoring over 22,000 contests per year, advocating for limits on  prop bets that pose heightened risks, reducing the potential for student-athlete abuse by aggrieved bettors, and creating greater transparency to assist with the timely investigation and resolution of integrity-related issues.
This layered approach includes the most recent agreement extension with Genius Sports to establish unprecedented betting restrictions on high-risk proposition bets. Sportsbooks licensing NCAA championship data must cooperate fully with NCAA investigations, including providing access to account data, financial history and geolocation records. This will allow the NCAA to work with the sportsbooks to gather detailed account information when harassers are identified to prevent repeat offenders from continuing to place bets across platforms, increasing safeguards to protect student-athlete mental health and well-being.
Compliance Updates
Honolulu Mayor Signs New Laws Targeting Illegal Game Rooms

Last Thursday, Honolulu Mayor Rick Blangiardi signed into law three bills â Bills 11, 12 and 13 â each of which are related to illegal gambling in the county.
The first, Bill 11, sets requirements on âelectronic amusement devicesâ in public establishments. Operators of the establishment are now required to obtain a permit from the Honolulu Police Chief to use such a device on the premises, or else forfeit the device.
The Police Chief could deny a permit application if the proposed location of the device âwould be reasonably likely to result in an increase in criminal activity, vandalism, litter, noise or traffic congestion,â according to the bill. The bill also requires anyone with a permit to allow a police officer to enter the premises and inspect the device and other records.
Meanwhile, Bill 12 allows the Honolulu Department of Planning and Permitting to deny permit applications for properties that have been cited for a gambling-related public nuisance within the previous two years.
And Bill 13 allows landlords to request a police escort while inspecting a private property for nuisance claims, with the accompanying officers authorized to document law violations or unsafe conditions, and to warn people not authorized to be there to leave.
In tandem, the three bills are meant to clamp down on illicit gambling rooms, which often become hotspots for associated complaints of criminal behavior.
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