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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.

 

Compliance Updates

Elys BMG Group Announces Approval for The Ugly Mug Sportsbook in Washington, DC.

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Elys BMG Group announced that The Ugly Mug in Washington D.C. has been granted provisional approval from the District of Columbia Office of Lottery and Gaming Regulation and Oversight Division (DCOLG) to open its sportsbook at 723 8th St. SE. As the fourth privately owned sportsbook venue in the District powered by Elys’ innovative Gameboard betting technology, The Ugly Mug stands as a testament to Elys’ commitment to bringing cutting-edge solutions to local businesses and sports enthusiasts.

The grand opening for The Ugly Mug sportsbook is anticipated to occur during the week of April 27th. Elys will unveil the grand opening festivities, promotions, and events as the date draws closer.

With easy access to sports wagering and a classic American menu in a relaxed setting, The Ugly Mug sportsbook is set to become a premier destination in the Navy Yard region of Washington D.C. and is another step forward for Elys becoming the leading betting technology provider for neighborhood sportsbooks in the US.

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Compliance Updates

eCOGRA Authorized to Offer Certification Services in Brazil

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eCOGRA, the Internationally renowned Independent Testing Laboratory, has been officially authorized by the Secretaria De PrĂŞmios e Apostas (SPA) to operate as a certifying entity for betting systems, live gaming studios, and online games in Brazil. This announcement marks a significant milestone as eCOGRA continues to extend its international offering of iGaming testing, inspection, and certification (TIC) services in regulated markets across the globe.

The announcement comes two months to the day after eCOGRA received approval to operate as a Certification Laboratory in Peru. The organization now operates in 39 online gambling jurisdictions, including Buenos Aires City and Province, Peru, Mendoza, Colombia, and Brazil in South America.

Since its establishment in 2003, eCOGRA has been at the forefront of online gambling certification, providing assurance on fairness and safety to players while offering the highest standards in TIC services to industry operators and software providers seeking to comply with regulatory requirements. The approval to operate in Brazil reflects both the trust eCOGRA has built in the international iGaming community and the quality of its certification services.

Bradley Khoury, Chief Technical Officer of eCOGRA, said: “We are thrilled to bring over two decades of expertise in online gambling certification to the vibrant market of Brazil. This approval from the Secretaria De Prêmios e Apostas (SPA) of the Brazilian Ministry of Finance is not only a testament to our unwavering commitment to the highest standards of competence and quality but also marks an exciting new chapter for eCOGRA. We look forward to working closely with Brazilian operators and interested parties to ensure a safe and fair gaming environment for all players.”

The new Brazilian regulatory framework aims to effectively safeguard player interests and enhance the integrity of online gambling operations within the country.

“Brazil offers a dynamic and rapidly growing market, and we are excited to contribute to its development. Our goal is to ensure that Brazilian players have access to certified iGaming experiences, akin to what has successfully been implemented in other highly regulated jurisdictions,” Khoury added.

Operators and software developers offering in the federal Brazilian jurisdiction seeking to comply with the laws and regulations by undergoing testing, inspection, and certification can now turn to eCOGRA for their renowned services, assured of their commitment to quality, impartiality, and fairness.

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Compliance Updates

IGT and Acres to Resolve All Pending Litigation

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International Game Technology (IGT) and Acres 4.0, Acres Manufacturing Company, and John Acres (Acres) announced that effective April 12, 2024, they have reached an agreement to resolve all legal disputes between the two companies. Terms of the settlement have not been announced.

The resolution was reached in the US District Court of Nevada, directed to US patents that pertain to facilitating use of a financial transaction device in a cashless wagering system in a gaming system, and Nevada State Court directed to a breach of contract claims.

“IGT is pleased to reach a mutual agreement with Acres that resolves all disputes between us. This allows us to dedicate our collective resources where they are better served, driving continued innovation in the exciting and evolving cashless gaming space,” said Nick Khin, IGT COO Gaming.

“We are thrilled to put this matter behind us and work cooperatively with IGT to build exciting new gambling experiences that can increase both player enjoyment and casino profits,” John Acres, CEO of Acres, said.

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