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Compliance Updates

Pace-O-Matic Announces Major Fraud Suit Against Prominent Pennsylvania Law Firm

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Pace-O-Matic Announces Major Fraud Suit Against Prominent Pennsylvania Law Firm

 

Pace-O-Matic (POM), a Georgia-based gaming company that does significant business throughout Pennsylvania, announced a major fraud claim against one of Pennsylvania’s most prestigious law firms.

The lawsuit alleges that Eckert Seamans Cherin & Mellott, LLC, a Pennsylvania-based law firm deceived its client, POM, by taking millions of dollars to represent the gaming company, while at the same time representing a Pennsylvania casino that opposed POM’s operations in the Commonwealth and launched lawsuits against POM. When confronted with the conflict of interest, Eckert first denied the conflict, then swore to a Federal District Court they would not engage in a conflict, then continued to work surreptitiously against POM and POM’s interests.

“Make no mistake about it, Eckert engaged in an egregious conflict of interest where they unethically pitted one client against another,” said Michael Barley, POM’s Chief Public Affairs Officer. “This case and record are clear, and we are hopeful the courts will right the damage that Eckert and its agents have inflicted upon POM, its customers, and countless Pennsylvanians.”

Eckert is a major law firm that has more than 300 lawyers across a network of 15 offices, including Philadelphia, Harrisburg, Pittsburgh, Boston, Washington, DC, and Richmond, VA.

The lawsuit contends that Eckert “took up arms” against POM on behalf of the Philadelphia-based Parx Casino; that Eckert “actively participated in and covertly manipulated litigation” in Pennsylvania Commonwealth Court adverse to POM’s interests; and that Eckert participated in a campaign intended to “destroy POM’s business by attempting to convince elected and appointed public officials that POM’s games are gambling devices that should be seized and outlawed.”  In particular, Eckert used its influence to improperly target the Pennsylvania Gaming Control Board.

When confronted by POM’s allegation that Eckert was double-dealing and had breached its professional duties of loyalty and confidentiality, Eckert denied the claim, while seeking to shield the law firm’s emails with the Parx Casino which would, if made public, reveal that numerous lawyers at Eckert, led by Mark Stewart, co-chair of Eckert’s gaming practice group, were indeed simultaneously taking money from and representing the Parx Casino.

Parx Casino calls itself “the #1 casino in Pennsylvania” and is owned and operated by Greenwood Racing Inc.

Eckert, working at the behest of Parx Casino and its consultants, sought to block Pace-O-Matic from doing business in Pennsylvania.

The suit also alleges that Eckert “violated their most basic fiduciary duties and concealed and misrepresented material facts to POM’s great detriment.  As a result, POM is entitled to appropriate damages.

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In November 2021, US Magistrate Judge Joseph Saporito, Jr. found that Eckert acted in “bad faith” by seeking to withhold emails that demonstrated Eckert was representing both sides.

Eckert, Saporito ruled, “actively and clandestinely managed and participated in the representation of Parx in the Commonwealth Court litigation against its other client, POM. Moreover, based on our in camera review of the purportedly privileged documents, it did so with full knowledge that the conflict asserted by POM precluded its active and continuing representation of Parx in the Commonwealth Court litigation.”

Saporito continued, “in light of the clear and obviously intentional subterfuge demonstrated in the purportedly privileged documents, we have no difficulty concluding that these documents evidence an intent by Stewart and Eckert to play fast and loose with the courts”.

Eckert appealed Jude Saporito’s ruling, which required Eckert to turn over to POM many internal emails. On July 5, 2022, Federal Judge Jennifer P. Wilson ruled for POM, declaring, “in making inconsistent representations to the court, Eckert has attempted to obstruct the discovery process as to the central issue in this case: whether Eckert breached its fiduciary duty to POM by representing Parx, a party with adverse interests, at the same time that it represented POM.”

POM is a leading developer of legally compliant games of skill in the United States. Its games are played in thousands of small restaurants and bars, along with many social halls such as American Legion and Veterans of Foreign War posts.  Our games generated millions of dollars in revenue for businesses and clubs in Pennsylvania last year and its games can be found in thousands of businesses, mostly small mom and pop shops, along with many social halls.

Compliance Updates

MC Games Announces Ombudsman Channel for User Questions

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MC Games has officially announced its exclusive ombudsman channel. The space arises to listen carefully to the opinions, suggestions, doubts and possible complaints of the platform’s users, ensuring direct dialogue and continuous improvement of the services offered.

Thinking about every detail so as not to leave any player with an unsolved problem, MC Games offers several steps to help players: First, the bettor finds a team with humanized support, 24 hours a day, in the chat. If the problem is still not resolved, the gaming platform offers the Ombudsman Channel to answer major questions, which are beyond the basic guidelines on how to withdraw, make a deposit or other such issues.

In a simple and intuitive way, the user is faced with the “Report on the Web” button on the site, directing him to the Customer Service Center. There, he will be able to answer questions, with the requested information, ensuring that his service happens quickly, safely, and efficiently.

The same space also works for those who want to share compliments, report the browsing experience on the platform and even send suggestions, so that the MC Games team can increasingly improve the experience of its audience, offering the most innovative in the market.

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Compliance Updates

Chicago City Council Members Pushing to Legalize Video Gambling

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Chicago City Council members are reviving plans to legalize video gambling in the city, introducing two ordinances that could bring hundreds of terminals to O’Hare and Midway airports and allow machines citywide for the first time.

One ordinance, introduced by Alderman Gilbert Villegas (36th), targets the city’s airports, where he sees both political feasibility and high revenue potential.

“The General Assembly has provided this opportunity through the casino bill. Yet, we’re not taking advantage of capturing dollars from one of the busiest airports in the country,” Villegas said.

“People are there, in some cases, one or two hours before. If their flight is delayed or they’re making a connection and there is a delay, there’s an opportunity to capture an audience that may not even be going to the city.”

Villegas’ proposal includes a $10,000 license fee per location, plus $500 per terminal. A separate terminal license would cost $1000, with an additional $500 per unit. If 400 machines each generated $800 daily, Villegas estimates annual revenue could reach $116.8 million, with the city taking a share through licensing and taxes.

Alderman Anthony Beale (9th) is pushing for a broader citywide expansion. His ordinance would legalize video gambling throughout Chicago, including in neighborhood bars and restaurants.

“We need to do it citywide and at the airports. We need the revenue and this administration has not shown a willingness to find new revenue that’s not gonna hit the taxpayers in every household,” Beale said.

Beale’s ordinance proposes a $500 license fee per location and a $1000-per-terminal charge for both the site and the machine itself. He has criticized the administration for dismissing the potential benefits, arguing that the current tax formula could be renegotiated with state lawmakers.

“That’s because they haven’t shown the willingness to go down to Springfield and change the formula. I’m hoping that submitting these ordinances will finally convince them to send a team down there,” he said.

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Prime Skill Games Inc. Official Response to AGCO Press Release

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Prime Skill Games Inc. Official Response to AGCO Press Release

 

As CEO of Prime Skill Games Inc., I feel compelled to address recent comments made by the Alcohol and Gaming Commission of Ontario regarding so-called unapproved gambling machines in convenience stores across the province.

Let me be perfectly clear

Our machines are not gambling devices. They are entirely skill-based, fully compliant with the law, and built on the fundamental idea that players are in control. The outcome of every session is determined solely by the player’s ability, not by random chance.

Prime Skill Games is proud to be the only true skill game operating in Ontario today.

We categorically reject any suggestion that our products fall under the definition of unregulated gambling. Such statements are inaccurate, misleading, and fail to recognize the critical distinction between games of skill and games of chance.

We stand firmly behind the legality of our machines and the integrity of our operations. We will demonstrate this through every available means, whether through legal documentation, expert analysis, or, if necessary, before the courts. We are prepared and unafraid to defend the truth.

To our players, partners, and business community, we want to reassure you that our mission has not changed. We are committed to offering a responsible, transparent, and innovative entertainment experience. We will not be intimidated by broad and baseless accusations, and we will continue to move forward with strength and clarity.

 

Sincerely

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Matt Zamroźniak

Chief Executive Officer

Prime Skill Games Inc.

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