Compliance Updates
Pace-O-Matic Announces Major Fraud Suit Against Prominent Pennsylvania Law Firm
![Pace-O-Matic Announces Major Fraud Suit Against Prominent Pennsylvania Law Firm](https://gamingamericas.com/wp-content/uploads/2021/11/POM-VA.jpg)
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.
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
IGSA Welcomes Sharp Vision as Silver Member
![](https://gamingamericas.com/wp-content/uploads/2024/07/7-6.jpg)
The International Gaming Standards Association (IGSA) has welcomed Sharp Vision as a new Silver member. Sharp Vision is a leading provider of regulatory turnkey solutions for gaming authorities.
“We are delighted to be a part of IGSA and we look forward to contributing to the advancement of best practices among regulators in the fast-growing gaming industry,” Damien Raymond, COO of Sharp Vision, said.
“IGSA is very excited to welcome Sharp Vision to our membership. We believe that IGSA Standards can enhance Sharp Vision’s products supporting regulatory authority oversight. We look forward to their participation in IGSA committees,” Mark Pace, President of IGSA, said.
Compliance Updates
PGCB Places Seven Individuals on Involuntary Interactive Exclusion List for Online Gaming Fraud
![](https://gamingamericas.com/wp-content/uploads/2024/07/4-7.jpg)
The Pennsylvania Gaming Control Board (PGCB) on Wednesday approved recommendations by its Office of Enforcement Counsel (OEC) for the placement of seven individuals on the iGaming Involuntary Exclusion List.
The online transactions that these seven individuals engaged in, totaling $27,168, were investigated by the Board’s Bureau of Investigations and Enforcement (BIE) and found to be fraudulent in two major respects:
- an individual used a fraudulent scheme to obtain an online account or accounts in another person’s name and identifiers, placed funds into these accounts utilizing other persons’ payment methods, and without engaging in any gaming activity, managed to have funds withdrawn from the fraudulently-established account or accounts directly into their own bank account; or,
- requested and received a refund for a disputed credit or debit card transaction from a card issuer even though that refund was fraudulent.
The specific fraudulent conduct of each individual is further described below:
- Created two separate online sports wagering accounts using the personal identification and credit cards of other individuals, and withdrew $300;
- Created 13 separate online casino-type games accounts using the personal identification and credit cards of other individuals, and withdrew $545;
- Created six separate online sports wagering accounts using the personal identification and credit cards of other individuals, and withdrew $1000;
- Created four separate online sports wagering accounts using the personal identification and credit cards of other individuals, and withdrew $1123;
- Created two separate online sports wagering accounts using the personal identification and credit cards of other individuals, and withdrew $1500;
- Illegally requested and received six chargebacks to a credit card associated with an online casino-type games account totaling $10,100;
- Created one online sports wagering account using the personal identification and credit card of another individual, and withdrew $12,600.
The Board’s actions in these matters stem from its commitment to keep individuals who have committed fraud from gaming online in Pennsylvania. The additions made bring to 37 the total number of individuals who are currently on the iGaming Involuntary Exclusion List.
The Board also placed four other individuals on its Casino Involuntary Exclusion List. The number of individuals currently on that list totals 1197 and stems from various reasons including theft, cheating, child endangerment disorderly conduct, and using counterfeit currency.
Compliance Updates
PandaScore secures their first US betting license, by entering Colorado
![](https://gamingamericas.com/wp-content/uploads/2024/07/PandaScore-secures-their-first-US-betting-license-by-entering-Colorado_20240723_130839_0000.png)
After a meticulous and measured research process in consultation with the needs of its clients, PandaScore has acquired a license to operate in the US state of Colorado.
Through the license, PandaScore has signalled its intentions in the US market: forging a supplier-led path to esports betting success in the US. Existing PandaScore clients can now enter the Colorado market, scale up their esports offering and build their future audience in the state’s esports-friendly regulatory framework.
Future clients can also be confident that working with PandaScore supports their growth strategy in the lucrative US market. The state’s esports-friendly regulatory framework serves as a solid foundation to cultivate an esports audience and take advantage of PandaScore’s innovative, revenue-driving products such as BetBuilder, player props and microbetting.
PandaScore selected Colorado as its first point of entry into US licensing thanks to the state’s large catalogue of esports titles and competitions that are eligible for regular betting, and the wide range of markets that can be offered. Additionally, the state’s flexible and innovation-friendly licensing regime makes it a strong market for PandaScore and its clients.
Securing the license also serves as proof of concept for the French esports supplier, PandaScore Legal Counsel Alexis Brunet noted that “securing the Colorado license is a strong signal of our intentions in the US and are serious about its potential. Esports in the United States is a fast-evolving regulatory environment, but it’s only going in one direction: expansion. We intend to provide our best-in-class products and services to our customers no matter where they are, and service one of the largest markets in the world.”
For PandaScore CEO Flavien Guillocheau, entry into Colorado in the US market was the natural next step in the company’s client-first, service-oriented approach: “For esports to succeed in the US, suppliers must lead from the front. Suppliers need to address the uncertainty around regulation which has held back operator investment and thus growth of the vertical.
“We’ve proven we know the market, get a license efficiently and do it in a way that puts operators first. We’re confident that if our clients are seeking entry into a given market, we can be completely straight with them, show them the viable pathway to success, and create the foundation and access they need to fully harness the potential of esports in one of its biggest consumer markets.”
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