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Compliance Updates

Pennsylvania Skill, Powered by Pace-O-Matic, Ruled a Legal Game of Skill by Another Pennsylvania Court

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Today, Pace-O-Matic announced the company won a return of property motion in York County, Pennsylvania. This property encompassing gaming machines, related equipment and cash, was wrongfully seized during raids conducted by the Pennsylvania Bureau of Liquor Control and Enforcement (BLCE).

“Pace-O-Matic’s Pennsylvania skill games are legal,” said the counsel for Pace-O-Matic, Matthew Haverstick of Kleinbard LLC. “The Commonwealth has wrongfully seized this equipment for years with no credible evidence that they are illegal. Today, the Commonwealth refused to present witnesses or make a case that the games are illegal. This issue as a matter of law is decided and the courts have ruled appropriately and consistently so.”

“Again, another Pennsylvania court has found that Pennsylvania skill games, powered by Pace-O-Matic, are legal games of predominant skill,” the Chief Public Affairs Officer for Pace-O-Matic, Mike Barley, said. “Our Pennsylvania skill game has been ruled a game of predominant skill by multiple courts across the Commonwealth. With the legality of our games upheld repeatedly, we are eager to work with the legislature to pass legislation that will fairly regulate and tax the skill game industry. Pace-O-Matic stands out among our competitors as the active driving force seeking additional regulation and taxation.”

Pennsylvania skill games, powered by Pace-O-Matic, have been ruled games of predominant skill by courts in Beaver, Dauphin, Monroe and York Counties. Additionally, after a review of the law and court decisions, our games have been returned to us in both Clearfield and Delaware Counties. Just last month, we received a favorable ruling in Dauphin County declaring Pennsylvania skill games legal. The Dauphin County Court ruling also castigates the Commonwealth and BLCE for their biased conduct.

“All three of the Commonwealth witnesses opined that the games were predominantly games of chance,” wrote Dauphin County Common Pleas Judge Andrew H Dowling. “However, we do not find these opinions to be persuasive for a number of reasons. Initially, it is this court’s belief that the Commonwealth’s investigation shows case bias. The Commonwealth is seeking to make all machines like the Pace-O-Matic machines into illegal gambling devices and their whole approach and intent is to shut down games regardless of the actual gameplay. The fact that Officer Wentsler never played the Follow Me feature while undercover is indicative of this. Thus, the Commonwealth as a whole is biased against the games and their approach lacks case credibility.”

Earlier this year, the Monroe County Court of Common Pleas ruled that our games are legal games of skill and alleged misconduct in the investigation and prosecution of legal skill games.

Last month, Monroe County Common Pleas Judge Jennifer Harlacher Sibum wrote: “The court finds that the Commonwealth improperly withheld and misrepresented material evidence relative to the issuance of the search warrant in this matter and that such conduct warrants the suppression of the seized property.”

Pennsylvania Skill has pumped new life into the Commonwealth’s small businesses, fraternal and social clubs and veterans’ organizations by providing them with an entertainment product that the public enjoys. Meanwhile, research data proves skill games do not impact the revenue of casinos and the lottery, achieving record profits yearly. Pennsylvania skill games are manufactured in the Commonwealth, and over 90% of the profits stay inside the state. That is unheard of in gaming and many other industries. Pace-O-Matic is proud of its record and looks forward to continuing to benefit Pennsylvania businesses, clubs, and taxpayers now and in the future.

Pace-O-Matic’s Pennsylvania skill products are manufactured by Miele Manufacturing in Williamsport, which has created nearly 200 direct jobs. Many of the materials used to make up the gaming machines come from companies in the Commonwealth. Additionally, Pennsylvania skill game revenue has become a lifeline to fraternal clubs and organizations across the Commonwealth including American Legions, VFWs and local fire companies.
As part of ongoing efforts to ensure compliance, Pace-O-Matic employs a team of former state police officers to enforce all terms of contracts and codes of conduct. These contracted terms limit the number of machines, where they are placed in a location and have protections in place to prevent anyone underage from playing the devices.

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In 2014, the Beaver County Court of Common Pleas ruled that Pace-O-Matic’s Pennsylvania skill games are legal as games of predominant skill. In addition, last year, the Pennsylvania Office of the Attorney General and the Clearfield County District Attorney’s office negotiated a settlement to return wrongfully seized Pennsylvania Skill games, related equipment and cash.

Compliance Updates

MGCB Issues Cease-and-Desist Order to BetUS

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The Michigan Gaming Control Board (MGCB) has issued a cease-and-desist order to BetUS, an offshore gambling operator, for illegally offering internet gaming and sports betting to Michigan residents without proper licensure.

Investigations by the MGCB revealed that BetUS was accepting wagers from Michigan residents on various gambling activities, including sports and casino-style games, without the necessary state authorization. This operation violates Michigan’s Lawful Internet Gaming Act, the Gaming Control and Revenue Act, and the Michigan Penal Code.

“Unlicensed operators like BetUS undermine the integrity of Michigan’s regulated gaming market and expose consumers to potential risks. The MGCB is committed to protecting Michigan residents by ensuring that all gambling activities are conducted legally and responsibly,” said Henry Williams, Executive Director of MGCB.

The cease-and-desist order mandates that BetUS immediately halt all operations involving Michigan residents. The company has 14 days to comply or face further legal action in coordination with the Michigan Department of Attorney General.

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Compliance Updates

Peru Reports 40% Drop in Illegal Online Gambling

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Peru’s Ministry of Foreign Trade and Tourism (Mincetur) reported that, a little more than a year after having implemented the law that regulates the online sector, it has been able to reduce by 40% the offer of illegal games in digital platforms and applications.

In a public statement, the Executive portfolio in charge of regulating gambling also highlighted that, thanks to the inspection work, 15% of the illegal websites “have left the Peruvian market” and that “payment methods providers and financial entities have been contacted to block services to unauthorized operators”.

Based on this, Mincetur highlighted that “Peru has managed to position itself as a regional referent in the integral regulation of gambling” and that, through the normative framework, it was possible to “protect the consumer, guarantee transparency in the operations and promote the formal and sustainable economic development”.

The Ministry highlighted that with the implementation of Law No 31557, which regulates sports betting and online games, “the country became the third country in Latin America to establish clear regulations for this activity”.

“Since its entry into force in February 2024, 60 technological platforms have been authorized and 280 linked service providers have been registered, as well as the accreditation of nine international certification laboratories,” Mincetur said.

In this regard, the Ministry stated that “this regulation has made it possible to formalize the digital sector, promoting an environment of trust for both operators and users.” At the same time, it has allowed “new investment opportunities, boosting the digitalization of entertainment and strengthening the country’s tax collection”.

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Compliance Updates

Colombia’s Coljuegos Intensifies its Efforts to Block Illegal Gambling Websites

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Coljuegos, the regulatory authority overseeing gambling sites in Colombia, has intensified its efforts to block illegal gambling websites. Coljuegos will now directly send requests to Internet Service Providers to block websites that operate online games without paying the respective royalties.

Coljuegos President Marco Emilio Hincapié said this strategy will be implemented based on Circular 017 of 2025, issued by the Ministry of ICT, which defined the guidelines and procedures for blocking websites dedicated to the exploitation, sale, payment, or advertising of unauthorized games of chance.

“From the Government of Change, we are working together to protect the gambling industry. After several roundtable discussions with the Ministry of Information and Communications (MINTIC), we were able to simplify the process of blocking illegal gambling websites,” Hincapié said.

The president of the entity highlighted that, to date, nearly 26,600 blocking orders have been issued to unauthorized betting sites.

“With this new procedure, we hope to block illegal platforms more quickly. We will no longer have to submit requests to different entities; instead, we will be able to order blocks directly from internet providers,” Hincapié said.

This Ministry of Information and Communications (MINTIC) measure is issued in compliance with Decree 0175 of 2025, which adopted tax measures due to the state of internal unrest declared by the National Government.

“In addition to fighting illegal operators, our goal is to protect resources for peace and health, as well as provide greater safeguards for the 14 authorized operators in the country,” Hincapié added.

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