Pennsylvania Gaming Company Fined $3M After Installing Illegal VGTs Across State

Pennsylvania Attorney General Dave Sunday announced that Deibler Brothers Novelty Company has been ordered to pay $3 million in cash and assets to the state for installing hundreds of illegal video game terminals (VGTs).

The company pleaded guilty to corrupt organizations, a first-degree felony, on Friday. In addition to forfeiting $3 million, a Schuylkill County Common Pleas Judge sentenced the company to probation.

In a press release, Attorney General Sunday stated, “This company was warned time and time again, and continued to snub its nose at state regulations by flooding Pennsylvania counties with illegal gambling machines.

“This plea resolution secures a substantial forfeiture of assets to the Commonwealth, and is the second conviction in recent days against offenders contributing to the disorganized environment of illegal video gaming in Pennsylvania.”

Owners Connected to Former Police Corporal

Prosecutors said the owners of Deibler Brothers Novelty, Arthur Deibler, Donald Deibler, and Joel Ney, were affiliated with Ricky Goodling, a retired Pennsylvania State Police corporal, who pleaded guilty to money laundering last week.

Goodling’s offenses occurred while he served as Director of National Compliance for Pace-O-Matic, which describes itself as the nation’s number one skill games developer.

Goodling admitted to accepting hundreds of thousands of dollars in payments from non-compliant distributors and operators, rather than reporting their non-compliance. 

Pace-O-Matic denied any responsibility in the case, blaming Goodling as a rogue employee. A company spokesperson stated, “While we continue to monitor the situation, law enforcement has assured us that Pace-O-Matic is not involved in or connected with any of the actions of Mr. Goodling. Upon first learning of an investigation into Mr. Goodling’s actions in November 2023, Pace-O-Matic immediately severed his employment.”

Goodling also pleaded guilty to tax crimes and is due to be sentenced in April.

Lawmakers Target Machines With Fees

The machines operated by Deibler Brothers Novelty Company were installed at bars, convenience stores, and other locations in numerous counties in Pennsylvania.

Lawmakers introduced legislation last year that aims to regulate the machines and charge businesses that use them. SB1079 would require skill-game machine operators to pay a $500 monthly fee per terminal. The senators project this system will raise roughly $300 million annually for the state.

One of the bill’s sponsors, Sen. Gene Yaw, said, “This legislation delivers immediate revenue, supports small businesses and veterans’ organizations, and puts safeguards in place to protect our communities. Every concern raised by the public and by our colleagues in the legislature has been carefully considered and directly addressed in this bill. It’s time to move beyond the rhetoric and enact meaningful reform.”

The proposal remains in Committee following its introduction in October.

Games Keep Pizza Prices Down

Business owners have protested against a crackdown on the machines, arguing they provide a crucial source of revenue. A representative from House of Pizza said the money from the machines helps the company’s employees and customers.

He stated, “From the income we received from the game of skills… we’re able to pay our employees overtime a little more… we do use it to keep the cost of food down… so our customers can get a good meal at a fair price.”

Sen. Anthony H. Williams, a co-sponsor of the bill to regulate the machines, disagreed. He said the public often complains about venues offering the machines, which amount to unlicensed gambling.

“Communities want relief from nuisance locations,” Williams said. “Our legislation helps law enforcement and local governments address the problem directly.”