Latest news with #Pace-O-Matic
Yahoo
14-05-2025
- Yahoo
AG's office says it seized hundreds of illegal gambling machines disguised as skill games
A sign in a convenience store window advertises skill games, slot machine-like devices. (Peter Hall/Capital-Star) The Pennsylvania Attorney General's Office announced Tuesday it seized hundreds of illegal gambling machines allegedly supplied to storefront casinos and other businesses by a pair of companies owned by a Pittsburgh man with prior convictions for illegal gambling. The owner is also named in a 2024 grand jury presentment charging a former executive of skill game maker Pace-O-Matic with taking kickbacks for ignoring complaints to the company about illegal gambling machines. The attorney general's office said its agents and state troopers seized more than 400 illegal gambling devices from dozens of western Pennsylvania establishments in a series of raids in March. J.J. Amusements and Buffalo Skill Games are each charged with a felony count of being a corrupt organization, according to court documents. No lawyers for the companies are named in the court filings. 'These devices were essentially slot machines dressed up as skill games,' Attorney General Dave Sunday said in a statement. 'I commend our partners at the Pennsylvania State Police for helping disband a large-scale operation that netted a tremendous amount of illegal gambling profits.' A search of the companies' warehouse in Homestead, Allegheny County, uncovered $175,000 in cash and other signs of illegal gambling. The facility also had an elaborate surveillance system with dozens of monitors streaming live video and audio from the gambling locations, court documents say. According to the charging documents, skill games are distinguishable from video gambling devices because they require players to use their judgment to win. The machines seized are similar to video slot machines, except that if only two symbols match, the machine prompts the player to 'nudge' the third into place to recover their initial bet plus a small prize, the court documents say. While a spokesman for the attorney general's office said it is pursuing charges only against Conley's companies, court records show Conley was charged last year with illegal gambling offenses by the Cumberland County district attorney's office. An attorney for Conley identified in a court filing did not immediately return a call Wednesday. Federal court records show Conley was convicted of gambling and money laundering in 1995. Conley and his son, John D. Conley, are also named in court documents as the leaders of an illegal gambling enterprise that paid nearly $100,000 in kickbacks to Ricky Goodling, a former state police corporal, who worked as national compliance director for Georgia-based Pace-O-Matic until 2023. A spokesperson for Pace-O-Matic said the company fired Goodling when it learned of the investigation. Goodling is charged with racketeering and related offenses that stem from a years-long state police investigation. Also charged in the case are three employees of Deibler Brothers Novelty Co., a Schuylkill County company that prosecutors say distributed illegal gambling machines in 15 central and eastern Pennsylvania counties. The attorney general's office alleges Goodling took more than $500,000 in kickbacks from the Conley organization, Diebler Brothers and other operators to quash complaints about illegal slot machines. Prosecutors also allege Goodling helped distributors of the illegal devices obtain Pace-O-Matic's machines to attempt to disguise illegal machines and deflect law enforcement scrutiny. A preliminary hearing for Goodling in Schuylkill County is scheduled for May 22. Pace-O-Matic is the predominant operator of skill games in Pennsylvania. A series of court decisions has established that skill games are distinct from gambling machines and not covered by the state Gaming Act. But Pace-O-Matic has been a proponent of legislation to regulate and tax the games to confirm their legal status. Gov. Josh Shapiro said regulating skill games is one of his goals in this year's budget. His spending planestimates taxing the devices would generate around $370 million, recouping money the state lottery and casinos have lost. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
12-05-2025
- Entertainment
- Yahoo
Pace-O-Matic presents inaugural Integrity Award to Larry Hilimire
Leading skill games developer honors amusement industry legend as first award recipient Pace-O-Matic presents inaugural Integrity Award to Larry Hilimire DULUTH, Ga., May 12, 2025 (GLOBE NEWSWIRE) -- Pace-O-Matic and its founder, Michael Pace, have presented the first-ever Integrity Award to Larry Hilimire, amusement industry legend and owner of Staunton Automatics in New York. The award was presented to Hilimire at the Amusement and Music Operators Association New York (AMOA-NY) annual gala in Manhattan on April 28. The Integrity Award recognizes individuals in the amusement industry or related fields who exemplify the highest standards of integrity. Recipients are those who consistently demonstrate honesty, fairness, and ethical conduct in all aspects of their professional endeavors. For over five decades, Larry Hilimire has led Stanton Automatics with a rare blend of vision, integrity, and grit, growing a family business into one of the most respected music and amusement operations in the country. His leadership has transformed the amusement industry, not just through innovation, but by setting the standard for how business should be done. 'Larry's a straight shooter — honest, dependable, and always guided by principle,' said Michael Pace, founder of Pace-O-Matic and creator of the Integrity Award. 'He's someone who will tell you what you need to hear, even if it's not what you want to hear. That's someone you can trust; that's integrity. Thank you, Larry, for your decades of leadership, your unwavering ethics, and your lasting impact on the industry.' Mark Twain once famously said, 'Do the right thing. It will gratify some people and astonish the rest.' The Integrity Award is intended to celebrate those who live by this example. It will honor game developers, executives, partners, or any other professionals who go above and beyond to ensure their actions reflect a deep commitment to doing what is right, even when faced with challenges or when it might not be the easiest path. This award is not just about what one achieves but how one achieves it, highlighting the importance of integrity in the industry. 'Humbled, grateful, and shocked are just a few things I am feeling as I receive this award,' said Hilimire. 'I want to thank Michael and Karmin, as well as the Pace-O-Matic family, for this great recognition. It is truly the highlight of my lifelong career.' Hilimire added, 'I am sure all of you know who Tim Coughlin is, NY Giants head coach and two-time Super Bowl Champion. I often think of the picture of Tom sitting in his office after one of his Super Bowl wins, the trophy on his desk, with his feet up and a sign on his lap that read 'Mission Accomplished'. I am going to have my son take a picture of me, feet up on my desk, with this beautiful award in hand, and a sign that says, 'Mission Accomplished'.' The award is embodied in a stunning piece of hand-blown glass art. The award features a clear, luminous glass structure with intricate layers and varying colors. Every award is a unique art piece, and no two are the same. This is the first of several Integrity Award recognitions, which will be announced and presented in the coming months. Media Contact: Rachel Albritton 502-905-5170 A photo accompanying this announcement is available at in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-04-2025
- Business
- Yahoo
Hanover judge rules Queen of Virginia skill games are legal, delivering win to small businesses
The new cashless skill game terminals made by Georgia-based Pace-O-Matic don't require coins or tokens to play. (Image courtesy of Pace-O-Matic) A Hanover County judge handed down a ruling Wednesday that could reshape the future of skill games in Virginia, siding with a convenience store owner who faced criminal charges for operating several Queen of Virginia (QVS2) skill machines. Judge Hugh Campbell of the Hanover County General District Court dismissed the case against David Bogese, owner of the Breez-In Mart, after finding that the QVS2 devices at his store did not meet the legal definition of illegal gambling machines under state law. The ruling marks a significant victory for small business owners across the commonwealth who have fought to keep the machines in their stores amid legal ambiguity and political pressure from the casino industry. 'It feels good to get this decisive ruling today defending the right for small businesses to operate within the law,' Bogese said after Wednesday's hearing. 'Today is a victory not just for our case and our business, but for small businesses across the commonwealth to take part in our free market and against the overreaches of government. I am looking forward to getting back to business as usual.' Bogese had been charged with a misdemeanor under Virginia Code §18.2-331, which prohibits possession of an 'illegal gambling device.' The charge stemmed from the presence of four QVS2 skill games, developed by Georgia-based software firm Pace-O-Matic, at his store in Hanover County. Prosecutors argued that the machines violated the state's gambling statute, which bans devices that require players to insert a coin, bill, ticket, token, or similar object to activate gameplay. But the defense countered that the QVS2 terminals in Bogese's store did not require the insertion of any such object and were, therefore, fully compliant with Virginia law. Attorneys Ryan McDougle and Bill Stanley — both of whom are also Republican members of the Virginia Senate — represented Bogese. They moved to dismiss the charge through a motion to strike the commonwealth's evidence, asserting that prosecutors had failed to prove the QVS2 machines met the statutory definition of an illegal gambling device. Judge Campbell ruled in favor of the defense, applying the 'rule of lenity' — a legal doctrine requiring that ambiguities in criminal law be interpreted in the defendant's favor. He found that because the QVS2 machine lacked any requirement for players to insert currency or objects into the machine, it did not qualify as a prohibited device under the law. The judge also found that the statute itself was too vague, creating uncertainty for business owners trying to follow the law. His ruling echoed concerns raised repeatedly in recent years by small business advocates and gaming law experts. A spokesman for Attorney General Jason Miyares, whose office was investigating the legality of QVS2 machines, did not immediately respond to a request for comment Thursday. The QVS2 terminals represent a redesigned version of the Queen of Virginia Skill games that had become popular in bars, restaurants and convenience stores across the state. Unlike earlier models, which included slots-style mechanics and coin operation, the QVS2 machines are entirely cashless. Players must check in with a store attendant before starting a game, and no coin, cash, or other tangible object is inserted into the device. The games were launched in Virginia in August 2024 by Pace-O-Matic, which said it developed the new model specifically to comply with Virginia law. The company also voluntarily raised the minimum age to play the games from 18 to 21 in anticipation of possible legislative changes. Prior to rollout, the company consulted with several prominent legal experts, including former Virginia Attorneys General Jerry Kilgore and Tony Troy, who — along with regulatory attorneys Jason Hicks and Stephen Piepgrass — issued a joint legal opinion stating that the games were legal under current statutes. At the time, the QVS2 devices were still in a beta-testing phase across Virginia, with limited deployment intended to assess their performance and regulatory fit. It is unknown how many of the machines are currently operating statewide. 'Pace-O-Matic has consistently maintained that our QVS2 skill game is fully compliant with the plain language of the law in Virginia. We have never and will never operate outside the confines of the law, and this ruling affirms that,' Pace-O-Matic spokeswoman Rachel Albritton said in a statement Thursday. 'While this is a significant legal victory for Pace-O-Matic, the real winners are the hundreds of small businesses across the commonwealth, many of which are family-owned mom-and-pop shops, that depend on income from skill games to survive. Furthermore, this legal win underscores Pace-O-Matic's dedication to fostering a responsible gaming environment while providing legal gaming options that support small businesses.' Skill games had existed in Virginia for decades in a largely unregulated space, but that changed in 2020 when the General Assembly passed legislation banning the devices. The move came amid concerns from some lawmakers and casino developers that the widespread use of skill games could undercut the profitability of newly approved casino projects. During the height of the COVID-19 pandemic, the state granted a temporary reprieve, allowing skill games to remain in operation for one year to help small businesses survive the economic downturn. That reprieve expired in 2021. The Virginia Alcoholic Beverage Control Authority, which had been tasked with temporary oversight, ended enforcement efforts the same year, leaving skill game operators in legal limbo. In the absence of clear regulations, businesses continued to operate the games until late 2023, when the Supreme Court of Virginia reinstated the state's ban, reversing a lower court decision that had paused enforcement. That ruling once again cast uncertainty over whether businesses using newer skill games — like the QVS2 — were in violation of the law. Earlier this year, during the 2025 legislative session, Virginia lawmakers weighed a series of proposals aimed at bringing regulation and structure to the skill game industry. Among them was Senate Bill 1322, introduced by Sen. Bill DeSteph, R-Virginia Beach, which proposed a $1,200 monthly tax per gaming device. The bill would have directed 70% of the resulting revenue to a new Elementary and Secondary Education Fund, with the remainder split among local governments, infrastructure projects and programs addressing gambling addiction. The legislation was ultimately referred to the budget process for further discussion. DeSteph defended the measure by pointing to a previous effort under former Gov. Ralph Northam that generated $138 million in revenue from 11,000 machines. 'This is the same model, to keep it simple,' DeSteph said at the time, noting added safeguards such as ABC-issued tracking stickers and geolocation key cards to enhance accountability. Despite support from some lawmakers who saw the legislation as a way to raise revenue while introducing regulatory oversight, similar efforts faced resistance from Gov. Glenn Youngkin, who vetoed related legislation last year. In a separate effort, Sen. Bryce Reeves, R-Spotsylvania, introduced SB 1287 to create an independent Virginia Gaming Commission that would oversee all forms of legal gambling in the state, excluding the lottery. The bill envisioned consolidating regulatory authority over casinos, sports betting and charitable gaming into a single agency, absorbing staff from existing state departments to improve oversight and reduce redundancy. Supporters framed the proposal as a step toward modernizing and unifying Virginia's gaming regulation. 'While I'm not a particular fan of gaming, I also face the reality that Virginia is becoming a gaming state,' said McDougle, addressing the Senate committee reviewing the measure. 'We ought to have a little bit of a focus on how we're doing that and make sure that we're making good decisions.' Ultimately, neither proposal made it into the revised budget lawmakers sent to Youngkin in February. While the governor has expressed support for establishing a gaming commission, he remains opposed to legalizing electronic skill games and has yet to endorse any plan that would bring them fully into a regulated market. How Wednesday's ruling in Hanover — which marked the first time a Virginia court has addressed the legality of the new QVS2 models in a criminal context — will impact future legislative efforts, remains to be seen. The Virginia Merchants and Amusement Coalition (VA MAC), which represents store owners and game operators, issued a statement calling the ruling 'a clear victory for small businesses.' 'Many of our members are operating legal QVS2 skill games as a means of supplemental income to keep their doors open,' said VA MAC President Rich Kelly. 'Skill games give local small businesses, many of which are family-owned, additional income to pay wages, make improvements, and in some cases, keep the lights on.' He added, 'While we are thrilled with the outcome of this case, we continue to look forward to working with legislators on a solution to regulate and tax skill games in the future.' Stanley, one of the two state attorneys representing Bogese, echoed that sentiment, framing the ruling as a blow to what he characterized as 'casino-driven' efforts to squeeze small businesses out of Virginia's emerging gaming industry. He said that the ruling should instill confidence in all small business owners who operate or want to operate skill games legally. 'We've shown that the law, as written, does not prohibit these machines. Now it's time for lawmakers to bring clarity through responsible regulation.' SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
05-02-2025
- Business
- Yahoo
Governor Shapiro calls for the taxing of PA Skill games as a way to pay for budget increase
HARRISBURG, Pa. (WTAJ)– About 20 minutes into his hour-and-a-half-long budget address on Tuesday, Governor Josh Shapiro proposed one way that he plans to pay for increases in the budget. 'There are 70,000 unregulated skill game terminals all across Pennsylvania,' Governor Shapiro said. 'District Attorneys across our commonwealth are calling on us to regulate these machines.' Shapiro said that is time that Pennsylvania begins taxing PA Skill Game Machines like they are casino games. What separates Skill games from casino slot machines is that they do require the player to make a choice, and they can technically win every time. The Governor said that this distinction isn't a good enough reason for the state to be losing money over it. Pa. House Republicans call Shapiro's budget 'unsustainable' 'The Pennsylvania lottery lost an estimated $200 million dollars over the last five years, primarily due to these unregulated skill games,' Governor Shapiro said. Pace-O-Matic is the company that owns and operates PA Skill games. WTAJ News spoke with the chief public affairs officer for the company, Mike Barley, on Tuesday, who said that the Governor wants to reach into an industry that is benefitting small businesses that have their games. 'The revenue that is being generated from skill games is helping them to stay afloat, hire Pennsylvanians, continue to offer additional benefits and higher wages, make improvements to their business,' Barley said. For that reason, they are asking the Governor to consider a lower tax rate than the 52% proposed one. Barley said that the money generated by the game machines isn't leaving the state anyway. 'For our model over 90 percent of the revenue that is generated from skill games is staying in the commonwealth,' Barley said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
