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The attorney general of Pennsylvania Office has partnered on Monday (February 9) that a Schuylkill County novelty game company pleaded guilty to what prosecutors described as a sweeping illegal gambling operation that reached far beyond its home base. At the center of the case is the Deibler Brothers Novelty Company, which authorities say installed and operated hundreds of illegal video gambling machines in many parts of the state.
In Schuylkill County Common Pleas Court, the company pleaded guilty to corrupt organizations, a first-degree felony. Under the plea agreement, the Deibler Brothers were placed on probation and ordered to forfeit $3 million in cash and other assets to the Commonwealth. The officials said that the forfeiture is one of the bigger penalties tied to Pennsylvania’s enforcement action against illegal video gaming.
Attorney General Dave Sunday said the company ignored repeated warnings before filing charges. “This company has been warned many times, and continues to defy state regulations by flooding Pennsylvania counties with illegal gambling machines,” Sunday said. He added, “this resolution of the request ensures a large loss of assets of the Commonwealth, and is the second conviction in recent days against offenders who contribute to the disorganized environment of illegal video gaming in Pennsylvania.”
Investigators described the case as the result of a multi-year effort involving the Pennsylvania State Police, the Attorney General’s Office, and the Bureau of Liquor Control Enforcement. According to authorities, the machines were marketed in ways that suggested they were legal, even though they weren’t. They are placed in bars, convenience stores, and other small businesses in more than a dozen counties, often creating confusion for operators and customers about what is allowed under state law.
The former executive of Pace-O-Matic is said to be involved with the Pennsylvania novelty game company
Prosecutors also pointed to connections between the Deibler Brothers and figures under federal investigation. The owners of Deibler Brothers Novelty, Arthur Deibler, Donald Deibler, and Joel Ney, along with Rick Goodling, a retired Pennsylvania State Police corporal and former Director of National Compliance for Pace-O-Matic. Goodling pleaded guilty last week on money laundering, adding more context to the state’s case against the new gaming company.
Goodling previously served as a compliance officer at Atlanta-based Pace-O-Matic, a major supplier of so-called skill games. Federal authorities said that from 2019 to 2022, he hid taxable income by falsely labeling cash payments from gaming operators as business travel expenses. Prosecutors allege the payments were made in exchange for allowing the continued use of Pace-O-Matic machines outside of company rules. The US Attorney’s Office said the conduct resulted in “a tax loss of more than $100,000 to the United States.”
Goodling, who is a retired Pennsylvania State Police corporal, now faces five years in federal prison. His case was investigated by the IRS, FBI, and state police. As recently as 2023, Goodling has publicly defended games of skill as legal, it is argued that they rely on the player’s ability rather than chance.
The cases point to a broader push by state and federal authorities to prevent illegal gambling activities. The Pennsylvania Gaming Control Board has also increased enforcement, recently adding 22 people to its involuntary lists. Individuals are now banned from casinos, video gaming terminals, and regulated online platforms.
Featured image: Screenshot from Deibler Brothers Novelty Company
The post Pennsylvania novelty game company pleads guilty to sweeping illegal gambling charges first appeared in ReadWrite.
