Pennsylvania novelty game company pleads guilty in sweeping illegal gambling case
The attorney general of Pennsylvania announced on Monday (February 9) that a Schuylkill County novelty game company has admitted guilt in what prosecutors describe as a sweeping illegal gambling operation that reached far beyond its home base. At the center of the case is Deibler Brothers Novelty Company, which authorities say placed and operated hundreds of unlawful video gambling machines across large 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, Deibler Brothers was placed on probation and ordered to forfeit $3 million in cash and other assets to the Commonwealth. Officials say the forfeiture is one of the larger penalties tied to Pennsylvania’s enforcement actions against illegal video gaming.
Attorney General Dave Sunday said the company ignored repeated warnings before charges were filed. “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,” Sunday said. He added, “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.”
Investigators describe the case as the result of a multi-year effort involving 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 were not. They were placed in bars, convenience stores, and other small businesses across more than a dozen counties, often creating confusion for both operators and customers about what state law actually allows.
Former Pace-O-Matic executive allegedly linked to Pennsylvania novelty game company
Prosecutors also pointed to connections between Deibler Brothers and figures already under federal scrutiny. Owners of Deibler Brothers Novelty, Arthur Deibler, Donald Deibler, and Joel Ney, were affiliated with Rick Goodling, a retired Pennsylvania State Police corporal and former Director of National Compliance for Pace-O-Matic. Goodling pleaded guilty last week to money laundering, adding further context to the state’s case against the novelty game company.
Goodling previously served as a compliance officer for Atlanta-based Pace-O-Matic, a major supplier of so-called skill games. Federal authorities say that from 2019 through 2022, he concealed taxable income by mislabeling cash payments from gaming operators as business travel expenses. Prosecutors allege those payments were made in exchange for allowing continued use of Pace-O-Matic machines outside company rules. The U.S. Attorney’s Office said the conduct resulted in “a tax loss of over $100,000 to the United States.”
Goodling, who is a retired Pennsylvania State Police corporal, now faces up to five years in federal prison. His case was investigated by the IRS, FBI, and state police. As recently as 2023, Goodling had publicly defended skill games as legal, arguing they rely on player ability rather than chance.
The cases point to a broader push by state and federal authorities to rein in illegal gambling activity. The Pennsylvania Gaming Control Board has also increased enforcement, recently adding 22 people to its involuntary exclusion lists. The individuals are now barred from casinos, video gaming terminals, and regulated online platforms.
Featured image: Screenshot from Deibler Brothers Novelty Company
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