Blog

• Gambling News

Former Executive of ‘Pennsylvania Skill’ Firm Pace-O-Matic Pleads Guilty to Money Laundering

A former official at Pace-O-Matic, a Georgia-based company that supplies the majority of the country's slot-like skill games and is responsible for Pennsylvania's well-known Pennsylvania Skill cabinet, has entered a guilty plea to money laundering.

Ricky Goodling, 59, of Mechanicsburg, admitted today to laundering illicit funds in connection with payoffs he received from people engaged in the distribution and operation of the contentious, unregulated gaming machines throughout the commonwealth, according to a statement made by Pennsylvania Attorney General Dave Sunday.

Sunday said that Goodling accepted bribes while serving as the director of national compliance for Pace-O-Matic. According to the findings of a combined investigation by Sunday's office and the Pennsylvania State Police (PSP), Goodling, a retired PSP corporal, took hundreds of thousands of dollars from operators and distributors of illegal skill games in return for failing to disclose their regulatory violations.

“The defendant pleaded guilty to a very serious charge and took accountability for his conduct, which was fueled by personal greed,” said Pennsylvania Attorney General Sunday.

On April 28, Goodling will get his punishment in Cumberland County Court. He entered a guilty plea to the charge of dealing in the proceeds of illegal activity, which is a first-degree felony.

Goodling's job as national compliance director was to make sure that POM's distributors, partners, and host facilities were following corporate policies. This included ensuring that taverns and restaurants that provide Pennsylvania Skill games weren't incorporating unlawful slot machines within their skill gaming services.

POM told Casino.org:

"Pace-O-Matic is deeply troubled today by the guilty plea of Mr. Goodling for conspiracy with others to underreport his taxable income. 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.”

Skills Games in Pennsylvania Are Unregulated

In contrast to casino terminals, skill games are slot-like gaming machines that use skill to determine the player's payoff.

In skill games, players can boost their chances by completing skill-based tests like tic tac toe and Simon Says memory challenges, rather than relying only on a random number generator to determine a machine's win rate. Skill games are strongly opposed by the Pennsylvania gambling Control Board and the legitimate, highly taxed, and regulated gambling sector it oversees. So does the Pennsylvania Lottery.

"[Goodling’s] actions contributed to the disorganized and problematic environment in which these games exist in the Commonwealth,” added Sunday.

The Pennsylvania Skill games are developed by Pace-O-Matic. Miele Manufacturing, located in Pennsylvania, assembles the gaming terminals and cabinets.

The gray area of law

Because skill games' payments aren't entirely dependent on luck, state courts have decided that Pennsylvania's Gaming Act doesn't apply to them. POM therefore thinks the games are lawful.

The skill lobby is still pushing for a legal and regulatory framework, urging Harrisburg lawmakers to enact laws that would establish rules for the machines' operation. Additionally, the industry is requesting a fair tax rate that is significantly lower than the 52% cut that Governor Josh Shapiro has suggested.