Published on: February 10, 2026, at 09:35h.
Updated on: February 10, 2026, at 08:38h.
- A slot machine distributor involved in illegal activities has admitted guilt in Pennsylvania
- The firm colluded with a compliance manager for skill games
- The distributor has forfeited $3 million in assets and cash to the state
An unlawful gambling operation that misled small businesses across Pennsylvania to set up unregulated slot machines in their establishments has entered a guilty plea to a felony charge.
Pennsylvania Attorney General Dave Sunday announced that Deibler Brothers Novelty Company, based in Schuylkill County, admitted to charges of corrupt organization. As part of a plea agreement, a court sentenced the company to probation and mandated the forfeiture of $3 million in cash and assets.
“This company had multiple opportunities to comply and chose to ignore state laws, oversaturating counties with illegal gambling devices,” said General Sunday. “This plea agreement allows for a significant financial penalty for the Commonwealth and marks the second recent conviction for those contributing to the chaotic landscape of illegal video gaming in Pennsylvania.”
The owners of Deibler Brothers Novelty—Arthur Deibler, Donald Deibler, and Joel Ney—collaborated with Ricky Goodling, the former national compliance director at Pace-O-Matic (POM), who allegedly overlooked the presence of Deibler’s illegal machines in establishments that were authorized for legal skill games. POM is known for the well-known Pennsylvania Skill games, which were declared non-gambling by a 2023 ruling from the Pennsylvania Commonwealth Court.
Deibler Brothers primarily supplies and distributes gaming products including ATMs, jukeboxes, pool tables, arcade machines, and bar-top games to various establishments.
Pay to Ignore Violations
POM’s offerings blend skill with chance, whereas the machines distributed by Deibler Brothers were more akin to traditional slot machines found in licensed casinos.
As the compliance director at POM, Goodling, a former Pennsylvania State Police corporal, was responsible for ensuring that Pennsylvania Skill and other POM games operated only in compliant venues. However, Sunday’s office revealed that Goodling provided POM with positive inspection reports for sites that were actually hosting illegal slot machines.
Goodling has pled guilty to a first-degree felony for engaging in unlawful activities. According to Sunday, Goodling received “hundreds of thousands of dollars” in bribes from non-compliant distributors and operators rather than alerting POM about compliance issues.
In a statement to Casino.org, POM affirmed that it “immediately” terminated Goodling’s employment upon learning of the state investigation regarding his actions.
Challenges in Pennsylvania Skill Games
State authorities estimate that approximately 70,000 unregulated skill games are operating within Pennsylvania. Governor Josh Shapiro (D) is pushing for regulation and taxation of these games to enhance educational funding.
The legitimate gaming industry—primarily casinos and the Pennsylvania Lottery—oppose the proliferation of skill games, claiming they divert essential revenues. There are also serious concerns that these skill games may be exacerbating gambling addiction rates.