Gambling Addict Sentenced for Embezzling $533K from Town


Published on: September 17, 2025, 04:30h.

Updated on: September 17, 2025, 04:31h.

  • A former municipal official has been sentenced for embezzlement
  • The secretary-treasurer confessed to stealing funds to support her gambling dependency

A woman from Pennsylvania is facing a minimum of two years in state prison after she confessed to embezzling nearly $533,000 from Gregg Township while serving as its secretary and treasurer.

gambling addiction Pennsylvania Gregg Township
The Old Gregg School Community & Recreation Center. The former secretary-treasurer will serve years in prison after embezzling nearly $533K to fuel her gambling addiction. (Image: Gregg Township Office)

Centre County Judge Katie Oliver sentenced Pamela Hackenburg, 56, from Union County, to a four-year maximum term, along with two years of probation. She can apply for parole after completing 24 months.

Hackenberg confessed to using her position to steal at least $532,747.67 from the small township, which has a population of just over 2,300 residents, stating that she is a gambling addict who financed her addiction through her theft.

“She didn’t just steal from the employees of Gregg Township; she stole from every taxpayer in the township,” remarked Centre County Deputy District Attorney Crystal Hundt.

DraftKings Transactions

Prosecutors detailed an investigation that revealed Hackenburg made $322,185 in transactions through her DraftKings account, which facilitates both online sports betting and casino gaming in Pennsylvania.

Additionally, evidence showed that she utilized stolen funds for other personal expenses, including buying items from liquor stores, getting her nails done, and taking a vacation in Florida. Hackenburg pleaded guilty to theft, identity theft, and access device fraud.

The former secretary and treasurer held full control over the township’s financial matters, with the embezzlement starting just two months after her March 2019 hire. The theft continued until she was placed on unpaid leave in March 2024 amid the inquiry and was subsequently terminated in December.

The township supervisors had little oversight over her role, allowing her to siphon funds unnoticed. The crime was uncovered when a bank statement, usually opened by Hackenburg, was instead reviewed by another township employee.

An audit later revealed that the financial records looked as though a tornado had struck, as described by tax preparer Rhonda Sweely.

The audit showed that Hackenburg charged personal expenses to the township’s credit cards more than 3,600 times, including for her DraftKings account.

Unlikely Restitution 

In addition to her prison sentence, Judge Oliver mandated Hackenburg to pay $615,580.78 in restitution to the township. Hackenburg claims she lacks the funds but is committed to making diligent efforts to repay what was taken.

She expressed in court that while she identifies as a Christian, “it doesn’t mean I don’t make mistakes.”

“It was never my aim to harm you all,” Hackenburg addressed the residents of Gregg Township. “I hope some of you can find it in your hearts to forgive me.”

Officials from Gregg Township report that they are currently facing challenges in obtaining loans for essential road maintenance.

Once the former treasurer serves her sentence, a new casino is expected to open in State College, near Penn State University, which is less than 50 miles from her home in Union County.

The Pennsylvania Gaming Control Board does not list Hackenburg among those involuntarily excluded from the state’s physical casinos. Her online gaming access also remains intact, though casino operators may opt not to accept her bets.

She claims to be actively working to overcome her addiction by attending Gamblers Anonymous meetings.



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