Compliance Updates: 2019

The Pennsylvania Skill Compliance and Consumer Affairs Team works to ensure operators and locations are compliant so Pennsylvania Skill amusement devices are not commingling with illegal gambling devices.

AUGUST 2019

Pennsylvania Skill assisted Tom Marino's tour highlighting establishments who are advertising their businesses as mini-casinos or operating illegal gambling devices. Many locations with Gracie Technologies illegal gambling devices are transitioning to our legal amusement devices. Getting illegal gambling equipment off the streets helps us in our legislative efforts to pass meaningful regulations that help main a true skill game market.

JULY 2019

Regarding the false email sent by the Pennsylvania Liquor Control Board (PLCB) and the harassment by lottery officials who falsely claimed that Pace-O-Matic Pennsylvania Skill amusement devices are illegal, we are taking action to stop this harassment.

Top officials in the Governor's office and the PLCB confirmed that the PLCB will not suspend liquor licenses in regard to skill games. Please report, via email, any incidents in which the LC, LCE, or lottery representatives are visiting your locations and/or threatening/harassing them.

JUNE/MAY 2019

Pace-O-Matic (POM) of PA is in litigation with PSP over the legality of Pennsylvania Skill amusement devices. However, we need your help. We are requesting that you report to our Compliance and Consumer Affairs Team any statements made to locations/operators by law enforcement concerning Pennsylvania Skill games. To do so, document the following:

• Name and address of the location

• Date and time

• Officer's full name

• Officer's statements about Pennsylvania Skill machines

If officers are telling clubs, bars, and locations that Pennsylvania Skill games are illegal but do not seize them or that they are not seizing them right now for any reason, we need to know to help with our litigation.

By continuing to be proactive, we can remain ahead of the situation. Documenting compliance issues allows us to aid litigation.

APRIL 2019

The Pennsylvania Skill Terms and Conditions states that pre-approved marketing materials may be used to promote the Pennsylvania Skill brand. Marketing materials, including banners, signs, coasters, decals, and bottle openers, may be purchased from Miele Manufacturing.

It is a violation of the Terms and Conditions for an operator/location to utilize false, misleading, or unauthorized marketing materials. The compliance team has investigated these violations and has authorized penalties too violators.

As we continue working with legislators, it is important to maintain uniform messaging to distinguish Pennsylvania Skill as a serious force in the state market. Homemade or other non-approved marketing materials could cause confusion for customers, lawmakers, or industry partners.

MARCH 2019

On a weekly basis, we get calls about rogue operators. Previously, am operator called to inform us that he may be losing a location due to a competitor offering a 65% split. Such a split is against the Terms and Conditions that Pennsylvania Skill operators have signed and is bound by.

Rogue operators also offer non-adjudicated games, mixing these in games in a location with Pennsylvania Skill games also violates the Terms and Conditions.

The Compliance Team makes every effort to ensure these operators are identified and penalized for violating the Terms and Conditions. We rely on fair, ethical operators to step up, assist, and identify operators who are violating the Terms and Conditions.

FEBRUARY 2019

As a Compliance Officer for Pennsylvania Skill, one of our duties include the prevention of Terms and Conditions violations. The Compliance and Consumer Affairs Team routinely conducts investigations, however, we can't investigate violations we are unaware of.

Pace-O-Matic and Miele Manufacturing have worked to ensure Pennsylvania Skill games are recognized as lawful games of predominant skill by the Pennsylvania judicial system. Since, all operators and locations have enjoyed and shared the benefits that Pennsylvania Skill games provide. The revenue split was designed so operators have a fair opportunity to make the same amount as the next operator.

Pace-O-Matic and Miele Manufacturing foresaw what happened in other states where similar games are in place and unprofessional operators ruined the market by offering larger and unsanctioned splits to poach locations.

The Compliance Team needs help to prevent unfair business practices from taking root here in Pennsylvania. To report a violation, contact Rick Goodling, rick.goodling@paceomatic.com, or call (570) 244-3123 Ext. 5.

JANUARY 2019

The Compliance Team ensures locations and operators adhere to the Terms and Conditions. To participate in the Loyalty Program and enjoy the specials and rewards offered that come with being a Pennsylvania Skill operator, a copy of the Terms and Conditions, signed by the operator, must be held by Miele Manufacturing.

The Compliance Team’s enforces the Terms and Conditions to assist and protect operators and the Pennsylvania Skill brand. Operation of our business in accordance with the Terms and Conditions presents Pennsylvania Skill as a proactive and professional entity to the legislators and law enforcement.

Enforcement of rules protects our operators’ financial interests by stopping unapproved splits that spread quickly. Operators in other states have suffered in split wars and now find themselves collecting a lower percent of the revenue generated by their games. Ensuring compliance to the 20/40/40 split preserves profit margins for all and maintains a fair, level field for all operators.

DECEMBER 2018

Since July 2018, the Compliance Team has sped up investigating complaints regarding Terms and Agreement violations. Our team is comprised of four retired Pennsylvania state policemen, Rick Goodling, Brian Langan, Tom Weaver, and Jerome "Jerry" Botchie, with over 108 years of law enforcement and investigative experience.