Former Pace-O-Matic Compliance Director Indicted on Racketeering Charges

A former Pennsylvania State Police officer turned compliance director for a prominent skill games manufacturer is facing serious legal trouble. Rick Goodling, once the head of Pennsylvania’s gambling unit, is accused of exploiting his authority to promote the spread of controversial gambling machines while securing financial benefits for himself.

Allegations of Corruption and Abuse of Power

Pennsylvania prosecutors have charged Goodling, who served as national compliance director for Georgia-based Pace-O-Matic until 2023, with racketeering and related offenses. According to reports, he pocketed over $500,000 in bribes by facilitating illegal gambling operations and suppressing complaints about unlawful slot machines.

Goodling allegedly used his position to help distribute Pace-O-Matic’s skill games to operators who violated company policies, enabling their continued presence in the state despite bans. The allegations extend to aiding Deibler Brothers Novelty Co., a distributor barred by Pace-O-Matic for offering illegal slots alongside the company’s machines. Prosecutors claim Goodling ensured the banned distributor continued accessing Pace-O-Matic’s devices through covert agreements.

The Investigation Unveiled

The charges follow a prolonged undercover investigation led by Pennsylvania State Police. A detective embedded within Pace-O-Matic’s compliance team for several years uncovered what prosecutors describe as an “illegal scam to obtain large sums of money from gambling activities.”

Goodling’s compliance team, ironically designed to uphold regulations, reportedly turned into a network of collusion. Prosecutors claim Goodling manipulated internal complaints systems to bury grievances lodged by other operators. Despite his efforts to maintain secrecy, whistleblowers approached federal and state authorities, sparking the undercover operation that ultimately led to his indictment.

Deibler Brothers Employees Also Charged

Goodling is not alone in facing legal repercussions. Three employees from Deibler Brothers Novelty Co. were also charged for their alleged role in distributing illegal gambling machines across 15 Pennsylvania counties. The complaint outlines how Goodling worked with others to circumvent bans imposed on the distributor, ensuring a steady supply of skill games despite the company’s infractions.

Skill Games and the Legal Grey Area

At the centre of the controversy lies the ongoing debate about skill games themselves. These machines, which manufacturers argue are legal because they involve elements of skill, operate in a grey area of Pennsylvania law. Lawmakers have been divided, with some pushing for regulation and taxation while others seek outright bans. For now, the devices remain legal but contentious.

Pace-O-Matic is Pennsylvania’s largest supplier of skill games, making the charges against its former compliance director a significant blow. The company insists it had no knowledge of or involvement in Goodling’s alleged misconduct.

Pace-O-Matic Responds to the Charges

Pace-O-Matic expressed dismay over the allegations. In a statement to the Pennsylvania Capital-Star, a spokesperson said the company was “deeply troubled” by Goodling’s actions and confirmed his dismissal following the discovery of the investigation in late 2023.

The company emphasised its cooperation with law enforcement, adding, “While we are monitoring the situation, law enforcement has assured us that Pace-O-Matic is not involved in or connected with any of the alleged actions or charges facing Mr. Goodling.”

Case Summary Table:

The case underscores the challenges of regulating skill games, a divisive topic in Pennsylvania’s gaming landscape. As investigations continue, the legal and ethical scrutiny surrounding skill gaming manufacturers is likely to intensify.