A clandestine network of illegal gambling machines has been dismantled in Pennsylvania, culminating in a guilty plea from Deibler Brothers Novelty Company. The Schuylkill County-based firm confessed to operating a widespread, unlawful operation that stretched across numerous counties, deceiving both business owners and patrons.
The company faced a felony charge of corrupt organizations in Schuylkill County Common Pleas Court. As part of the agreement, Deibler Brothers will be placed on probation and forced to surrender $3 million in cash and assets to the state – a significant penalty in the ongoing battle against illegal video gaming.
Attorney General Dave Sunday revealed that repeated warnings were ignored before legal action was taken. He emphasized the company’s deliberate disregard for state regulations, flooding Pennsylvania with these illicit machines despite clear directives.
This wasn’t a quick victory; investigators spent years meticulously building the case. The collaborative effort involved the Pennsylvania State Police, the Attorney General’s Office, and the Bureau of Liquor Control Enforcement, all working to expose the extent of the operation.
The machines themselves were deceptively marketed, designed to appear legitimate despite their unlawful status. They infiltrated bars, convenience stores, and small businesses across more than a dozen counties, creating widespread confusion about the legality of these games.
The investigation uncovered troubling connections between Deibler Brothers and individuals already facing federal charges. Arthur Deibler, Donald Deibler, and Joel Ney, the owners of the novelty company, had ties to Rick Goodling, a former Pennsylvania State Police corporal and compliance director for Pace-O-Matic.
Just last week, Goodling admitted guilt to money laundering, a development that significantly strengthens the state’s case. He previously served as a key figure at Pace-O-Matic, a major supplier of these controversial “skill” games.
Federal authorities allege Goodling concealed over $100,000 in taxable income between 2019 and 2022. He reportedly disguised cash payments from gaming operators as business travel expenses, essentially rewarding them for continuing to use Pace-O-Matic machines outside of established rules.
Goodling now faces a potential five-year prison sentence, the result of a joint investigation by the IRS, FBI, and state police. Ironically, he had publicly defended these games as legal just a few years prior, claiming they relied on skill, not chance.
These cases represent a growing crackdown on illegal gambling across both state and federal levels. The Pennsylvania Gaming Control Board has also stepped up enforcement, recently adding 22 individuals to its exclusion list, effectively banning them from all regulated gaming venues.
