Pennsylvania novelty game company pleads guilty in sweeping illegal gambling case

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Donald Deibler stands on the left and Arthur Deibler stands on the right in a promotional image from their novelty game company website.

The lawyer normal of Pennsylvania announced on Monday (February 9) {that a} Schuylkill County novelty sport firm has admitted guilt in what prosecutors describe as a sweeping unlawful playing operation that reached far past its dwelling base. On the heart of the case is Deibler Brothers Novelty Firm, which authorities say positioned and operated a whole bunch of illegal video playing machines throughout massive elements of the state.

In Schuylkill County Frequent Pleas Court docket, the corporate pleaded responsible to deprave organizations, a first-degree felony. Underneath the plea settlement, Deibler Brothers was positioned on probation and ordered to forfeit $3 million in money and different property to the Commonwealth. Officers say the forfeiture is among the bigger penalties tied to Pennsylvania’s enforcement actions in opposition to unlawful video gaming.

Legal professional Basic Dave Sunday introduced that central Pennsylvania-based amusement firm Deibler Brothers Novelty Firm pleaded responsible to a felony cost concerning installment and operation of a whole bunch of unlawful video playing units at bars, comfort shops, and different… pic.twitter.com/0MwLbP1AY5

— PA Legal professional Basic Dave Sunday (@PAAttorneyGen) February 9, 2026

Legal professional Basic Dave Sunday mentioned the corporate ignored repeated warnings earlier than expenses have been filed. “This firm was warned time and time once more, and continued to snub its nostril at state rules by flooding Pennsylvania counties with unlawful playing machines,” Sunday mentioned. He added, “this plea decision secures a considerable forfeiture of property to the Commonwealth, and is the second conviction in latest days in opposition to offenders contributing to the disorganized atmosphere of unlawful video gaming in Pennsylvania.”

Investigators describe the case as the results of a multi-year effort involving Pennsylvania State Police, the Legal professional Basic’s Workplace, and the Bureau of Liquor Management Enforcement. In line with authorities, the machines have been marketed in ways in which steered they have been authorized, although they weren’t. They have been positioned in bars, comfort shops, and different small companies throughout greater than a dozen counties, typically creating confusion for each operators and clients about what state legislation truly permits.

Former Tempo-O-Matic govt allegedly linked to Pennsylvania novelty sport firm

Rick Goodling is a bald, bearded man in a dark polo shirt, demonstrates a video gambling or skill game machine inside an office setting. — Rick Goodling demonstrates Tempo-O-Matic gaming machines throughout a 2020 phase for native Fox affiliate WJAC-TV Information.

Prosecutors additionally pointed to connections between Deibler Brothers and figures already below federal scrutiny. House owners of Deibler Brothers Novelty, Arthur Deibler, Donald Deibler, and Joel Ney, have been affiliated with Rick Goodling, a retired Pennsylvania State Police corporal and former Director of Nationwide Compliance for Tempo-O-Matic. Goodling pleaded guilty final week to cash laundering, including additional context to the state’s case in opposition to the novelty sport firm.

Mechanicsburg Man Pleads Responsible To Tax Evasion@IRS_CI @FBIPhiladelphia @PAStatePolice https://t.co/rk2AV5Q4DY

— U.S. Legal professional MDPA (@MDPAnews) February 3, 2026

Goodling beforehand served as a compliance officer for Atlanta-based Tempo-O-Matic, a serious provider of so-called ability video games. Federal authorities say that from 2019 by means of 2022, he hid taxable earnings by mislabeling money funds from gaming operators as enterprise journey bills. Prosecutors allege these funds have been made in trade for permitting continued use of Tempo-O-Matic machines exterior firm guidelines. The U.S. Legal professional’s Workplace mentioned the conduct resulted in “a tax lack of over $100,000 to the USA.”

Goodling, who’s a retired Pennsylvania State Police corporal, now faces as much as 5 years in federal jail. His case was investigated by the IRS, FBI, and state police. As not too long ago as 2023, Goodling had publicly defended skill games as authorized, arguing they depend on participant potential somewhat than probability.

The circumstances level to a broader push by state and federal authorities to rein in illegal gambling activity. The Pennsylvania Gaming Management Board has additionally elevated enforcement, not too long ago adding 22 people to its involuntary exclusion lists. The people are actually barred from casinos, video gaming terminals, and controlled on-line platforms.

Featured picture: Screenshot from Deibler Brothers Novelty Firm

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