HARRISBURG, PA — A central Pennsylvania amusement company pleaded guilty to a first-degree felony after authorities uncovered a sweeping illegal gambling operation that placed hundreds of unlawful video gaming machines in bars, convenience stores, and other locations across the state.
Attorney General Dave Sunday announced that Schuylkill County-based Deibler Brothers Novelty Company admitted guilt Friday to a charge of corrupt organizations stemming from the installation and operation of illegal video gambling devices in more than a dozen Pennsylvania counties. A Schuylkill County Court of Common Pleas judge sentenced the company to probation and ordered the forfeiture of $3 million in cash and assets to the Commonwealth.
The case grew out of a multi-year investigation launched in 2024 by the Pennsylvania State Police and the Office of Attorney General, aided by a presentment from the 50th Statewide Investigating Grand Jury. Investigators determined that the company deployed the machines despite repeated warnings, often disguising them with misleading signage to suggest they were legal.
“This company was warned time and time again, and continued to snub its nose at state regulations by flooding Pennsylvania counties with illegal gambling machines,” Sunday said. “This plea resolution secures a substantial forfeiture of assets to the Commonwealth, and is the second conviction in recent days against offenders contributing to the disorganized environment of illegal video gaming in Pennsylvania.”
Authorities said the company’s owners — Arthur Deibler, Donald Deibler, and Joel Ney — were affiliated with Ricky Goodling, a retired Pennsylvania State Police corporal and former director of national compliance for Pace-O-Matic. Goodling pleaded guilty last week to money laundering in a related case.
The investigation was led by the Pennsylvania State Police in coordination with the Attorney General’s Organized Crime and Asset Forfeiture and Money Laundering sections, along with the Bureau of Liquor Control Enforcement. Prosecutors said the coordinated effort targeted the proliferation of illegal video gambling devices operating outside Pennsylvania’s regulated gaming framework.
The case was prosecuted by Senior Deputy Attorney General Erik Olsen and Chief Deputy Attorney General Adrian Shchuka.
Authorities emphasized that enforcement actions against illegal video gaming operations remain ongoing as the state continues to crack down on unregulated gambling activity.
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