PA Company Convicted Over Hundreds of Illegal Gambling Machines

Pennsylvania Attorney General Dave Sunday revealed that the Deibler Brothers Novelty Company, based in Schuylkill County, has pleaded guilty to a serious felony for running and installing hundreds of illegal gambling machines across the state. This guilty plea marks a key victory in the state’s fight against unlawful gambling operations.

The company admitted to operating in violation of state law by installing and maintaining illegal video gambling devices, often disguised as legitimate gaming or “skill” machines, in bars, convenience stores, and other public places across more than a dozen counties. Prosecutors said the actions ignored multiple warnings from state regulators.

Probation and Big Forfeiture Order

The court sentenced Deibler Brothers Novelty Company to probation instead of jail time, but the financial consequences were steep. Judges ordered the company to forfeit $3 million in cash and property to the Commonwealth of Pennsylvania as part of the penalty.

This forfeiture, tied to illegal profits and assets gained through unlawful gambling operations, sends a strong message about the serious financial risks of flouting Pennsylvania’s gaming laws.

Investigation Laid the Groundwork

The criminal probe into Deibler Brothers was led by the Pennsylvania State Police and the Office of Attorney General, including work by the 50th Statewide Investigating Grand Jury. The investigation began years before the February 2026 guilty plea and uncovered how the company spread illegal video gambling devices in Pennsylvania locations.

Officials say the machines were often hidden with deceptive signage suggesting they were lawful gaming devices, when in fact they were illegal under state law. The operation reached across more than a dozen counties, highlighting the wide reach of the unlawful gambling network.

Attorney General Dave Sunday noted that this case was part of a broader effort to crack down on illegal gambling and the messy mix of illicit video gaming in the state. He said Deibler Brothers “snubbed its nose at state regulations” and continued despite repeated warnings.

Key People Linked to the Case

The company’s owners, Arthur Deibler, Donald Deibler, and Joel Ney, were identified as central figures in the illegal gaming scheme. Prosecutors also tied them to Ricky Goodling, a retired Pennsylvania State Police corporal and former compliance director at gaming company Pace-O-Matic.

Goodling recently pleaded guilty to money laundering in a related case connected to the illegal gambling machine network. That separate but linked case shows how complex and interconnected the gambling violations were, involving both operators and insiders tied to larger gaming industry systems.

Official Reaction and Broader Context

Attorney General Sunday said the conviction highlights the state’s commitment to responsible gambling enforcement and the importance of upholding Pennsylvania’s gaming laws. Illegal gambling machines, especially ones masquerading as legitimate devices, pose legal and ethical problems for communities and businesses alike.

This case also comes amid ongoing debates in Pennsylvania around “skill games” and other unregulated video machines. Some gaming devices, like those produced by companies such as Pace-O-Matic, operate in a legal grey zone because they include an element of skill. Lawmakers and courts have disagreed about whether such machines constitute gambling or legal amusement devices.

However, machines that give cash payouts purely by chance, without meaningful player skill, are clearly illegal without state licensure. Prosecutors argue the machines installed by Deibler Brothers fell into this illegal category, even when cloaked in signs claiming otherwise.

Conclusion: The Final Takeaway

The Deibler Brothers Novelty Company conviction and its accompanying $3 million gambling asset forfeiture show that Pennsylvania is serious about tackling illegal gambling. The case reinforces state efforts to separate lawful entertainment from unlawful betting activity, protecting both consumers and legal gaming operators.

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PA Company Convicted Over Hundreds of Illegal Gambling Machines
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Carla has a passion for the online gambling and sports betting industry and loves sharing her knowledge on iGaming content. She thinks outside the box and includes interesting details and information about different iGaming topics. She makes an effort to provide both gamblers and readers with informative, engaging, and easy-to-understand articles.
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PA Company Convicted Over Hundreds of Illegal Gambling Machines
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Amitesh Dhar is the Content Manager and Editor at Times Of Casino - his focus being where the iGaming, online casino and sports betting world is at. Drawing on a few years now of doing the rounds in gaming, esports & digital entertainment at some top outlets, he's got a knack for taking all the frantic happenings in the industry and making them make sense for players and readers. At Times Of Casino he combines a stiff journalistic approach with a down to earth grasp of the inner workings of online gambling and what makes players tick, to come up with reviews, articles and guides that help people cut through the noise and figure out where they stand in the ever-shifting online gaming and betting world.
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