Former Pace-O-Matic Executive Pleads Guilty to Money Laundering in Major Blow to Skill Games Industry
A former high-ranking executive at Pace-O-Matic (POM), the Georgia-based company behind the ubiquitous “Pennsylvania Skill” gaming terminals, has pleaded guilty to state money laundering charges and federal tax fraud. Ricky Goodling, 59, of Mechanicsburg, entered the plea Tuesday in Cumberland County Court, admitting to a scheme involving hundreds of thousands of dollars in kickbacks from illegal gambling operators.
Goodling, a retired Pennsylvania State Police corporal who served as POM’s national director of compliance, admitted to accepting bribes from skill game distributors and operators. In exchange for the payments, Goodling allowed these operators to bypass the company’s internal regulations, often ignoring the presence of illegal slot machines operating alongside POM’s terminals. According to prosecutors, he laundered the illicit proceeds through a sham consulting company he established under the name “Rest and Relaxation, LLC,” falsely characterizing the bribes as business travel expenses to evade taxes.
Pennsylvania Attorney General Dave Sunday, whose office prosecuted the state charges, condemned the actions as a betrayal of public trust and corporate responsibility. “The defendant pleaded guilty to a very serious charge and took accountability for his conduct, which was fueled by personal greed,” Sunday said in a statement. “His actions contributed to the disorganized and problematic environment in which these games exist in the Commonwealth.”
The guilty plea comes at a sensitive time for the skill games industry, which is currently engaged in a fierce legislative and legal battle for survival in Pennsylvania. Pace-O-Matic has long argued that its terminals are games of skill—distinct from the luck-based slot machines found in casinos—and therefore legal under state law. The company frequently highlights its compliance division, which Goodling led, as evidence of its commitment to self-regulation and adherence to the law.
Following the plea, Pace-O-Matic moved quickly to distance itself from its former director. The company issued a statement expressing that it was “deeply troubled” by Goodling’s actions, emphasizing that he acted alone and without the company’s knowledge. “Upon first learning of an investigation into Mr. Goodling’s actions in November 2023, Pace-O-Matic immediately severed his employment,” the company stated, noting that law enforcement has assured them the company itself is not a target of the investigation.
However, critics of the “gray market” gaming industry are likely to seize on this conviction as proof that the sector lacks necessary oversight. Casino operators and state regulators have long contended that skill games attract criminal activity and siphon revenue from the state lottery and licensed casinos. Governor Josh Shapiro has recently proposed a 42% tax on skill games, a move the industry opposes, arguing it would crush the small businesses, veterans’ clubs, and bars that rely on the revenue.
Goodling pleaded guilty to a first-degree felony count of dealing in proceeds of unlawful activities in state court and a separate federal charge of conspiracy to defraud the United States. He is scheduled for sentencing in Cumberland County on April 28.
igamingtoday.com
iheart.com
casino.org
newsfromthestates.com
fox43.com
