Deibler Brothers Plead Guilty to Felony, Ordered to Forfeit $3M in Illegal Video Gambling Case
Key Highlights
- The Plea: Deibler Brothers Novelty Company pleaded guilty to corrupt organizations, a first-degree felony, for operating hundreds of illegal machines across 15 counties.
- The Penalty: A judge ordered the forfeiture of $3 million in cash and assets to the Commonwealth, alongside a sentence of probation.
- The Connection: The case is linked to Ricky Goodling, a former State Police corporal and Pace-O-Matic executive who recently pleaded guilty to money laundering and tax evasion.
- Industry Impact: This is the second major conviction in a week, signaling an aggressive “zero-tolerance” shift against unlicensed “gray market” operators.
Pennsylvania authorities secured a major enforcement victory after Schuylkill County–based Deibler Brothers Novelty Company pleaded guilty to corrupt organizations, a first-degree felony, for installing and operating hundreds of illegal video gambling devices across more than a dozen counties.
A judge sentenced the company to probation and ordered the forfeiture of $3 million in cash and assets to the Commonwealth.
Multi-Year Investigation Uncovers Illegal Gambling Devices
The charges stemmed from a 2024 investigation by the Pennsylvania State Police and the Office of Attorney General, which included a presentment from the 50th Statewide Investigating Grand Jury.
According to court filings, the machines were placed in bars, convenience stores, and other locations, often cloaked in deceptive signage suggesting they were legal.
Attorney General Dave Sunday emphasized that the company had been repeatedly warned to cease operations but continued to operate its illegal devices. He 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.
Connections to Ricky Goodling
The 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, who pleaded guilty last week to money laundering.
The charges resulted from a multi-year criminal investigation involving the Pennsylvania State Police, the Office of Attorney General’s Organized Crime, Asset Forfeiture, and Money Laundering sections, and the Bureau of Liquor Control Enforcement. The case was prosecuted by Senior Deputy Attorney General Erik Olsen and Chief Deputy Attorney General Adrian Shchuka.
Implications for Pennsylvania’s Gray Market
The crackdown on Deibler Brothers is part of a broader, statewide offensive. In May 2025, the Attorney General’s office seized 400 machines in a similar sting against Buffalo Skill Games and J.J. Amusement, both owned by convicted illegal gambler John F. Conley.
As the state’s Supreme Court continues to weigh the legal status of “skill games,” the Office of the Attorney General is increasingly targeting the “disorganized” fringe of the market.
Beyond the legalities, industry stakeholders are also pointing to the social cost. Gamblers Anonymous recently reported a surge in new members identifying skill games as the primary driver of their addiction.
This conviction demonstrates Pennsylvania’s heightened enforcement against unlicensed operators in the video gaming “gray market,” reinforcing the state’s zero-tolerance stance.
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