Pennsylvania Skill, powered by Pace-O-Matic, files federal lawsuit against BMM Testlabs for improperly accessing their patented and confidential technology

Duluth, Georgia, April 06, 2023 (GLOBE NEWSWIRE) -- Today, Pace-O-Matic (POM) announced the filing of a federal lawsuit against BMM Testlabs (BMM), Peter Nikiper, and “John Does”(those affiliated with the casino gaming industry) for improperly accessing their patented and proprietary technology. Click here to read the complaint.

BMM, without legal authorization or the permission of POM, accessed our confidential and patented technology and conducted an unauthorized inspection and forensic examination of our game. In their efforts, they made copies of hard drives and attempted to decrypt security codes to access our confidential and proprietary information. Making this matter more concerning, BMM is completely aligned with the American Gaming Association (AGA), and the big casino industry in public campaigns against skill games and Pace-O-Matic nationally 

“BMM knowingly and wrongfully attempted to hack our patented technology,” said Mike Barley, Pace-O-Matic’s Chief Public Affairs Officer. “BMM has totally and completely aligned themselves with AGA and big casinos campaign against the legal skill game industry and Pace-O-Matic. While we don’t mind having an argument based on the facts regarding skill games and the record profits the casino industry has earned, attempting to steal our proprietary technology.”

Peter Nikiper, BMM’s Director of Technical Compliance, wrote a report and appeared as a witness for the Commonwealth in POM’s return of property case in Dauphin County. Recently, the Dauphin County Court of Common Pleas issued a ruling which orders the return of POM’s skill games, rules POM is operating skill games, and alleges “bias” against Mr. Nikiper and the other witnesses the Commonwealth put forth. Click here to read the Dauphin County ruling. 

In the opinion, Dauphin County Common Pleas Judge Andrew Dowling wrote, “All three of the Commonwealth witnesses opined that the games were predominantly games of chance. However, we do not find these opinions to be persuasive for a number of reasons. Initially, it is this Court’s belief that the Commonwealth’s investigation shows case bias. The Commonwealth is seeking to make all machines like the POM Machines into illegal gambling devices, and their whole approach and intent is to shut down games regardless of the actual gameplay. The fact that Officer Wentsler never played the Follow Me feature while undercover is indicative of this. Thus, the Commonwealth as a whole is biased against the games, and their approach lacks case credibility.”

This was the second court in as many months to rule our games were legal games of skill and alleged misconduct in the investigation and prosecution of our games. Click here to read the Monroe County order.

Last month, Monroe County Common Pleas Judge Jennifer Harlacher Sibum wrote, “The court finds that the Commonwealth improperly withheld and misrepresented material evidence relative to the issuance of the search warrant in this matter, and that such conduct warrants the suppression of the seized property."  

Pennsylvania Skill has pumped new life into the commonwealth’s small businesses, fraternal and social clubs and veterans organizations by providing them with an entertainment product that the public enjoys. Meanwhile, research data proves skill games do not impact the revenue of casinos and the lottery, both of which are achieving record profits year after year. 

Pennsylvania Skill games are manufactured in the commonwealth, and over 90% of the profits stay inside the state. That is unheard of in gaming and many other industries. Pace-O-Matic is proud of its record and looks forward to continuing to benefit Pennsylvania businesses, clubs, and taxpayers now and in the future.

As part of ongoing efforts to ensure compliance, Pace-O-Matic employs a team of former state police officers to enforce all terms of contracts and codes of conduct. These contracted terms limit the number of machines, where they are placed in a location and have protections in place to prevent anyone underage from playing the devices.

In 2014, the Beaver County Court of Common Pleas ruled that Pace-O-Matic's Pennsylvania Skill games are legal as games of predominant skill. Click here to read that court decision. Last year, the Pennsylvania Office of the Attorney General and the Clearfield County District Attorney’s office negotiated a settlement to return wrongfully seized Pennsylvania Skill games, related equipment and cash. Click here to read that order. Pace-O-Matic saw an additional county return Pennsylvania Skill games after these court decisions and settlements were reached.

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