JOHNSTOWN, Pa. (WJAC) — At a press conference outside one of his local gaming parlors, the owner of 3C Amusements shook his head and laughed as a game of skill manufacturer announced their reasoning for filing a lawsuit against the business over what they say is 3C's use of machines that have been ruled by a Cambria County judge to be a gambling device.
The nuisance lawsuit is being filed by Pace-O-Matic, the maker of 'Pennsylvania Skill' machines, which has produced 12,000 devices used by local bars, restaurants, and clubs to play games that lawmakers are working to ban once and for all. 3C owns parlors in Lower Yoder Township, where the announcement was made, as well as in Richland Township and a new location in Vinco.
Pennsylvania Skill representatives say 3C uses machines made by Gracie Technologies. Gracie's machines were ruled in April to be gambling devices in a lawsuit seeking to reverse the seizure of machines being used by the Fraternal Order of Eagles Comemaugh Aerie No. 1811 by the state.
"There are many many bad actors out there that are using casino-type slot machines to make money that don't pay off like our machine does and many of them are not paying taxes," said Tom Marino, Pennsylvania Skill's Vice President of Government Affairs, Public Relations, and Counsel. "We want to send out a notice that we are going to report you."
Pennsylvania Skill machines were ruled to not be considered illegal gambling devices by courts in the state. They contend their machines are entirely based on skill, using side games away from the main game of knowing which patterns can net you the most points, while the Gracie machines have pre-determined outcomes and also allow you to walk away with a nominal prize if you don't have winning patterns.
"If you bet $1 and it throws you a losing combination except to win a penny, that's a 99 cent loss," said Rick Goodling, Compliance Supervisor for Pace-O-Matic. "That's not a win."
Steve Csehoski, the owner of 3C Amusements, watched the spectacle outside his business with apparent amusement. He said after it was over he would not comment on the lawsuit on the advice of his legal counsel.
Csehoski told 6 News in June his machines are within the law, that he pays taxes on all that he takes in, and hands out forms to big winners to ensure they too pay taxes.
Pennsylvania Skill representatives say the lawsuit will be formally filed on Friday.
Critics in Pennsylvania say the games of skill devices were always meant to be illegal. The state lottery says the games have cost them tens of millions of dollars in lost revenue.
The 'Pennsylvania Skill' machines have come under intense scrutiny themselves. Opponents argue the official-sounding name gives a false sense that they are state-run and state-approved equipment.
Marino, a former congressman from Williamsport, said his company is working with state lawmakers to find ways to regulate games of skill machines. A bill proposed in June to make them illegal gambling devices was formally introduced Tuesday in the Pennsylvania Senate and was referred to the judiciary committee.
"There's going to be enough business out there for anyone who wants to get into the business," Morino said. "If they are legitimate and doing what they should be doing."
The decision against Gracie Technologies is being appealed.
EDITOR'S NOTE: This story was updated to better reflect that the lawsuit will be formally filed on Friday.
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