Schuylkill-based Deibler Brothers Novelty Company pleaded guilty on Friday to corrupt organizations, a first-degree felony, according to a release issued by State Attorney General Dave Sunday.
The amusement company has pleaded guilty to a felony charge regarding installment and operation of hundreds of illegal video gambling devices at bars, convenience stores and other locations in numerous counties, the release said.
The company was sentenced in Schuylkill County Court to a term of probation and ordered forfeiture to the state of $3 million in cash and assets.
Deibler Brothers Novelty Company was charged in 2024, following a multi-year investigation which alleged the company installed the machines — typically cloaked in deceptive signage indicating they were legal — in more than a dozen Pennsylvania counties.
The criminal investigation was led by the Pennsylvania State Police, the Pennsylvania Office of Attorney General’s Organized Crime and Asset Forfeiture and Money Laundering sections, and the Bureau of Liquor Control Enforcement into illegal video gambling activities.
“This company was warned time and time again, and continued to snub its nose at state regulations by flooding Pennsylvania counties with illegal gambling machines,” Sunday 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.”
Owners of Deibler Brothers Novelty — 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.
These cases were prosecuted by Senior Deputy Attorney General Erik Olsen and Chief Deputy Attorney General Adrian Shchuka.