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A gaming lounge in Berks County was actually an illegal casino with video slot machines and has been shut down following a raid, prosecutors announced Friday.
Windfall Amusements’ 777 lounge in the Kenhorst Plaza shopping center and a home in Exeter Township were raided Thursday morning as part of the investigation into unlawful operation of illegal video gambling devices that began in February, Berks County District Attorney John Adams said.
State police seized $67,760 in cash and 57 machines at the 777 casino. The business did not allow patrons under the age of 21, and cash payouts were made by the operators, Adams said.
“They were not a skill game. They were a gambling device,” Adams said, adding investigators believe most, it not all, of the machines have characteristics unique to gambling devices and are illegal.
Efforts to reach officials with Windfall Amusements were unsuccessful.
WFMZ reported that following Thursday’s raid, people could still be seen trying to go inside the business.
Two people were at the Exeter home, Adams said. They have not been charged. Adams said he expected charges will be filed in the future based on Thursday’s raid, but did not elaborate.
“They are definitely involved in some fashion with Windfall Amusements. We do not know their particular role with the company,” Adams said, adding prosecutors are still investigating.
State police said they believe the casino was operating since December. The business received approval from Kenhorst council in July 2019 to operate 60 machines, according to the Reading Eagle.
Adams noted a Reading Eagle article from February that Windfall Amusements was seeking approval to add 30 more single-chair video skill machines. That same month, state police began their investigation based on anonymous complaint, he said.
“It was advertised on Facebook as a casino” and was identified in a news report as a casino, Adams said.
The investigation was suspended for a period of time due to the COVID-19 pandemic. Investigators found
Windfall Amusements had no gaming license and paid nothing to operate what investigators determined was an illicit casino, Adams said. Penn National Gaming paid more than $7.5 million for its gaming license for a casino in nearby Morgantown, he added.
The state receives a percentage of slot machine revenue from licensed casinos, but it was not receiving any revenue from Windfall Amusements, prosecutors said.
“These type of operations around the state have to be closed, as the state receives no benefit whatsoever,” Adams said. “At the time that we need monies to operate governmental functions, it is very important that, if we’re involved in gambling, that they be through the licensed casino which creates revenue for the state of Pennsylvania. No monies were received by the state for these machines.”
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Sarah Cassi may be reached atscassi@lehighvalleylive.com.
HARRISBURG, Pa. (AP) — Top Republicans in Pennsylvania’s state Senate are pressing sweeping gambling legislation that would allow slot machine-like terminals in thousands of bars, restaurants, nonprofit social clubs and other businesses that hold liquor licenses.
The legislation could deliver new gambling tax dollars to a state treasury hurting from stay-at-home and shutdown orders issued by Gov. Tom Wolf to fight the spread of the coronavirus.
It also seeks to banish thousands of unregulated cash-paying “skill” game terminals from a wide array of establishments in Pennsylvania, including laundromats, pizza parlors, grocery stores, corner stores and bowling alleys, that do not have liquor licenses.
No Senate vote had been scheduled as of Tuesday as Senate Republican leaders worked to build enough support for it to pass. The bill is opposed by two erstwhile adversaries: casino owners in the nation’s No. 2 commercial casino state and Georgia-based Pace-O-Matic, maker of the software in most common skill terminals, marketed as Pennsylvania Skill games.
Wolf, a Democrat, is taking a dim view of it, warning in a statement from his office that state programs already fed by a “multitude” of legal gambling options, from slot machines in casinos to online lottery games, could lose dollars. He opposes the bill in its current form, his office said Tuesday.
Under a draft amendment, more than 10,000 bars, restaurants, hotels, golf course clubhouses and nonprofit social clubs with liquor licenses could install the so-called video gaming terminals, or VGTs. Counties that host casinos and municipalities could still vote to keep the machines out.
Senate Majority Leader Jake Corman, R-Centre, framed the bill not necessarily as an expansion of gambling, but as a way to get forms of unregulated gambling under control.
“The overall goal is to bring into the light the tens of thousands of unregulated games of skill and VGT devices that are out there in Pennsylvania today,” Corman said Tuesday.
Senate Republican budget analysts projected that taxing the VGTs could yield $200 million to $250 million a year, Corman said.
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A major trade association for bars and restaurants, the Pennsylvania Licensed Beverage and Tavern Association, is asking its members to contact senators to support it.
The bill comes as distributors of VGTs — including executives from Golden Entertainment Inc. of Las Vegas — and Pennsylvania Skill games are giving tens of thousands of dollars in campaign contributions to lawmakers and political organizations.
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A political action committee backed by a Williamsport-based coin-op machine distributor, Miele Manufacturing, which assembles Pennsylvania Skill games, has given more than $100,000 to lawmakers and political committees going back to last year.
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Wolf, at least, might be sympathetic to banishing the skill games: His administration has accused the proliferating skill machines of siphoning more than $200 million in revenue last year from the Pennsylvania Lottery.
While the bill might leave legal room for Pace-O-Matic games in licensed-liquor establishments, the company sees it as a death knell.
“We can’t compete with them,” spokesman Michael Barley said. “Their games are flashier, more appealing. They look like things you would find in a brick-and-mortar casino. … Our games are slower, more methodical.”
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