Gambling Addict Who Embezzled $533K From Pennsylvania Town Sentenced to Prison
Posted on: September 17, 2025, 04:30h.
Last updated on: September 17, 2025, 04:31h.
- A former township official has been sentenced to prison for theft
- The secretary and treasurer admitted to stealing to fund her gambling addiction
A Pennsylvania woman will spend at least the next two years in state prison after she admitted to stealing almost $533,000 from Gregg Township while she worked for the local municipality as its secretary and treasurer.
Centre County Judge Katie Oliver sentenced Pamela Hackenburg, 56, of Union County, to the maximum of four years in prison, followed by two years of probation. She will be eligible for parole after serving 24 months.
Hackenberg admitted to using her job to embezzle at least $532,747.67 from the small township that is home to a little more than 2,300 people. She said she is a gambling addict and funded her habit by stealing from her employer.
“She didn’t just steal from the employees of Gregg Township. She stole from each and every taxpayer of Gregg Township,” said Centre County Deputy District Attorney Crystal Hundt.
DraftKings Expenditures
Prosecutors detailed that law enforcement’s investigation into Hackenburg found that she made $322,185 in transactions on her DraftKings account. DraftKings offers both online sports betting and casino games in Pennsylvania.
The money trail also included evidence that Hackenburg used the stolen money to cover other personal expenses, including purchases at wine and spirits stores, nail salons, and a vacation in Florida. Hackenburg pleaded guilty to theft, identity theft, and access device fraud.
Prosecutors detailed that the then-secretary and treasurer of Gregg Township had full control of the municipality’s finances. The theft began just two months after Hackenburg was hired in March 2019 and continued until she was put on unpaid leave amid the investigation in March 2024. She was fired in December.
The town’s supervisors had minimal oversight over the secretary-treasurer and failed to notice that funds were disappearing. The theft was uncovered when a bank statement she would usually open was opened by another township employee.
A subsequent audit exposed what tax preparer Rhonda Sweely said “looked like a tornado blew through.”
The audit revealed that Hackenburg used the township’s credit cards more than 3,600 times for personal expenses, including for her DraftKings account.
Restitution Unlikely
Along with her prison time, Oliver ordered Hackenburg to pay $615,580.78 in restitution to the township. She says she doesn’t have the money, but is “committed to making diligent efforts to repay the amounts taken.”
Hackenburg told the court that she’s a Christian, but that “doesn’t mean I don’t make mistakes.”
It was never my intention to hurt you all,” she told Gregg Township residents. “I pray some of you might find it in your hearts to forgive me.”
Gregg officials say the township is now struggling to secure loans to complete critical road repairs.
Once Hackenburg is released from prison, a casino will likely be up and running in State College, near Penn State University. Her Union County home is less than 50 miles east of where the Happy Valley Casino will operate.
The Pennsylvania Gaming Control Board’s online listing of Involuntary Excluded persons from the state’s physical casinos does not include Hackenburg. Her iGaming access has also not been revoked, though operators may choose not to accept her business.
She says she’s working to overcome her addiction by attending Gamblers Anonymous meetings.
Last Comments ( 5 )
What a loser! Living the high life on the People’s money. Probably fat slob, 2 years isn’t enough. Gambler’s anonymous, now she can gamble under a different name.
Here in NY there are strict yearly limits on credit card deposits to betting accounts. I believe Caesars limits me to 2500 per year. That would have prevented much of this from happening. Debit cards are different however. Article does not go into not specifics of her deposits.
The article carefully omits any mention of the "Gregg Township Insurance Bond." Look online for exactly those four words. Far more significantly, there is a precedent for possible restitution from DraftKings itself that has been overlooked. Look online for exactly these four words -- "DraftKings Husband and Father."
All details above are accurate except for the last sentence.
What about the "Know Your Customer" laws? Did DraftKings ever ask Ms. Hackenburg how she was able to afford spending $20,000 per month on gambling while working as a civil servant? Did they ever ask whether she had permission to pay for her gambling using a government credit card? Why is DraftKings allowed to keep all of the stolen property that they received as a result of Ms. Hackenburg's actions without any accountability whatsoever, while the township's insurer and its taxpayers are still on the hook to repay everything that Ms. Hackenburg cannot repay out of her own resources?