Two Pennsylvania casinos fined for free play violations

October 28, 2020 5:48 PM
  • CDC Gaming Reports
October 28, 2020 5:48 PM
  • CDC Gaming Reports

The Pennsylvania Gaming Control Board (PGCB) today fined Mount Airy Casino Resort and Rivers Casino Philadelphia for violations related to the issuance of complimentary slot machine free play.

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The fines totaled $135,000, the result of consent agreements between the PGCB’s Office of Enforcement Counsel and the two casino operators.

Complimentary free slot play is widely offered by all casinos in Pennsylvania as a marketing tool to reward patron loyalty and drive repeat visits of customers. Casinos must, however, submit to and gain authorization from the PGCB of a “Comp Matrix,” which outlines who can issue complimentary free slot play and the maximum dollars that each employee is authorized to issue, then adhere to the plan.

The fine of $90,000 against Mount Airy stemmed from an investigation by the PGCB’s Bureau of Investigations and Enforcement (BIE), revealing that discretionary free play was issued by employees in amounts in excess of those authorized through the Comp Matrix. In this case, the investigation showed that Mount Airy did not adhere to its internal controls, leading to 491 instances where employees issued discretionary free slot play exceeding the authorized limit and totaling $262,500, including the alleged theft of $140,000 by one employee. That employee was later charged with a felony .

The $45,000 fine for SugarHouse HSP Gaming was the result of a similar investigation at Rivers Casino Philadelphia by BIE. In this matter, BIE found 405 instances in which discretionary free slot play was issued by employees in amounts in excess of amounts that were authorized through the Comp Matrix resulting in $25,562 in free slot play. BIE’s investigation also found that Rivers Casino Philadelphia did not adhere to procedures for free slot play and its internal controls for the issuance of complimentary free slot play.