Gaming Control Board Levies Fines For Free Slots Play Violations At Two Casinos

HARRISBURG, PA:  The Pennsylvania Gaming Control Board (PGCB) today fined Mount Airy #1, LLC, operator of Mount Airy Casino Resort and SugarHouse HSP Gaming, L.P, operator of Rivers Casino Philadelphia for violations related to the issuance of complimentary free slot machine play.

The fines, totaling $135,000, were the result of Board approval at its public meeting 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 build and reward patron loyalty and drive repeat visits of customers who might otherwise patronize a casino outside of the Commonwealth. Casinos must, however, submit to and gain authorization from the Board of a “Comp Matrix” which outlines who can issue complimentary free slot play and the maximum dollars that each employee is authorized to issue, and then adhere to the plan.

The fine of $90,000 against Mount Airy #1, LLC stemmed from an investigation by the PGCB’s Bureau of Investigations and Enforcement (BIE) on the authorization and issuance of discretionary free slot play. The investigation revealed that discretionary free slot play was issued by employees in amounts in excess of amounts that were 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 crime.

The approved fine for SugarHouse HSP Gaming, L.P. was $45,000 and was the result of a similar investigation at Rivers Casino Philadelphia by BIE into the issuance of discretionary free slot play.  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.

The next meeting of the Pennsylvania Gaming Control Board is scheduled for 10:00 a.m., Wednesday, November 18, 2020. The Board will announce prior to that date whether the meeting will be held online or in the PGCB’s Public Hearing Room located on the second floor of the Strawberry Square Complex in Harrisburg.

About the Pennsylvania Gaming Control Board

The Pennsylvania Gaming Control Board is tasked to oversee all aspects of gambling legalized under 2004’s Race Horse Development and Gaming Act and the Gaming Expansion Act of 2017. In addition to slot machine and table games gambling at land-based casinos, the expansion includes online casino games available to date on 12 sites; sports wagering offered through sportsbooks at 12 retail locations and through nine online outlets; video gaming terminals (VGTs) offered as of this date at 37 qualified truck stops; and, fantasy sports contests through six providers.

The mature land-based casino industry in Pennsylvania currently consists of 10 stand-alone and racetrack casinos in operation, along with the two smaller resort casinos.  These facilities collectively employ over 16,000 people and, along with other types of Board-regulated gaming, annually generate over $1.5 billion in tax revenue. Construction of a 13th casino is currently underway along with a number of new “mini-casinos” expected to begin operation over the next couple of years.

Additional information about both the PGCB’s gaming regulatory efforts and Pennsylvania’s gaming industry can be found at https://gamingcontrolboard.pa.gov/ . You can also follow the agency on Twitter by choosing @PAGamingControl.