A casino in Nevada is going to have to pay monetary damages to the Nevada Gaming Control Board for operating online gaming illegal in the state.
Nevada is one of only four states that currently has legislation in place to offer online gambling. Unlike Delaware, New Jersey and Pennsylvania, Nevada has chosen to only offer online poker gaming. Operators must obtain licensing to offer online poker games in the state and so far, only a handful of operators have been approved and are offering services. The Nevada Gaming Control Board recently announced that a claim has been filed against a casino operator, for illegally offering online gaming. Boomtown, a gaming venue in Reno, is the casino listed in the complaint.
A complaint has been filed against the Reno casino from actions they took back in 2016. Reportedly, the casino faces two violations of state law plus having been in violation of the Wire Act. The board is seeking monetary damages but how much is unclear. The gaming license of the company is also at risk, but they are currently able to continue offering services.
So, what did Boomtown do? The operator does not have licensing for online gaming but make decisions to add free-play gaming to their website back in 2016. Once they found that adding the technology to offer such games would be expensive, they looked for ways to link to other sites.
Within the complaint, it states that the website of Boomtown was linked to 15 different casino sites. Of that number, 11 of the casino sites were located in Curacao and allowed players to wager with gaming for real money. Contracts existed with Deck Media and Affiliate Edge with Boomtown. Each of the companies are located in Curacao and are licensed to offer real money gaming.
The 11 casino gaming sites were linked back to Boomtown and they claim that players in the US can take part. The sites even have flags of the United States placed on the main pages, which make players think they can legally gamble at these sites.
Boomtown was set up to earn commissions based on the players they referred. The company managed to earn only just over $1,600, being paid via Evo Advertising, Inc. This small payment is nothing compared to the amount of money the company will most likely have to pay the board for breaking the rules.
How the Board Found Out
Boomtown seemingly got away with their actions for some time until the illegal activity caught up with them. In March of last year, the Control Board was questioned as to the legality of the links found at Boomtown. In just five months, the officials of the Board had contacted Boomtown to let the casino know there were in violation based on the setup of their site.
Representatives of the casino stated that only one employee in the company managed the links found at the site. This individual was an art designer and in charge of the graphics who reportedly had limited understanding of gaming laws.
In the complaint, it states that the casino operator filed to maintain a sufficient level of supervision and control of their employee as well as website. The complaint also says that Boomtown did not inquire on the nature of the links at the website and received payment due to the links.
It may be some time before the monetary damage amount is set for Boomtown. The Gaming Board may decide to make an example out of the company and the fine may be a high amount. Only time will tell what Boomtown will have to pay based on the violations.