Two NJ Casino Operators Violate State Gaming Regulations

Summary: Caesars Entertainment Corp. and the Golden Nugget have been penalized by the New Jersey Division of Gaming Enforcement for taking wagers that involved teams from the state.

Gaming operators in New Jersey have to follow strict regulations when it comes to the real money betting options they offer. Regarding sports betting, casinos are not allowed to offer wagers that involve college teams in the state. Two casinos operators in Atlantic City recently got in trouble for accepting wagers on college games involving teams in the region.

Illegal Sports Bets

Golden NuggetThe Golden Nugget and Caesars Entertainment Corp. were charged with accepting wagers back in September on games involving teams of New Jersey. The regulations involving sports betting in the state prohibit college teams in New Jersey or games involving a college team that take place in a venue within the state from being wagered on.

Caesars Entertainment Corp. was fined $2,000 for accepting wagers on a game that took place on September 10th involving the Kansas Jayhawks and the Rutgers Scarlet Knights. The company was alerted of the violation back in November and were reviewed earlier their month with an assessment of the civil penalty.

The Golden Nugget, the second operator involved in the illegal wagering issue, were forced to forfeit a small amount of $390 from wagers placed by ten players on various college football games in the state, also taking place in September. The Division of Gaming Enforcement revealed that the wagers were cancelled by the casino when they were found out, but the money could not be returned to the players because their identity is unknown.

Division of Gaming Enforcement Spokesperson, Kerry Langan, commented on the incidents by stating: “Prohibited sporting events were posted, and wagers were placed on those events. All improperly posted bets were voided and if the gamblers were known, those funds were returned to them.”

“The casino licensees are required to have internal controls in place to prevent prohibited games from being posted for wagering. When these controls fail, there are regulatory sanctions.”

The Golden Nugget must follow the college regulations as do the other sports betting operators in the state. The Golden Nugget does have an additional prohibition since the property is owned by Tilman Fertitta. Mr. Fertitta owns the Houston Rockets NBA team, so the Golden Nugget is not allowed to offer wagers on professional basketball games.

Following Regulations

All operators in New Jersey must follow the regulations set by the Division of Gaming Enforcement, and those who do not, will be subject to some form of punishment, usually a fine. The two gaming operators in this instance got off relatively scot free. In the past, regulators have had to pay tens of thousands of dollars when violating such regulations as underage gaming or allowing a restricted player to access real money games.

For sports betting operators, changes will have to made in training of employees as well as ensuring all wagers that are offered are meeting the state’s requirements. By catching any issues early, operators can avoid heavy fines or other punishment. The DGE does have the right to remove licensing, but a violation by an operator would have to be pretty severe in order to see the group remove a gaming license.

Many sportsbooks in New Jersey are temporary as the venues are create permanent sports for wagering. As the permanent facilities are created and services are launched, training will help to ensure that such instances of illegal wagering do not happen again.