Caesars Entertainment fined Atlantic City $50,000 for regulatory breaches

Posted on: July 27, 2022, 03:51h.

Last update: July 27, 2022, 4:08 a.m.

Caesars Entertainment was fined $50,000 by New Jersey’s Division of Gaming Enforcement (DGE) for numerous repeated regulatory violations.

CEO fine at Caesars Entertainment Atlantic City Casino
Caesar Atlantic City. Caesars Entertainment has agreed to pay $50,000 to New Jersey’s Division of Gaming Enforcement for failing to properly register casino employees as required by state law. (Image: PA)

The DGE regulates the nine casinos in Atlantic City. He says the penalty stems from Caesars failing to properly register and authorize key employees over a period of more than a year. CEO David Rebuck informed the Las Vegas-based casino operator of the decision in a letter dated July 7, 2022. He said the company’s inability to obtain casino licenses for 49 employees who were required by state law to obtain such permits warrants punishment. .

Caesars itself reported initial regulatory shortcomings in May 2021. Since then, the casino operator has told the state that it has discovered other employees who should have been registered with the DGE and who do not were not.

The New Jersey Casino Control Act requires certain casino employees to register with the CEO. The gaming regulator performs background checks and other investigations on these individuals to ensure that the state gaming industry remains free of malicious actors.

Caesars operates three Atlantic City casinos: Caesars, Harrah’s and Tropicana.

Surprising shortcomings

Atlantic City casinos have been required to register key employees with the state since gambling became legal in New Jersey. And that’s why it’s completely unexpected that a company as experienced and large as Caesars Entertainment should be found to be non-compliant.

Caesars first informed the CEO on May 3, 2021 that it realized that seven of its information technology (IT) employees had been on its payroll with inactive casino employee registrations. The company told the game agency it would survey its other departments to ensure compliance. But that review revealed dozens of additional employees who were supposed to be registered with the DGE, but were not.

The CEO initially said he would not penalize Caesars since the company self-reported the regulatory violations and resolved the issue in a timely manner. But after Caesars admitted to other employee check-in failures, Rebuck chose to take action.

Caesars provided the Division with several reports that revealed other issues regarding the lack of necessary records of casino employees,” Rebuck explained. “As of November 2021, Caesars appeared to have approximately 49 employees who were not properly credentialed due to either no casino employee registrations or casino employee registrations being held inactive.

Caesars told the state that some of the check-in failures were due to temporary furloughs caused by the pandemic.

Caesars accepts a fine

Because Caesars Entertainment failed to properly register its casino employees, the CEO found that the company also violated state law requiring every licensed gaming property to submit accurate monthly employee reports.

Rebuck explains that Caesars accepted the fine of $50,000 for regulatory deficiencies.

“Caesars has agreed to pay this amount in recognition of the seriousness of its non-compliance deficiencies,” Rebuck concluded.

Rebuck ended by explaining that other Caesars employees found unregistered would subject the casino company to further monetary penalties.