The New Jersey Division of Gaming Enforcement (NJDGE) levied a $50,000 fine against Caesars Entertainment for ongoing issues with ensuring its casino employees have the proper registration with the state.
In a letter dated July 7, NJDGE Director David Rebuck said Caesars had violated the state’s Casino Control Act “by employing, for a number of years, approximately 49 individuals in numerous positions throughout various departments — including in the areas of information technology (IT), marketing, human resources, and credit — without such employees holding the requisite casino employee registrations.”
Caesars Entertainment owns and operates three casinos in New Jersey — Caesars Atlantic City, Harrah’s Resort Atlantic City, and Tropicana Atlantic City.
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Issues Date Back to February 2021
While the NJDGE gave kudos to Caesars for self-reporting issues with employees lacking the proper registration, Rebuck’s letter also paints a disturbing picture — namely that Caesars has been having trouble keeping tabs on employees’ registration matters for more than a year. The fact that the problems have continued likely triggered the $50,000 fine.
According to Rebuck, Caesars told the NJDGE on February 25, 2021, that it had about 60 workers classified as Casino Hotel Alcoholic Beverage (CHAB) employees working without proper employee registrations. Caesars quickly moved to get their workers registered and notified the regulator that they had done so by March 31, 2021.
“In recognition of the prompt correction of the failure to obtain credentials, no regulatory action had been taken in connection with the CHAB employee situation,” Rebuck wrote.
But Caesars self-reported again on May 3, 2021, that seven of its IT employees — including two senior systems analysts, one IT manager, one senior programmer analyst, two lead systems analysts, and one lead programmer analyst — working with inactive registrations. The operator said it would conduct an audit to uncover any additional inactive registrations and would report them to the NJDGE.
It did. And by November 2021, Caesars told the regulator that it had about 49 employees without proper credentials because they either held inactive employee registrations or none at all.
NJDGE gave Caesars a January 10, 2022, deadline to get the 49 employees registered. Further review by the regulator found that prior leaves of absence, resignations, and terminations had whittled the number of employees needing to be registered down to 37. The deadline was extended several times before all 37 employees were adequately registered, as of February 4, 2022.
“Caesars will need to further address the proper registration of any employees who may be re-hired or return from leaves of absence, as applicable,” Rebuck wrote.
Noteworthy Fines Issued Recently by North American Regulators
| Month | State/Prov. | Regulator | Operator | Fine | Violation(s) |
|---|---|---|---|---|---|
| Oct. 2021 | New Jersey | NJDGE | BetMGM | $25,000 | In-state college wagers |
| Nov. 2021 | Pennsylvania | PGCB | Various1 | $150,000 | Wagers by self-excluded individuals, underage patrons, COVID-19 safety protocols, theft |
| Dec. 2021 | New Jersey | NJDGE | DraftKings | $150,000 | Proxy betting2 |
| Jan. 2022 | New Jersey | NJDGE | Borgata | $76,000 | Patrons without proper ID |
| May 2022 | Ontario | AGCO | BetMGM | $37,450 | Advertising and inducements |
| May 2022 | Ontario | AGCO | PointsBet | $23,400 | Advertising and inducements |
| June 2022 | Ontario | AGCO | DraftKings | $77,000 | Advertising and inducements |
| July 2022 | New Jersey | NJDGE | Caesars | $50,000 | Improper employee registrations |
Notes:
(1) = Operators fined were the Mountain Thoroughbred Racing Association, PID LLC, and Chester Downs and Marina LLC. (2) = A future investigation in Pennsylvania by the Pennsylvania Gaming Control Board (PGCB) into the same proxy betting scheme is possible.
