Live! Casino Fined $100,000 By Pennsylvania Regulator For Allowing Proxy Betting

Pennsylvania

The Pennsylvania Gaming Control Board (PGCB) has action against the operator of Live! Casino and Hotel Philadelphia, Stadium Casino RE, LLC, levying a $100,000 fine for accepting unauthorized proxy wagers via telephone.

The PGCB’s investigation revealed that several sportsbook employees at Live! Casino had placed a total of 15 wagers amounting to $287,421 on behalf of a patron who was not physically present at the casino. Proxy betting, is explicitly prohibited by the Pennsylvania Gaming Act, which mandates that wagers can only be accepted from the individual placing the bet.

The three sportsbook employees involved in the proxy wager scheme were swiftly terminated, and their gaming licenses were revoked by the PGCB. This decisive action underscores the regulatory body’s commitment to maintaining the integrity of Pennsylvania’s gambling industry and holding responsible parties accountable for any violations.

The patron who had requested the proxy wagers was also subject to disciplinary measures. The PGCB has added this individual to the Involuntary Exclusion List, effectively banning them from participating in any gambling activities within the state of Pennsylvania.

The PGCB’s Bureau of Casino Compliance was alerted to the proxy wager violations two years ago when a sportsbook employee reported that the patron had requested three wagers totaling $95,000 via text message. The patron had promised to visit the casino to pay for the wagers but failed to do so, prompting further investigation.

The initial investigation revealed 12 additional instances where Live! Casino employees had placed wagers on behalf of the same patron when they were not physically present at the casino. This pattern of illicit activity underscores the need for robust internal controls and employee training to prevent such breaches.

When the patron eventually visited the Live! Casino on June 18, they were confronted by security personnel. The patron claimed that they had planned to come to the casino on June 17 to pay for the wagers, but a break-in at their home and the theft of a bag of money had prevented them from doing so.

In response to the PGCB’s findings, Live! Casino acknowledged that its employees had used personal phones to bypass the casino’s anti-proxy wagering procedures. The casino promptly suspended and terminated the involved employees, conducted an internal investigation, and self-reported the incidents to the PGCB.

To address the violations, Live! Casino has implemented several corrective measures. These include lowering the surveillance notification threshold for wagers to $10,000 to increase scrutiny, banning personal cell phones in the sportsbook area, and issuing company phones with restricted usage. Additionally, the casino has installed clear signage emphasizing the prohibition of proxy wagering and intensified training for its staff.