Nevada-based Monarch Casinos & Resort have agreed to pay a $400,000 (€373,430) fine to the Colorado gaming regulator following the discovery that sportsbook employees were placing proxy bets on behalf of out-of-state customers.
During an internal review, the company discovered that three members of staff at its Black Hawk Casino were placing proxy wagers. This is when someone is placing bets on behalf of another person who is usually located out-of-state. In Nevada where the parent company is based, proxy wagering is legal when carried out through an approved proxy service. However, it is strictly forbidden in Colorado.
Once the discovery was made, Monarch Casinos self reported the violation to the Colorado gaming regulator.
Monarch representatives agreed with the results of an investigation carried out by the Colorado Limited Gaming Control Commission. The investigation discovered a total of 79 proxy wagers, amounting to nearly $61,000 (€56,948), that were placed for 11 separate customers from January 2021 to June 2022. The majority of these wagers were made through the BetMonarch mobile app, while 19 bets were placed at the casino’s sportsbook.
Once regulators approve the settlement on Thursday, it will result in the biggest penalty ever imposed on a casino operator in Colorado but still less than the $500,000 paid by slot developer Aristocrat Technologies. The company was fined in 1997 for deliberately misrepresenting the value of its machines in order to pay less tax.
The Colorado Department of Revenue have yet to release an official statement on the fine but is expected to do so today, Thursday 16th Feb 2023.