Proxy betting is an activity that involves placing a wager on behalf of another person that is from a state where gambling is not legal for example. There are currently regulations that prohibit such bets in some US states, but there are states that also allow the activity such as Nevada, although under specific guidelines.
Monarch Casino & Resort to Pay a Fine in Connecticut over Proxy Wagers
Proxy betting is an activity that involves placing a wager on behalf of another person that is from a state where gambling is not legal for example. There are currently regulations that prohibit such bets in some US states, but there are states that also allow the activity such as Nevada, although under specific guidelines. However, Colorado is one of the states where proxy betting is in breach of the gambling regulations and therefore placing bets on behalf of another person is prohibited.
Monarch Uncovers and Self-Reports Proxy Wagering Scheme
As reported by The Nevada Independent, executives from Monarch Casino & Resorts’ Black Hawk location uncovered and consequently self-reported that three employees participated in proxy betting. The three employees, who were fired, reportedly placed proxy bets on behalf of customers.
The casino’s executives uncovered a total of 79 proxy bets. From that total, 19 bets were placed via the Monarch Casino & Resorts’ BetMonarch mobile wagering app. On the other hand, the remaining wagers were placed on-site via the casino’s sportsbook.
The total amount of the wagers was nearly $61,000 and the executives’ probe uncovered that the employees placed the bets on behalf of 11 different customers. According to Black Hawk casino’s executives, the illegal operation was conducted between January 2021 and June 2022.
The Breach of the Regulations Results in a Fine
The recent report reveals that in light of the breaches of the regulations due to the proxy bets, the gambling operator agreed to pay a $400,000 fine to the gambling regulator in Colorado. Still, this is not the final decision as the regulator now needs to accept the settlement. This is expected Thursday.
If the Colorado gambling regulator green-lights the settlement, the $400,000 fine would be the biggest sanction imposed against a gambling operator in the state. Still, the fine won’t be the biggest one for the sector, considering the $500,000 financial fine paid by Aristocrat Technologies, a developer of slot machines back in 1997. On the other hand, the second-biggest fine paid by a gambling operator dates back to 2005, when Golden Gaming paid a $270,000 financial penalty.
The announcement came at a time when Monarch released its fourth quarter and 2022 results, outlining strong growth. Earlier this week, the company confirmed that its revenue in 2022 increased by nearly 21% hitting $477.9 million.
