Penn Entertainment, which runs 43 casinos across the United States, faced rigorous examination during a Nevada Gaming Commission meeting
The Nevada Gaming Commission criticized Penn Entertainment for major issues with compliance, such as having minors in casinos, allowing self-excluded persons to place bets, and slow updating of company policies. These failures became a key subject d uring the evaluation of Penn’s ongoing IPO, which was approved despite the raised concerns.
Penn Entertainment Pledges Policy Overhaul Amid Regulatory Scrutiny
Penn Entertainment, which operates 43 American casinos including M Resort Spa Casino in Henderson and Cactus Pete’s Resort Casino in Jackpot, was subjected to intense scrutiny, reported CDC Gaming. Commissioner Rosa Solis-Rainey pointed out that persistent problems with compliance had been detected since 2020 when they were flagged up by previous examinations.
Chris Soriano, vice president and chief compliance officer at Penn Entertainment, told the Commission that the firm intends to complete its policy review by August 15. This delay has been caused by a far-reaching examination conducted together with outside legal counsel and a deep dive into its interactive business operations aimed at creating strong policies that work.
But Solis-Rainey expressed dissatisfaction with this postponement and asked what temporary measures are being taken to prevent more breaches. In response, Soriano said that Penn can improve communication among its properties and is working on a corporate policy that accounts for different regulatory environments across states. He admitted that dealing with 20 regulators each having unique priorities is difficult.
Penn Entertainment Faces Pressure to Enhance Internal Controls and Staff Training
Soriano explained about a recent initiative where information is provided to general managers who are then monitored for subsequent violations. This new system is being evaluated for effectiveness. Solis-Rainey, however, emphasized that improved communication alone is insufficient without corresponding internal controls. She stressed the need for tailored controls at each property to meet the overarching policy standards.
Commissioner George Markantonis agreed with these sentiments and further suggested that tying employee compensation directly to compliance performance could be effective. Commissioner Brian Krolicki acknowledged the complexity of managing compliance across 43 properties but underscored the critical need for swift and serious action. He noted that while progress had been made, the pace was unsatisfactory.
Soriano told the Commission that the company is serious about these issues and plans to meet with the Nevada Gaming Control Board in September for updates. He said that they are considering if staff training is enough because well-drafted policies need trained employees to implement them correctly.
Abi Silver was shocked by how many violations were reported and expressed concern at the extent of the issues. Soriano reiterated Penn’s commitment to addressing these concerns, recognizing the importance of a top-down approach to ensure that management and staff take compliance seriously.
https://www.gamblingnews.com/news/nevada-gaming-commission-confronts-penn-on-compliance-shortfalls/