Palms $100,000 Payout Penalty

The Palms Casino Resort has decided to settle with the Nevada gambling regulators concerning a dispute dating back to 2007. The Palms casino held two poker tournaments inside their casino that were actually licensed to an independent operator outside of the Palms Group. The two poker tournaments in 2007 ended up in dispute after the funds promised for payout took some time to be paid. One tournament was a charity tournament and the benefiting charity had to wait four months for the money to arrive. The second tournament left the winners waiting for their cash for some time. This of course is against the rules of the Gaming Committee.

The Palms Casino Group cooperated fully when they learnt of the problems that players were having concerning retrieving their winnings and ensured that they were paid. At a time when casinos are being scrutinised intensely by the government and gaming bodies, the Palms could not afford to have any negative publicity. The casino decided that rather than dispute the issue that they would settle the issue with the payment of $100,000 fine.

The main issue that the gaming board has, they explained, is that they do not want less than reputable operations using indirect routes to get to customers. In this case, they used a legitimate casino to front their less than good business intentions. By making it clear that this will not be tolerated with any casino, the board is hoping that other casinos will be more cautious regarding dealing with outside operators. If the casino license is at risk then they will take more protective measures and ensure that operators follow state gaming laws.

Although the Palms have paid the fine, the owner George Maloof is clear that they feel they have conducted themselves well considering the situation. “We didn’t wait for the board’s resolution,” Maloof said. “We’re real proactive. From the moment we found out these people weren’t paid, we acted,” he said in regards to the two tournaments. The casino has not just paid the fine but also settled $450,000 in unpaid prize money. This money was supposed to have been paid to players by the United States Poker League that organised the tournament.

The Palms had not as yet taken action against the operators who held the tournaments.  The charity tournament was organised by Michael Eakman and Associates and the proceeds were to go to help the Jewish community. The charity then waited for four months for the money to arrive. Mr Malouf has said that the casino is considering the right action to take concerning the matter and that the Palms will do what they feel is the right thing for the best of the casino and the business.

Although the casino did not carry out the tournaments, they are still accountable as they were held in their premises and under their license. Now the issue has been resolved the casino can move on from the matter and reflect on future dealing with outside parties wishing to use the casino.

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