Caesars Entertainment, which also controls Harrah’s, Tropicana, as well as Caesars in Atlantic City, is being fined heavily by the New Jersey Division of Gaming Enforcement. Caesars Entertainment is being fined approximately $50,000 as a result of various violations including violating the Casino Control Act.
According to reports from the DGE, the Caesars brand has for several years employed individuals in various positions through its different departments without ensuring that the staff has the right casino employee registrations. The DGE has proof that Caesars hired individuals in purchasing, IT, credit, human resources, as well as marketing without verifying their employee registrations.
Under section 50B of the Casino Control Act, casino employees must be qualified and have a casino license. Typically, non-management roles that do not have any connection to gaming do not require a license. However, all gaming-related casino employees must be licensed by the Division of Gaming Enforcement.
This includes all dealers, cashiers at the cage, as well as security guards must also be registered with the DGE first. If employees are involved with the running of the casino in a supervisory role, they also need a Casino Key Employee license from the commission. This is also true of any staff members that are required to make discretionary decisions for the casino.
Other employees that must get a Casino Key Employee license include the management of the hotel, which includes managers, directors, as well as those in charge of food and beverages. To acquire a license, each staff member is asked to produce documentation and other assurances regarding the qualifications they have for the various positions.
Applicants are also required to establish their integrity and good character before they can be hired. Furthermore, casino staff members that hold the employee license from the commission must also be a resident of New Jersey unless a waiver is given. Casino Key Employee Licenses expire after 5 years after which they are reviewed again by the commission to make sure that the applicant does indeed meet the requirements.
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Caesars found with numerous violations
The DGE found Caesars to have failed to properly maintain complete and accurate records for its employees, including all the required license and registration numbers. At the beginning of last year, Caesars self-reported to the DGE that at least 60 of its staff members in various roles had been operating without the proper registrations.
In its self-reporting letter to the DGE, the director of the Gaming Enforcement reported that 7 IT specialists had been working with inactive casino employee registrations. In total, Caesars reported 40 violations after failing to meet the January deadline for registrations and re-applications.
Thankfully, the brand was able to fix its issues in March with the DGE pardoning the brand without any serious regulatory action. In this case, the DGE found that the Caesars brand had failed to submit monthly employment reports. In some instances, several staff members were even omitted from the monthly reports while in others appropriate credential information was missing.
In a separate filing, the Gaming Commission also ordered Caesars to forfeit approximately $22,666.30 worth of gaming winnings that were confiscated by the casino brand from its customers. Caesars is said to have confiscated the funds from punters that failed to give proper identifications, abandoned their assets, or been banned from taking part in any gambling activity on the Caesars premised.
Another casino and close Caesar’s competitor Bally’s was also ordered by the DGE to forfeit approximately $6,714.30 that was acquired from customers that failed to produce appropriate IDs. Borgata was also previously fined for the same problem with 13 customers whose winnings totaled $1,174.92.
Caesars performance drops
For numerous months, Borgata, Oceans Casino, and Hard Rock have emerged as the top 3 casinos in Atlantic City. As the pandemic’s darkest and most restrictive days appear to be behind us, only the 3 casinos have maintained their dominance in New Jersey. According to numbers that were shared by the New Jersey Division of Gaming Enforcement, revenue from retail casinos totaled just under $299 million in July 2022.
This was a boost of 8% compared to the same period in July last year and more than 8% compared to July before the pandemic struck havoc on the world. July 2022 was the best revenue-generating month that casinos in Atlantic City had experienced in more than 10 years.
From the $299 million that was produced, slot machines accounted for the highest profits generated, accounting for an excess of $215.8 million. Table games, on the other hand, managed to generate $83.1 million producing 15% more revenue than they did during the same period last year.
Borgata, as the biggest revenue generator, produced $76.7 million in July via its retail gaming floors, while Hard Rock won almost $52.9 million. Oceans experiences the biggest gains as it managed to generate $40.3 million, which was a boost of more than 30% compared to the same period last year. In total, the top 3 casinos produced an estimated $169.9 million, which translates to 57% of New Jersey’s brick-and-mortar casino wins.
While the numbers were great for Hard Rock, Oceans, and Borgata, the same cannot be said for other more established casino brands which continue to struggle. The 4 remaining casinos all reported drops in the gross gaming revenues. For instance, Tropicana’s GGR managed to generate $28 million, which was a drop of 5.5%.
Harrah’s produced $26 million, a decrease of 9% while Caesars generated $25 million, which was a drop of 3.3%. Golden Nugget experienced the second largest drop in gross gaming revenue experiencing a decline of close to 7% to generate $14.5 million.
Bally’s produced the lowest revenue of $16.8 million. However, this number was an improvement of 3% as the casino was still closed for renovation last year and was therefore not operating at full capacity like some of its competitors.
Final Thoughts
All in all, paired with iGaming and a lucrative sports betting industry, gambling in New Jersey continues to advance at an alarming rate. Casino revenue reached its peak this July for the first time in more than 10 years, which reflects the strength of AC as a top gaming and leisure destination in the country.
