The Nevada Gaming Control Board (NGCB) filed a complaint against Station Casinos on Sept. 13, 2021, for taking illegal wagers.
The NGCB accuses Red Rock Casinos (aka Station Casinos) of taking nearly 350 wagers over the course of nearly three years on events where customers already knew the outcome. According to the NGCB complaint, 348 illegal wagers occurred between May 31, 2018, and May 19, 2021.
The board says Station Casinos accepted money for the improper bets in June 2018, January 2019 and March 2019.
On or about June 1, 2018, the sportsbook accepted 35 wagers on five events after the outcome was decided. Another 116 wagers came in on events after the results around Jan. 9, 2019. Lastly, Station Casinos accepted another 30 wagers on three events post-completion around March 7, 2019
This complaint comes after several warning letters to Station Casinos from the NCGB. The gaming commission has not set a fine or other disciplinary action for this complaint. Penalties for this matter may be financial or as extreme as a suspension or revocation of Station Casinos’ gaming license.
Station Casinos accepted sports bets due to computer errors
These improper wagers took place during a three-year period. It appears as though computer errors related to Stadium Live software were at fault each time. This is the software used inside the casino sportsbooks and the STN Sports mobile app.
In the complaint, the NGCB says Station Casinos was “well aware of prior computer errors related” to the Stadium Live program. The casino operator says the numerous computer malfunctions occurred because of “insufficient server memory.” Somehow, these problems occurred repeatedly over a three-year period including this year.
Earlier this year, on March 18, Station Casinos reported a malfunction of the Stadium Live software. This error caused the sportsbook operator to accept about 167 improper wagers. The company took immediate action refunding and voiding these wagers.
The NGCB complaint indicates that a Station Casinos employee said that these computer errors “were 100 percent avoidable.”
The NGCB complaint adds that “repeated violations constitute ground(s) for license revocation or other disciplinary action.” It will be up to the Nevada Gaming Commission (NGC) to decide on a penalty.
A precedent set by CG Technology?
There hasn’t been a complaint about a major sportsbook error like this in a few years. In 2018, CG Technology (purchased by William Hill, now owned by Caesars) paid a hefty $2 million fine for violations in 2016 and 2017.
CG Technology paid a $1.75 million fine and made a $250,000 contribution to the Nevada Council on Problem Gaming. This fine was for more than just accepting wagers after events had taken place. Another fine occurred after CG Technology accepted out-of-state wagers and incorrectly paid bettors.
Another two fines for CG Technology occurred before 2018. In 2014, CG Technology (then Cantor Gaming) paid $5.5 million for multiple offenses, including employing someone who was an agent in a nationwide illegal betting operation.
The company was also fined in 2016 for technology problems. The NGC might look at this fine as a similarly appropriate punishment for Station Casinos.
The NGC has yet to set a date to hear Staton Casinos’ side of the story. Stay tuned.