The Nevada Gaming Commission has thrown down the gauntlet to Penn Entertainment, calling out the industry heavyweight for significant compliance mishaps – an unsettling hand that includes minors wandering casino floors, self-excluded individuals successfully placing bets, and the lumbering pace of updating company policies. These high-stakes glitches became the centerpiece of heated discussions during the evaluation of Penn’s ongoing IPO. Despite the raised eyebrows, the IPO managed to squeak through with an approval.
Penn Entertainment Vows to Reshape Policies Amid Regulatory Heat
Penn Entertainment, the operator behind 43 American casinos including the swanky M Resort Spa Casino in Henderson and the popular Cactus Pete’s Resort Casino in Jackpot, found itself in the hot seat, as reported by CDC Gaming. Commissioner Rosa Solis-Rainey was quick to remind everyone that these compliance tangos have been a recurrent theme since 2020, flagged by past examinations.
Chris Soriano, the embattled vice president and chief compliance officer at Penn Entertainment, faced the firing squad, promising that the company would wrap up a comprehensive policy review by August 15. Sluggish timing aside, Soriano attributed this delay to an expansive audit conducted alongside outside legal counsel and a thorough probe into the interactive business ops, striving to forge robust and effective policies.
However, Solis-Rainey wouldn’t let up, voicing her dissatisfaction with the postponed deadline and demanded to know what interim steps were being taken to plug the leaky ship. In a bid to mitigate, Soriano talked about enhancing communication across the various properties, working on a corporate policy that’s agile enough to dance to the different regulatory tunes of each state. He confessed that juggling the whims of 20 distinct regulators is no small feat.
Penn Entertainment Under Pressure to Bolster Internal Controls and Train Staff
Soriano elaborated on a recent initiative where critical information is cascaded down to general managers, and their vigilance is closely monitored for policy violations. This novel approach is currently under the microscope for its effectiveness. But Solis-Rainey hammered home the point that communication alone won’t cut it without the muscle of strong internal controls. She stressed the necessity for property-specific safeguards to align with overarching policy standards.
Commissioner George Markantonis mirrored this sentiment, suggesting that perhaps tying employee paychecks directly to compliance performance could be a game-changer. In a nod of agreement, Commissioner Brian Krolicki acknowledged the Herculean task of managing compliance across 43 properties, but underscored the urgent need for quick and decisive action. While progress has been sighted, the snail’s pace is truly irksome.
Soriano assured the Commission of the company’s earnestness in tackling these issues, with plans to regroup with the Nevada Gaming Control Board in September for further updates. He raised a pertinent point—are the training programs robust enough? Well-drafted policies demand capable hands to bring them to life.
The sharp retort from Abi Silver encapsulated the gravity of the situation. She was staggered by the number of violations and deeply concerned about their scope. Soriano doubled down on Penn’s commitment, emphasizing the need for a top-down culture shift to ensure that compliance is not just a buzzword but a creed followed by both management and front-line staff alike.
