Casino commission hits Trump Taj Mahal with big fine

Thursday, Oct. 7, 1999 | 9:29 a.m.

"It's one of the largest fines ever imposed" on a casino here, said state Casino Control Commission spokesman Daniel Heneghan.

The bulk of the fine the commission imposed, $237,199, was for baccarat dealers failing to charge 10 "premium players" the vigorish. That's a 5 percent commission that must be collected on winning hands baccarat players bet with the house; otherwise, the casino would hold no advantage over players on such bets.

According to commission documents, between Sept. 4, 1996 and May 6, 1998 the Taj Mahal allowed 10 wealthy gamblers, during a total of 17 gambling visits lasting a couple days to two weeks, to check out without collecting the vigorish. State law requires casinos to collect the vigorish before shuffling the cards to refill the dealer's dispenser.

The commissions, ranging from $1,150 to $107,600, were not settled for months, in some cases nearly two years, when the state was already investigating. Most were finally resolved by the casino issuing cash complimentaries, although without the normally required signature of the gambler. The commission allowed that so the state could collect its 8 percent gross receipts tax on $542,490, the total unpaid vigorish.

"The bottom line was simply too compelling - it was more profitable for the Taj to collect the $38 million in losing (credit) bets from these players than to insist upon their paying the outstanding vigorish requirement of $540,000," commission chairman James R. Hurley wrote in a 28-page report summarizing his investigation.

Taj Mahal spokeswoman Kim Butler said casino officials "had hoped for a better understanding of the business issues involved. However, we respect the commission's decision."

Taj executives admitted during hearings and in documents that some players with unpaid vigorish were allowed to return and gamble again without paying the outstanding commission. Taj officials maintained they tried to collect the commission, but said some players pressed to pay it "just got up and left."

Larry Clark, executive vice president of casino operations, testified that the 10 gamblers would bring with them or have credit lines ranging from $500,000 to $10 million. He said they were "hugely important" to the casino and the state - because of tax revenues.

The commission also imposed a civil penalty of $60,000 on the Taj for violating its own, commission-approved procedures in handling a cash complimentary given to a patron who lost $350,000 bet on credit on Sept. 19, 1996.

The violations occurred when casino workers initially miscalculated the amount of the cash comp that was to be deducted from that debt and had a marketing executive escorting the gambler to New York negotiate to collect half of the $50,000 difference, then bring a check back to Atlantic City; rules bar one person from performing both those functions.

Heneghan said the $297,199 fine is the ninth-largest imposed since the first casino opened in Atlantic City in 1978. The largest, $612,000, was imposed in 1991 against Caesars Atlantic City Hotel Casino.