Casino company fined $275,000 for collection violations

Friday, May 26, 2000 | 11:05 a.m.

The resort reached the agreement with the Gaming Control Board on May 12. It includes an admission of eight violations of South Korean foreign exchange laws and 13 breaches of state gaming regulations.

Dan Wade, co-chief executive of the company's parent MGM Grand, Inc., apologized for the violations, blaming "a couple of employees who didn't follow the law."

Wade told the commission his company has stepped up compliance activities regarding international collections. Additionally, the agreement requires the MGM Grand to implement controls designed to ensure future compliance with foreign laws, and to modify cash procedures to better comply with state regulations.

Brian Sandoval, the commission's chairman, told Wade the incident, while unfortunate, was reported by the MGM Grand, which reflects well on the company and industry.

In other action, the gaming commission approved a conditional finding of suitability as a licensed corporate officer for Scott LaPorta, Park Place Entertainment Corp.'s executive vice president, chief financial officer and treasurer.

LaPorta failed to acknowledge a 1995 drunken driving arrest on his 1996 application for a state gaming license, failed to acknowledge the omission on several subsequent occasions, and failed to list the arrest on applications to other gaming jurisdictions.

The commission also approved amendments to gaming regulations relating to intercasino linked systems and progressive awards. The commission heard arguments by attorney Jack Godfrey of the Las Vegas firm Schreck Morris, representing the Nevada Resort Association, who argued the changes did not require the operators of multicasino linked jackpots, such as International Game Technology's Megabucks game, to receive board and commission approval when new games based on the existing platform are introduced.

The commission said the regulatory changes only require commission approval when system operators change the linking mechanism. Only the board chairman's administrative approval would be required when systems change theme or denominations.