Casino fined
$800K for marketing to banned gamblers
Source: Chicago Business; Bob Tita, May 19, 2008
(Crain’s) — The Illinois Gaming Board on Monday
fined Hollywood Casino in Aurora $800,000 and
suspended three managers for sending promotional
materials to problem gamblers who asked to be banned
from casinos in the state.
It’s the largest fine the board has ever levied for
such an infraction.
As
part of a campaign to develop new customers, the
casino rented a list of names from a firm that
operates ATM machines at Illinois casinos. In
January, the casino mailed promotional materials,
including coupons to use at Hollywood Casino, to
nearly 15,900 people identified as prospective
customers.
However, the casino’s marketing department failed to
check the list against the names of people enrolled
in the Gaming Board’s Self-Exclusion Program. The
board said 146 people in the program received the
mailing.
Penn National Gaming Inc., the owner of Hollywood
Casino, did not immediately return calls seeking
comment.
Hollywood’s $800,000 fine is the largest penalty to
date levied against an Illinois casino for
infractions involving the self-exclusion program. In
2005, Empress Casino in Joliet was fined $600,000
for allowing promotional materials to be mailed to
people enrolled in the program. In that case,
Empress failed to enter the names of enrollees in
the casino's marketing database.
The
voluntary program allows problem gamblers to cut off
their access to state casinos. The exclusion
includes promotional materials intended to entice
customers to visit.
The
suspensions, announced at Monday’s board meeting,
were for three Hollywood managers: General Manager
G. Patt Medchill, whose license was suspended for
three days; head of external marketing Christopher
Rellinger, for 14 days, and Vice-president of
Marketing Alan Rosenzweig, 10 days. Casino employees
cannot work without a state license.
More information on the negative effects of gambling.
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