Caesars hits back at Massachusetts regulator
Casino group claims the commission's suitability concerns are "arbitrary, unreasonable, and inconsistent"
Caesars Entertainment has hit back at the Massachusetts Gaming Commission (MGC) following a report on the operator’s suitability for a casino license in the US state.
A spokesman for Caesars said the MGC was attempting set standards of suitability that are “arbitrary, unreasonable, and inconsistent” with those enforced in other US gaming jurisdictions.
News of Caesars’ troubled casino license application, under which it planned to partner with Suffolk Downs and build a US$1bn resort casino at the racetrack, emerged earlier this week. Caesars has since withdrawn from the partnership.
The MGC report raised questions over Caesars Interactive Entertainment CEO Mitch Garber’s earlier career in the egaming industry, as well as license agreement with the Gansevoort Hotel Group, and its current financial situation which sees it heavily in debt.
It noted that under Garber’s leadership, PartyGaming and Optimal Payments both entered non-prosecution agreements with the US Department of Justice, forfeiting $105m and $19m respectively.
“Garber was the CEO of two companies that came under scrutiny by the DOJ for illegal internet gaming transactions while he was their CEO,” the report said.
However a spokesman for Caesars has the operator disagrees with the nature of the queries and are “thoroughly prepared” to address the concerns.
“Following discussions with our partners, and in light of the Commission’s approach as well as our minority stake in this project, we withdrew our application at the request of and in deference to our partners in the project,” the spokesman told eGaming Review.
“We have determined it is in the best interest of the company to focus on our 54 properties around the world and on new growth opportunities,” he added.