Pennsylvania gaming regulators have doled out over $480k worth of fines, more than $400k of which was due to American Gaming Systems’ (AGS) failure to disclose a business relationship.
On Wednesday, the Pennsylvania Gaming Control Board (PGCB) announced that it had fined four companies a total of $481,116 for various infractions, including a $50k penalty against the operators of the Valley Forge casino for giving out excess amounts of free slots play, and a $24k fine for slots provider Ditronics Financial Services being late in filing its annual financial statements.
But the bulk ($351k) of the fines were levied against AGS for failing to disclose an intellectual property purchase agreement with In Bet Gaming, which develops tweaks to popular casino table games such as In Between blackjack side wagering, Dragon Poker and Hot Roller Craps.
In Bet Gaming is licensed to operate in Pennsylvania but AGS is not, but the PGCB claims this didn’t prevent AGS from engaging in business with Pennsylvania casinos via In Bet Gaming and receiving proceeds from In Bet Gaming’s business with these casinos.
The Nevada-based AGS made its name supplying electronic gaming devices and table games to US tribal casino operators, but branched out into interactive social gaming via its 2015 acquisition of developer RocketPlay.
The New Jersey-based In Bet Gaming didn’t emerged unscathed from this debacle, as the PGCB hit the company with a nearly $56k fine for circumventing the state’s licensing requirements by failing to inform the PGCB of the intellectual property rights deal with AGS.
The deal in question appears to have been struck last October, when AGS acquired the rights to five In Bet Gaming products, including Jackpot Blackjack and progressive games Super 4 Blackjack and Royal 9 Baccarat.
