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Video gaming company faces $5 million fine for alleged inducement

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Illinois

* Like beer distributors, video gaming operators are prohibited from offering any inducements to proprietors. It’s one reason why we’ve seen the disappearance of beer coasters from taverns. But video gaming company Accel cut a deal with Draft Kings and is now looking at a possible $5 million fine from the Illinois Gaming Board, according to Yogonet Gaming News…

According to the complaint, as part of the deal between the betting companies, Accel would offer DraftKings advertising space on its video gambling screens, and then would get $200 from each new customer it drove to the sports betting outfit, provided they met certain conditions. Accel would have the right to share those payments with the establishments – often bars or restaurants – where those video gambling machines were located.

The gaming board quotes an email from Accel’s chief commercial officer, who asks for the agreement to specify that Accel will be sharing some revenue from DraftKings with business owners who have Accel machines.“We want it in the agreement so the gaming board can see that we are operating as a pass through for the commissions,” the email reads, according to regulators.

Another email noted, “We’d like to use the language of ‘participating partner establishments’ and clarify that we are passing these funds from [DraftKings] to the [video gambling establishments]. This is essential as we are not allowed to provide compensation to the partner from our funds as it could violate the [Illinois Gaming Board] inducement rules.”

The gaming board alleges that under the agreement Accel had complete control over the payments and planned to use them to curry favor with current and potential clients.

Accel denies the claim.

Thoughts?

posted by Rich Miller
Monday, Dec 21, 20 @ 9:47 am

Comments

Guessing Accel is correct. God to see the gaming board hard at work getting all the new licenses up and running

Comment by Annoin' Monday, Dec 21, 20 @ 9:57 am
I really don’t care. I just want to see more gambling and marijuana expanded so the state can actually get some benefits

Theres no question dispensaries and gambling have been helpful throughout this pandemic to small governments. The state needs money….expand it.

Comment by The Dude Monday, Dec 21, 20 @ 10:52 am
Interesting tidbit…how do the gaming companies get around the branded coasters, etc…?

Go into any corner tavern that has video gaming and the coasters, pint glasses, chairs at the machines, etc…all have the logo of the operator on them.

Comment by Bridgeport Bob Monday, Dec 21, 20 @ 11:02 am
Unless the agreement was exclusive with Draft Kings (so they would only advertise with these guys) I don’t see how this is an issue. It would seem the sort of deal any machine operator could offer.

Considering how much Draft Kings offers as an incentive to deposit money and for referrals in general I guess I fail to see how this is an inducement.

Comment by OneMan Monday, Dec 21, 20 @ 11:17 am
The state just made it doesn’t get a cut.

Comment by Bruce( no not him) Monday, Dec 21, 20 @ 11:30 am
The state does get a cut. Taxes have to be paid on the income.

Comment by Captain Obvious Monday, Dec 21, 20 @ 12:32 pm