Colorado Betting Scandal Unveiled: "Monarch" Fined for Breaching Gambling Regulations
Monarch Casino & Resorts faces $400k fine for employees' proxy bets on behalf of customers in breach of Colorado gambling regulations.
Monarch Casino and Resorts has found itself at the center of a proxy betting scandal after it self-reported that three employees participated in the activity. As a result, the gambling operator has agreed to pay a $400,000 fine to the Colorado gambling regulator, pending the regulator's acceptance of the settlement.
The proxy betting scheme, which involved the employees placing bets on behalf of customers, was conducted between January 2021 and June 2022. A total of 79 proxy bets were placed, with the bets totaling almost $61,000. The illegal operation was uncovered and reported by executives at Monarch's Black Hawk location.
While some US states, such as Nevada, allow proxy betting under specific guidelines, Colorado prohibits the activity. The breach of regulations has resulted in the biggest sanction ever imposed against a gambling operator in Colorado, pending the regulator's acceptance of the settlement.
Monarch's fourth-quarter and 2022 results revealed strong growth, with revenue increasing by almost 21% to $477.9 million. However, the proxy betting scandal has marred the gambling operator's otherwise successful year.