Parx complaint led to $200,000 Valley Forge Casino fine
Parx Casino's legal team has long been a thorn in the side of Valley Forge Casino Resort, starting with a years-long effort to block the Montgomery County casino from opening.
That thorn proved sharp on Wednesday.
The Pennsylvania Gaming Control Board's $200,000 fine against Valley Forge Casino Resort, announced after a board meeting in Harrisburg, originated in a February allegation by Parx officials that Valley Forge was offering an illegal promotional deal to its customers.
The penalty, which I wrote about here in The Inquirer, was the single biggest fine ever levied by the gaming board. It was for violating rules on special offers designed to attract customers to the Valley Forge casino, which faces unusual restrictions because of its license category.
The illegal promotion, which offered seasonal and annual dining club memberships for free or at a discount, didn't even pay off for Valley Forge.
Valley Forge's attorney, Kevin C. Hayes, told the commissioners: "36.7 percent of those patrons who obtained membership through the Lucky Day promotion came to the facility on one occasion, the day they signed up, and never returned. By the end of October of this year, less than 4 percent of those individuals who acquired memberships through the program were still members."
The deal involved $20 gift cards that were worthless outside the casino resort, but could be put toward a membership that gave customers access to the casino floor without first having to spend $10 elsewhere in the resort.
From January through July 15, Valley Forge gave away $1.6 million worth of gift cards to customers.
Those customers redeemed $960,500 worth of cards for dining memberships, according to the consent agreement between the board and Valley Forge.
Read more at http://www.philly.com/philly/blogs/double-down/Parx-complaint-led-to-200000-Valley-Forge-Casino-fine.html#xBCr00y7RwxyeZMK.99
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