Minutes ago, the New Jersey Division of Gaming Enforcement reported at its website its final order arising from its investigation of the Borgata counterfeit chip debacle in January of this year. Last Friday PPN provided an overview of the outcome of the order which was in place. then and has been disclosed to the public, today. To summarize: counterfeit chips were introduced into the Borgata Winter Open tournament’s first event. The DGE canceled the event upon determining it had been compromised and has scrutinized the entire matter coming up with the terse order that can be seen here: The terse order can be seen here:
http://www.nj.gov/oag/ge/2014news/BorgataWinterPokerOpenFinalOrder.pdf
The Borgata has issued a statement that fleshes out the order, providing details concerning disbursement of monies. It clarifies that players who did not cash, but may have been affected by the introduction of counterfeit chips will be refunded their relevant buy-ins; players who did not cash and were never exposed to the introduction of the counterfeit chips will not receive any refunds, whatsoever. Players who were awarded prize monies but didn’t pick up their pay will also get their monies. The full Borgata statement can be seen here:
Borgata Senior VP, Joe Lupo, is quoted as explaining that the Company is distributing all of the unpaid prize pool money and also voluntarily disbursing to players the revenues earned from buy-in fees. While the DGE order includes the latter, a reading of the order confirms that the revenues earned by Borgata that were included in the disbrsements came about from consultation with Borgata and not from an independent order on the part of the DGE.
Predictions:This means some 2100+ of the 2800+ players (for the 4800+ buy-ins) in the tournament will probably be pretty happy, presumably as will those who cashed down through 28th place who have been or will be paid per the advertised allocation of prize monies. They all earned their awards prior to a determination of a compromised tournament. Additionally, those in the second and third tier of the top 27, will probably find the payout livable as the disbursement is equal or greater than the original allocation for those spots. As to the top nine, sparks are sure to fly, but as to whether it will be sound and fury signifying nothing or a colossal headache for DGE and Borgata remains to be seen.
It should be noted DGE’s delay in getting out its report after it allowed many people to learn that it had been completed resulted in massive leakage, and significant misinformation that circulated for days. This state of affairs did not help to soothe ruffled feathers of those who are unhappy.
Last Friday all eyes were on the DGE after the regulators sent up white smoke signals that resulted in alerting executives at multiple casinos of an imminent decision. By late afternoon the smoke turned gray—without explanation. No announcement materialized until today. DGE’s further delay was almost inevitable, given its history in this matter; over the past weeks there have been several false alarms of an imminent announcement sounded by DGE to many parties with close ties to the regulators.
No matter how well reasoned by DGE the last bit of delay left Borgata personnel with their hands full–not only with new procedures but also with an onlslaughtof queries by frustrated tournament players–the entire weekend.
Was the DGE miffed by news of their deliberations leaking out to the public (against their preference) slightly before they were to take the stage?
Did the DGE deliberately encourage the leakage so as to the take the temperature in the tournament room at the Borgata before coming forward publicly with their pronouncements?
Or did they just bungle their own planned timetable by missing critical details that had to be put in place in their report?
These were the questions buzzing around the Borgata this past weekend as players became increasingly impatient over their inability to get clear cut answers.
To their credit, the DGE’s deliberations have reportedly included painstaking review of Borgata surveillance tapes and administrative documentation as well as broader investigation by crackerjack sleuths. Extensive research of other tournaments including the actual outcomes for players in the top 27 places has also been said to have been part of the process in considering the most appropriate resolution.
“The result of DGE and Borgata’s laborious effort to piece together as many relevant facts as possible has been a carefully considered resolution—regardless of whether or not one agrees with the DGE’s conclusions,” insists one knowledgeable New Jersey admitted lawyer who has served as a judge. Another lawyer, an AMLAW 100 litigator who had more than in inkling of the deliberations adds, “The results reflect an amazing amount of research which is why the matter has taken so long to consider.” He believes the decision takes into account relevant law, common sense and real practicalities in a very difficult situation.”
Based on conversations heard at the Borgata, this past weekend, it would seem likely that the decision will guarantee a very long, loud debate among poker pros and tournament directors across the country.
Come back to PPN for commentary, analysis and plenty on the back story in the coming days.