Sports betting regulators in Tennessee have had about enough of hearing that violations were caused by human error.
On Tuesday, the Tennessee Sports Wagering Council approved fines to be paid by Caesars concerning two sports betting violations in the state. But staff had only presented the first violation of offering props on college sports before Chairman Billy Orgel stepped in to voice his frustration to Caesars VP of Compliance and Licensing Lisa Rankin.
“We take [compliance] very seriously here and sports gambling needs to be done responsibly. And I will quote my colleague Hanes Torbett loosely when he said that ‘We’re tired of hearing about human error’ when there is an issue here.
“We have enough technology, you guys do too, and I don’t think it’s like the old days where you’re using pieces of paper like they did in the stock exchange to make trades. Human error really shouldn’t be involved in that.
“I mean, there should be parameters set that people know that we don’t do prop bets on college sports here in Tennessee. So I would hope that your parameters, if that’s what you call them, are set properly. Because what it does is create a lot of work.”
Is the juice worth the squeeze?
Tennessee’s regulatory staff found Caesars offered props on NCAA baseball during research related to its license renewal. When brought to Caesars, it also found props available on NCAA volleyball as well, staff explained.
Those amounted to 118 wagers totaling nearly $4,900 in handle. The agreed fine was $1,314.45, which some on the council felt is simply too low, with Torbett saying it’s not worth the effort that goes into identifying and pursing these violations.
Torbett advocated for a flat fee that gets larger every time a sports betting violation is blamed on “human error.”
“These are technology companies and man, I just have a hard time with, quote, human error,” Torbett said.
Rankin noted Caesars restricted access to those employees who can change what is offered in a specific state, to avoid repeated issues in the future.
Human error caused second violation, too
Orgel dismissed Rankin after the vote and thanked her for her time, only to be caught off guard when there was a second violation from Caesars greater than the first.
A bettor that self-excluded for six months in January attempted to make a second account in February using a different email, phone number and social security number from their first account, council staff explained. While the automated know-your-customer process denied the account creation by design, a Caesars employee manually approved it.
The employee checked the social security number to ensure it was valid, but did not make sure it matched the name on the account. That employee is still working with Caesars and was retrained, Rankin said.
That account deposited around $3,000, bet 83 times and withdrew winnings from the account. Caesars accepted a $3,000 fine.
“Boy, I hope this person’s getting help,” Orgel said.
“We do, too,” Rankin responded.
Sports betting violation agreements
Executive Director Mary Beth Thomas explained to the council that while the fines may seem small, the agreement between regulator and operator saves a lot of staff hours.
If an operator did not agree to a fine, then it would have to be summoned by the council, hold a hearing concerning the evidence and make a ruling. If appealed, that would then return back to the council along with an administrative law judge.
In other words, a lot more time could be spent on the issue if there is not an agreement, Thomas explained.
“Got it, ok, I appreciate it, admitting guilt and not fighting, every time you have [a violation agreement] they’re pretty cut and dry,” Orgel said.
