Nevada gaming regulators approve limited license for Accel Entertainment

May 19, 2022 10:41 PM
  • Buck Wargo, CDC Gaming Reports
May 19, 2022 10:41 PM
  • Buck Wargo, CDC Gaming Reports

The Nevada Gaming Commission Thursday granted video-gaming-terminal provider Accel Entertainment a two-year license to operate in the state after the company said it named a former chairman of the Nevada Gaming Control Board to head its compliance committee.

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The licensing paves the way for Accel to close on a deal by the end of May with Century Gaming Technologies for $140 million. Acquiring the rival slot-route operator will give Chicago-area-based Accel a foothold in Nevada and Montana, two of the nation’s legacy distributed gaming markets.

Former Board Chairman Dennis Neilander will serve as chairman of the compliance committee. Former Chairman Sanda Douglass Morgan and partners at her firm, Covington & Burlington, have been retained to advise the company on corporate-wide matters and provide a review of its policies.

Accel came under criticism earlier this month by members of the Nevada Gaming Control Board for past compliance issues, including their handling of a sexual-harassment case and issues of due diligence, including document retention. Accel is also facing a $5 million fine from the Illinois Gaming Control Board from an agreement it signed with DraftKings. That state’s regulators said it violated a law that forbade incentives to keep Accel machines in video-gaming establishments.

On Thursday, Commission member Rosa Solis-Rainey invoked Vincenzo Dublino, a video-gaming-terminal handler and sales agent who had prior involvement with the Chicago mob. It was reported in 2010 by the Chicago Sun-Times that Dublino testified at the racketeering trial of Michael “the Large Guy” Samo. The Sun-Times wrote that Dublino was granted immunity after acknowledging he sold illegal video poker machines to Chicago-area bars.

Solis-Rainey said she questioned the company’s judgment in wanting to hire Dublinio and looking for cover from the Illinois Gaming Control Board in licensing him.

“That’s not an acceptable process,” Solis-Rainey said. “If you had concerns about him, you shouldn’t have gone forward.”

Commissioner Steven Cohen said that the issue with Dublino “are troublesome.” The Sun-Times reported that the Illinois Gaming Control Board ordered Accel to “disassociate” from Dublino.

“That is a very serious judgmental issue you have to resolve going forward,” Cohen said. “If you harbor doubts and have information, don’t hire. Don’t look for cover. It will come back to haunt you at some point down the road. After reviewing the process, that’s why your limited license is on the table.”

Derek Harmer, Accel general counsel and chief compliance officer, told the Commission about the company’s accelerated compliance initiatives since the Gaming Control Board hearing. He said Dee Robinson, a current member of Accel’s board of directors and former member of the Illinois Gaming Board, will also serve on the gaming compliance committee. Furthermore, Accel will be working with the UNLV International Center for Gaming Regulation to implement a training course for best practices for compliance, plans, audit, and vendor and business background checks.

“It’s our responsibility to do our diligence and not rely on our partners to do it for us,” Harmer said. “Since our last hearing, we have accelerated some of the items previously on our to-do list to illustrate that we heard you loud and clear on the steps that need to be taken on reaching Nevada’s gold standard of compliance.”

Commission Chairwoman Jennifer Togliatti touched on Accel’s challenging the Illinois Gaming Board’s $5 million fine.

“We have a fundamental disagreement as to the application of the law in the area in which they alleged we have misconduct,” Harmer responded. “That body of law has morphed over the last 10 years as policies have been set by the Gaming Board and have permitted conduct between local establishments and terminal operators in terms of what services can be shared and how they can co-promote. … We think the fine is not connected to the conduct we have been alleged to have committed.”

Before unanimous approval was granted, Commissioner Ben Kieckhefer said he appreciated the efforts by the company to shore up its compliance, which was troubling coming out of the Gaming Control Board hearing.

“I would echo that,” Solis-Rainey said. “I’m prepared to support it with limitations because of the changes that you’ve made. I think you’re bringing good people on board and that helps me get over the reservations I had coming into the meeting.”