Palms Casino Pays $100,000 Fine to Resolve Poker Complaint

The Palms Resort Casino in Las Vegas has agreed to pay $100,000 to settle a complaint after failing to correctly supervise a pair of poker tournaments in 2007. The resort will pay a $75,000 fine to the Nevada Gaming Commission (NGC) and another $25,000 to the Nevada Gaming Control Board (NGCB) for the cost of the investigation.

According to a complaint brought by the state’s attorney general’s office, which was picked up by media outlets like the Las Vegas Review-Journal, the tournaments were held by third parties that did not register with state gaming regulators prior to the events. By hosting the tournaments on their site, the Palms used its license to legitimize the two events. However, the NGCB stated that it doesn’t want outside operators using licensed Nevada casinos to “legitimize less-than-legitimate types of programs.”

The two tournaments were brought to the attention of the Board when it was learned that prize money was left unpaid following their completion.

“By allowing the poker tournament(s) to proceed without adequate planning and follow-up, the Palms failed to exercise the proper discretion and sound judgment to prevent a situation that might reflect negatively on the reputation of the State of Nevada and its gaming industry,” the complaint said.

One of the tournaments involved was the inaugural United States Poker League’s Poker Bowl, which was held in October of 2007. The team-based event was at first considered to be a giant success after attracting many of the game’s biggest names, such as Doyle Brunson, Kathy Liebert, Scotty Nguyen, Phil Laak, Antonio Esfandiari, Greg Raymer, and Paul Wasicka. Team Cincinnati, represented by former World Series of Poker (WSOP) runner-up Steve Dannenmann and five other players, won the event and $600,000.

However, Poker Bowl’s owner and founder John Nightingale had difficulty keeping the company breathing and was forced to sell off its assets shortly after the event took place. The winners were never paid and individuals who had a financial stake in the business were left up in the air.

Some speculated that the reason Nightingale could not come up with the prize money was that he allowed too many pros to play for free rather than making them buy into the tournament. The Palms disbursed $450,416 in unpaid prize money to the winners after checks from the Poker Bowl bounced.

The other incident in the complaint occurred in August of 2007 after a tournament organized by Michael Eakman and Associates was not registered with the NGCB. The tournament was set up to benefit the Jewish Community Center of Southern Nevada, but Michael Eakman and Associates waited four months to pay the Jewish Community Center its share of the earnings.

According to a Palms spokesperson, the resort paid all of the prizes as soon as it learned of the complaint.

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Poker glossary:

NUT / NUTS - The best possible hand of a given class. Not a LOCK unless all cards have been dealt. The "nut flush" is the highest possible flush, but might still lose to, e.g., a full house. Usually used in Hold'em games.
STACKED [DECK] - A deck that has been arranged to give one player a huge advantage. Also: RIGGED.
OPEN-HANDED - A category of games characterized by a part of each player's hand being exposed.
POSSIBLE [STRAIGHT/FLUSH] - Up cards that quite possibly could lead to a straight and/or a flush.
BET - To put money into the pot, pursuant to the rules of the game, thus maintaining a chance of winning the pot.
LEAK - To show one's hole cards (often unknowingly).

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