Boomtown to pay $40,000 fine | NevadaAppeal.com

Boomtown to pay $40,000 fine

Cy Ryan
Special to the Nevada Appeal

Boomtown of Reno has agreed to pay a $40,000 fine for violating the Internet gambling rules with its ties to two foreign companies that offered gaming websites.

Robert Joseph Medeiros, chief executive officer of the club, has signed a stipulation with the Nevada Gaming Control Board and admits Boomtown was guilty of misconduct but denies it had any intention to ignore the law.

The settlement, which must be approved by the Nevada Gaming Commission, calls for Boomtown to return $1,621 it received in commission fees from companies based in Curacao which offered wagering for cash on 11 of its Internet websites. That money will go to the Reno Problem Gaming Center.

Boomtown must also provide training to its employees to avoid similar violations in the future.

Boomtown didn't operate these cash for play gaming websites. It decided it was too expensive to offer free games on its website. So it contracted Affiliate Edge and Deck Media to allow the free games to be paid. The board said Boomtown advertisement was on three of the cash for pay websites and it received a commission for money lost.

Boomtowm said in the stipulation it didn't operate an unlicensed interactive gaming system in Nevada but admitted to the allegations outlined in the complaint.

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The stipulation admits it "did, in fact, expose unlicensed interactive gaming systems" to its customers. But it said its workers never knowingly violated any Nevada or federal laws.