Boyd fined $ 150,000 in Indiana for not disclosing review to executive
Posted on: Dec 24, 2021, 3:09 a.m.
Last update on: December 24, 2021, 3:57 a.m.
Boyd Gaming has agreed to pay a fine of $ 150,000 to the Indiana Gaming Commission (IGC). This was after the regulatory agency determined that the Las Vegas-based gaming company failed to reveal that a former executive and licensee was under internal investigation.
The former executive had had a sexual relationship with another executive at the company, which went against Boyd’s anti-fraternization rules. This is according to an order approved at the committee meeting on Tuesday,
The problem emerged on June 23. It was at this point that Boyd informed the IGC that he had made a deal with the Pennsylvania Gaming Control Board (PGCB) not to notify the PGCB of the incident.
The PGCB fined Boyd $ 150,000 at its June meeting.
In Indiana, Boyd operates the Belterra Casino Resort in Florence and the Blue Chip Casino Hotel Spa in Michigan City.
Boyd punished retired principal for breaking policy
Indiana law requires casino licensees to notify the IGC when facing criminal, civil, or administrative proceedings. The law also requires notification when such actions are threatened.
Boyd’s board of directors received a formal notice on July 1, 2019 from a female executive who worked for the company at the time but wanted to leave, according to the order. A lawyer representing the female executive made several allegations in the letter, including that she was “forced to engage in inappropriate sexual activity” with a male executive. The male executive was not named in the letter.
The letter of demand led Boyd’s board of directors to form a special committee to investigate the claims.
Two months later, in September 2019, the male executive discussed his possible retirement with the CEO of the company. Eventually, this male executive became a subject of review by the special committee.
In early October 2019, the male leader admitted a consensual relationship with the female leader. The relationship took place about a decade before the investigation began, according to the IGC order.
A report of the special investigation was discussed at Boyd’s board meeting on December 5, 2019. This report concluded that the male executive had violated the company’s policy against fraternization. However, he was unable to determine whether the female executive had coerced into the relationship.
Boyd viewed the matter as an internal matter and the male executive retired on December 9, effective six days later. The IGC order said the company had denied the male executive their annual cash bonus. He also did not receive his shares of career restricted shares.
Disclosure was necessary, according to IGC
Although the IGC order did not name the man or woman, it did indicate that the man served as Boyd’s executive vice president, secretary and general counsel. A search of the company’s Securities and Exchange Commission disclosures found that Boyd had reported that Brian Larson had retired from that position on the same date.
Boyd reported Larson’s retirement to the IGC on December 16, 2019, while holding a Level 1 license in Indiana. However, that report did not indicate that Larson was part of a special investigation and did not disclose any of the findings of that examination.
As a result, the license holder failed to report to the Commission important information about a Level 1 license holder that could call into question their suitability to practice in Indiana ”, indicated the order of the IGC. “Even if the male executive gave up his license due to his retirement, this important information should have been provided to the Commission, thus giving him the opportunity to conduct a suitability review.”
A Boyd spokesperson said Casino.org that the company had nothing more to add on this matter.