Valley Forge Casino fined $200,000

The Valley Forge Casino Resort has had a tough time before the Pennsylvania Gaming Control Board in the last 12 months.

The casino, backed by investor Ira Lubert, was fined a total of $200,000 Wednesday for two separate sets of violations, $50,000 for four episodes of underage gambling, and $150,000 for failing to properly submit promotions for regulatory review. The total matches a $200,000 fine against it last November for violating rules on special offers to attract customers. That was the highest single fine ever levied by the board.

"It's been a tough year for Valley Forge," board member David W. Wood said at Wednesday's hearing in Harrisburg. "I look forward to a brighter future."

In response to the troubles, Valley Forge has made significant management changes in its marketing and compliance departments, and brought in Philadelphia's Ballard Spahr L.L.P. as its outside law firm.

In April, Valley Forge also hired Bob Pickus, a veteran of Trump Entertainment Resorts Inc., as executive chairman.

"We are going to work very hard to make sure we are not in front of you again," Adrian R. King Jr., a Ballard Spahr attorney, told the board.

The four underage incidents that resulted in the $50,000 fine happened from January through May. In at least three of the cases, the underage individuals were caught by bartenders or servers.

Casinos are required to submit gambling-related promotions to the gaming board and the state Department of Revenue for a compliance review. Valley Forge failed to submit 173 of 383, or 45 percent, of the casino's promotions from March 31, 2012, and Dec. 31, 2013, a gaming board official said.

"There is not a good explanation. This was simply a clerical oversight. There was some change in staff," King told the board. "Someone dropped the ball and didn't do it." The board subsequently found that the 173 promotions did comply with the law.

Separately, between March 31, 2012, and Nov. 30, 2013, Valley Forge did not follow the rules on nongaming promotional rewards, the board said.

"Compliance and marketing functions have been completely integrated" to prevent further problems, King said.