?muue/ 9/ Eco" M14 GREENWOOD GAMING COMMONWEALTH OF ENTERTAINMENT, INC. GAMING CONTROL BOARD IN RE: Progressive Slot Machine . Violations GAMING ID NO. 1239 BCC PP-E-0523923-1 7, PP-E-0536287-18, 18 CONSENT AGREEMENT AND STIPULATION OF SETTLEMENT THIS CONSENT AGREEMENT AND OF SETTLEMENT is made and entered into, pursuant to authority granted under the Race Horse . Development and Gaming Act by the Of?ce of Enforcement Counsel and Greenwood Gaming and Entertainment, Inc. d/b/a Parx Casino (?Greenwood?). Greenwood and OEC collectively are referred to as the ?Parties;? and WHEREAS, Greenwood is a Category 1 licensee under the Act and an enterprise organized and existing under the laws of Delaware and at all times referenced herein, has its principal place of business at 2999 Street Road, Bensalem, 19020. Greenwood is the holder of a Category 1 slot machine license as approved by the Board on December 20, 2006; and WHEREAS, OEC is the prosecutorial body established by 4 1517(a.2) and has the power and duty to initiate proceedings for administrative violations of the Act pursuant to section of the Act; and WHEREAS, Greenwood and OEC, through their authorized representatives whose signatures are af?xed hereto, have investigated the events that are the subject of this Consent Agreement (?Events?), have conferred extensively on the Events, and now desire to conclusively and amicably resolve all matters arising out of the Events, and enter into a Consent Agreement before the adjudication of a Complaint, pursuant to 59 Pa. Code 493 a. which provides ?[pjarties may propose consent agreements at any time prior to the entry of a ?nal order;? and WHEREAS, pursuant to 4 1102(1), the primary object of the Act to which all other objectives and purposes are secondary is to protect the public through the regulation and policing of all activities involving gaming and practices that continue to be unlawful; and WHEREAS, pursuant to 4 ?1202(a)(1), the board shall ensure the integrity of the operation of slot machines, table games, table game devices and associated equipment and shall have sole regulatory authority over every aspect of the authorization, operation and play of slot machines and table games; WHEREAS, pursuant to 58 Pa.Code a slot machine that offers either a new progressive jackpot or undergoes a modi?cation or Random?access Memory clear of an existing progressive jackpot may not be made available for play by the public until the slot machine has been tested and certi?ed by the Bureau of Gaming Laboratory Operations. For purposes of this subsection, a modi?cation includes any change in the software, hardware, including controllers, and any associated equipment that relates to progressive functionality. WHEREAS, pursuant to Section 461a.12(f) of Parx Casino?s approved internal controls, if a slot machine that offers either a new progressive jackpot or undergoes a modi?cation or RAM clear of an existing progressive jackpot, Parx Casino will not make that slot machine available for play by the public until the slot machine has been tested and certi?ed by the Bureau of Gaming Laboratory Operations. For the purposes of this subsection, a modi?cation includes any change in the software, hardware, including controllers, and any associated equipment that relate to progressive ?mctionality. WHEREAS, the Parties do not dispute the jurisdiction of the Board; and WHEREAS, the Parties now seek to enter into this Consent Agreement as a compromise of any disputed claims and in consideration of the Parties waiving, releasing, and forbearing any regulatory dispute. NOW, THEREFORE, the Parties stipulate and agree, and present to the Board for its consideration, the following: STIPULATION 0F FACTS 9.92m On or about October 31, 2017, progressive slot machine was taken out of service by a slot technician at Parx Casino due to a game malfunction. Notes in the machine entry authorization log (hereinafter book for the slot machine reveal that a Read-only Memory change was made to the machine on November 1, 2017, and that a licensed dongle was needed to make the machine operational again. On November 2, 2017, a notation in the MEAL book revealed that the casino was awaiting parts to fix the machine. On November 10, 2017, a MEAL book notation was made that a slot technician at Parx Casino installed the licensed dongle and that the machine needed to be ?coin tested.? Surveillance footage from November 10, 2017, revealed that progressive slot machine D123 05/6609 was placed into service by a Parx Casino slot technician after the above-described work was completed at approximately 2:00 pm. and a patron began playing the machine forty (40) minutes later. On November 16, 2017, a Gaming Control Board (?Board?) Technical Field Representative noticed that the machine was operational as he was traversing the gaming ?oor. After discovering that the slot machine was operational, the Technical Field Representative immediately took the slot machine out of service as the machine had not been tested or certi?ed by any Board staff prior to being placed back into service on November 10, 2017. The Technical Field Representative checked the machine?s program identi?cation, operating system version, paytable and payout percentage as well as progressive settings on November 16, 2017. All settings on the machine were found to be on the Board approved list and were subsequently found to be in compliance. The Technical Field Representative approved the game for play after completion of his testing on November 16, 2017. Progressive slot machine was in continuous service and use at Parx Casino between November 10, 2017, and November 16, 2017, despite not being tested or certi?ed as required by Board regulations and Parx Casino?s approved internal controls. As a result, during the unauthorized period between November 10, 2017, and November 16, 2017, $13,961.00 was inserted into the affected slot machine and played by Parx patrons. Parx?s gross terminal revenue from the operation of the affected slot machine during the unauthorized period was $3,074.00, and the slot machine also registered a progressive jackpot on November 11, 2017, in the amount $1,006.78. 9.9.1.1113}. On January 13, 2018, at approximately 11:51 a progressive slot machine was taken out of service by a slot technician at Parx Casino due to a problem with the cashbox. Notes in the MEAL book for the slot machine indicate that the machine continued to have operational issues that led to a RAM error, which resulted in a RAM clear on or about January 14, 2018. The RAM error also affected the progressive meters of the machine. Surveillance footage from January 15, 2018, revealed that progressive slot machine was placed into service by a Parx Casino slot technician at approximately 7:49 am. despite the correct progressive meters for the machine being unavailable at the time. Approximately 62 minutes later, a patron approached progressive slot machine and began gaming at that machine. At 11:11 pm. on January 15, 2018, another slot technician arrived at progressive slot machine and took the machine out of service because the correct progressive meters remained unavailable at that time and the machine had not been tested and certi?ed by a Board Technical Field Representative. At 12:18 am. on January 18, 2018, a Parx Casino Slot Technician arrived at progressive slot machine to add the correct progressive meters to the machine. At the time the slot technician arrived at the machine, he found that the machine had been activated on January 15, 2018 a?er the RAM error. The slot technician immediately reported his ?ndings to the Parx Casino Surveillance Department who in turn self-reported the incident to the Board?s Bureau of Casino Compliance. On January 18, 2018, after the correct progressive meters had been added, the Technical Field Representative checked the machine?s program identification, operating system version, paytable and payout percentage as well as progressive settings. All settings on the machine were found to be on the Board approved list. The Technical Field Representative approved the game for play after completion of his testing. Progressive slot machine was in continuous service and use at Parx Casino between 7:46 am. on January 15, 2018, and 11:11 pm. on January 15, 2018, despite not being tested or certi?ed as required by Board regulations and Parx Casino?s approved internal controls. As a result, during the unauthorized period on January 15, 2018, $1,097.40 was inserted into the affected slot machine and played by Parx patrons. Pam?s gross terminal revenue from the operation of the affected slot machine during the unauthorized period was a loss of $6.30. The slot machine did not register any jackpots over the 15 hours of unauthorized operation on January 15, 2018. 29.11.11} On February 1, 2018, at approximately 6:17 pm, a Parx Casino slot technician replaced a wire in progressive slot machine DD0104 and coin tested the machine. After the coin test, the slot technician placed the slot machine into service even though the machine had not been tested by a Gaming Control Board Technical Field Representative. Further, the slot technician failed to connect progressive slot machine DD0104 to the progressive system so any play on the machine did not contribute to the progressive jackpot. Notes in the MEAL book for the slot machine indicate that the machine was taken out of service on February 3, 2018, when another slot technician discovered that the machine was not connected to the progressive system and had not been tested by a Technical Field Representative. A Parx Casino slot technician conducted a RAM clear of progressive slot machine DD0104 on February 4, 2018, and reconnected the machine to the progressive system, but the machine remained out of service until it was coin tested and inspected by a Technical Field Representative on February 6, 2018. The Technical Field Representative checked the machine?s program identi?cation, operating system version, paytable and payout percentage as well as progressive settings. All settings on the machine were found to be on the Board approved list. The Technical Field Representative approved the game for play after completion of his testing. Progressive slot machine DD0104 was in continuous service and use at Parx Casino between 6:25 am. on February 1, 2018, and 3:40 am. on February 3, 2018, despite not being tested or certi?ed as required by Board regulations and Parx Casino?s approved internal controls. As a result, during the unauthorized period between February 1 and February 3, 2018, $7,317.75 was inserted into the affected slot machine and played by Parx patrons. Parx?s gross terminal revenue from the operation of the affected slot machine during the unauthorized period was $70.86. No of?cial jackpot was hit during the unauthorized period. However, a patron reported that he hit a combination on the machine on February 2, 2018, that should have 1 resulted in a progressive jackpot but for the machine not being hooked up to the progressive system. As such, the patron?s win was limited to $1,000. The size of the progressive jackpot at the time the patron hit the Winning combination could not be determined. TERMS OF AGREEMENT In consideration of the foregoing stipulated facts, and in full and ?nal settlement of any and all claims, or causes or actions which could or might be brought under the Act or the regulations promulgated thereunder, whether against Greenwood, or any of its owners, employees or agents, arising out of the matters identi?ed in the above stipulated facts, the Parties do hereby ?irther stipulate and agree that: 1. This Consent Agreement shall become ?nal and effective only upon its approval by the Board; 2. Greenwood shall pay a civil penalty in the amount of twenty-two thousand ?ve hundred dollars ($22,500) to the Board; 3. Greenwood shall immediately institute policies and provide training, guidance, and reinforcement to its employees, which will minimize the opportunity for similar incidents to occur in the future; 4. Within ?ve days of the Board?s Order approving this Consent Agreement, Greenwood shall pay to the Board two thousand ?ve hundred dollars for the costs incurred by OEC, BIE and other related staff in connection with this matter; 5. If approved, the Board may make information public with respect to the terms and conditions of this Consent Agreement; 6. This Consent Agreement may be set aside by the Board if any term herein is violated by Parx; and 7. Greenwood, through its authorized representative whose signature appears below, has read and fully understands the terms of this Consent Agreement. This Consent Agreement is offered and, if approved by the Board, entered for settlement purposes only. If the Board determines not to approve the effectiveness of same, then this Consent Agreement and the representations and obligations contained herein shall be null and void, and neither Party nor any other person shall be entitled to use or rely on any portion hereof for any purpose whatsoever or to admit any portion hereof into evidence in the captioned matter or any subsequent proceeding. This Consent Agreement shall not preclude the Board, BIB or OEC from reviewing and considering any facts in any future proceeding relating to any application for licensure or quali?cation of the licensee. Greenwood expressly acknowledges and agrees that the Board reserves the right to take any actions that the Board, in its sole discretion, believes is necessary to protect the integrity of gaming in including the right to suSpend or revoke any license, approval or permit without limitation if any further violations occur or are subsequently discovered, all in accordance with the Act and the regulations promulgated thereunder. The undersigned consent to the form and entry of the above. Gaming Control Board Office of Enforcement Counsel DATED: By: DUSTIN L. MILLER Deputy Chief Enforcement Counsel ?wove-"e? e. 334 THOMAS WEE 0 Group MQQ Greenwood Gaming Entertainment, Inc. mam DATED: free we