BEFORE THE GAMING CONTROL BOARD PRESQUE ISLE DOWNS, INC. COMMONWEALTH OF PRESQUE ISLE DOWNS AND CASINO GAMING ID NO. 1350 IN RE: UNDERAGE GAMING BCC Referral N0. PI-E-0531223-17 CONSENT AGREEMENT AND STIPULATION OF SETTLEMENT THIS CONSENT AGREEMENT AND STIPULATION OF SETTLEMENT is made and entered into by the Commonwealth of Gaming Control Board (?Board?), an independent administrative board of the Commonwealth of Of?ce of Enforcement Counsel and Category 1 Licensee Presque Isle Downs, Inc. d/b/a Presque Isle Downs and Casino (?Presque Isle?). Presque Isle and OEC collectively are referred to as the ?Parties?; and WHEREAS, Presque Isle has its principal place of business at PO. Box 10728, 8199 Perry Highway, Erie, 16514 and is the holder of a Category 1 slot machine license as approved by the Board on February 27, 2008, and renewed by Board Order on July 20, 2011 and September 2, 2015 and WHEREAS, OEC is the prosecutorial body established by The Race Horse Development and Gaming Act (?the Act?) at 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, Presque Isle 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 58 Pa. Code 493a. which provides for parties to propose consent agreements at any time prior to the entry of a ?nal order; and WHEREAS, pursuant to 4 1102(1), the primary objective 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 unlaw?il; and WHEREAS, pursuant to 4 1102(8), strictly monitored and enforced control over all limited gaming authorized by this part shall be provided through regulation, licensing and appropriate enforcement actions of speci?ed locations, persons, associations, practices, activities, licensees and permittees; and WHEREAS, pursuant to 4 1207(1), the board shall have the power and its duties shall be to deny, deny the renewal, revoke, condition or suspend any license or permit provided for in this part if the board ?nds in its sole discretion that a licensee or permittee under this part, or its of?cers, employees or agents, have furnished false or misleading information to the board or failed to comply with the provisions of this part or the rules and regulations of the board and that it would be in the public interest to deny, deny the renewal, revoke, condition or suspend the license or permit; and WHEREAS, pursuant to 58 Pa. Code the Board will not issue or renew a license, permit, certi?cation or registration unless the Board ?nds, inter alia, that the applicant has ful?lled each condition set by the Board or contained in the Act, including the execution of a Statement of Conditions; and WHEREAS, pursuant to 58 Pa. Code and an individual who has applied for the issuance or renewal of a license, permit, certi?cation, registration or authorization shall execute a Statement of Conditions in the manner and form required by the Board. The execution of the Statement of Conditions constitutes the acceptance of each provision contained in the Statement of Conditions and failure to fully comply with any provision contained in an executed Statement of Conditions constitutes a violation and may result in Board-imposed administrative sanctions, up to and including revocation, against the individual or entity to whom the license, permit, certi?cation, registration or authorization was issued; and WHEREAS, pursuant to 4 1202(a)(1) of the Act the Board is responsible for ensuring the integrity of table games and has general and sole regulatory authority over every aspect of the authorization, operation and play of table games; and WHEREAS, pursuant to 4 1518(a)(l3) of the Act, ?[ilt shall be unlaw?il for an individual under 21 years of age to enter and remain in any area of a licensed facility where slot machines are operated or the play of table games is conducted, except that an individual 18 years of age or older employed by a slot machine licensee, a gaming service provider, the board or any other regulatory or emergency response agency may enter and remain in any such area while engaged in the performance of the individual?s employment duties,? and WHEREAS pursuant to 4 1207(8) of the Act, the Board shall have the power and its duties shall be to ?[r]equire that each licensed gaming entity prohibit persons under 21 years of age from operating or using slot machines or playing table games,? and WHEREAS, pursuant to 58 Pa. Code individual under 21 years of age may not enter or be on the gaming floor of a licensed facility except that an individual 18 years of age or older who is employed by a slot machine licensee, a gaming service provider, the Board or other regulatory or emergency response agency may enter and remain in that area while engaged in the performance of the individual?s employment duties; and WHEREAS, pursuant to 58 Pa. Code individual under 21 years of age, whether personally or through an agent, may not operate, use, play or place a wager on, a slot machine in a licensed facility,? and WHEREAS, pursuant to 58 Pa. Code person holding a license, permit, certi?cation or registration issued by the Board is prohibited from permitting or enabling an individual to engage in conduct that violates or (relating to exclusion requirements); and WHEREAS, the Parties do not dispute the jurisdiction of the Board to address matters concerning the prevention of underage individuals from gaming in casinos; 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, agree, and present to the Board for its consideration, the following: STIPULATION OF FACTS Count 1: PIE-052452347 On November 20, 2017, at approximately 4:30 am, Presque Isle Security noti?ed the Bureau of Casino Compliance of an underage violation that occurred at Presque 1516 Casino (?Presque Isle?). The underage individual, who was nineteen (19) years of age, entered Presque Isle through the Buffet Entrance at approximately 8:25 pm. on November 19, 2017 along with two companions. The underage individual was left by her companions at the Brew Brothers Restaurant. At approximately 9:38 pm, a server spoke with the underage individual and served her a draft beer which the underage individual consumed. The underage individual?s companions returned and they all entered the gaming ?oor at approximately 10:51 pm, at which time Presque Isle?s security personnel did not request identification from the underage individual. The underage individual was not observed gaming however she was on the gaming floor until approximately 11:59 pm. when she was approached by security and escorted off the gaming floor. The underage individual was on the gaming ?oor for approximately one (1) hour and eight (8) minutes. After she was escorted off the gaming floor, she was escorted to the State Police of?ce. At approximately 12:57 am, on November 21, 2017, the underage individual departed the premises. The underage individual was cited by State Police for Unlawful to Permit Persons Under 21. Presque Isle issued verbal warnings to the Brew Brothers Server who served the underage individual anvalcoholic beverage and to the Security Officer who allowed the underage individual to access the gaming ?oor. Count 2 On December 27, 2017, at approximately 8:45 pm, the Bureau of Casino Compliance was noti?ed of an underage violation that occurred at Presque Isle Casino (?Presque Isle?). The underage individual, who was eighteen (18) years of age, entered Presque Isle through the West Entrance at approximately 8:37 pm. on December 27, 2017 along with a companion. When the underage individual provided identi?cation, security personnel requested a supervisor to review the identi?cation when it was not successfully read by the scanner. At approximately 8:40 pm, a security supervisor arrived, visually veri?ed the identi?cation of the underage individual, and allowed the underage individual access to the gaming floor after comparing the fraudulent identi?cation to similar temporary out-of?state identi?cation cards. The Supervisor, after allowing the underage individual access to the gaming floor, sought him back out to double check the identi?cation. Once on the gaming floor, the underage individual and his companion gamed at table BJ20 until approximately 8:50 pm. At approximately 8:51 pm, security made contact with the underage individual and his companion to re-verify the underage individual?s identification. At approximately 8:55 pm, the State Police arrived at table B120 and escorted the underage individual and his companion off the gaming ?oor and escorted them to the State Police Of?ce. The underage individual was on the gaming floor for approximately seventeen (17) minutes. At approximately 9:31 pm, the underage individual and his companion were escorted back across the gaming floor by State Police to Post A where they exited the casino. The underage individual was cited by State Police for Unlawful to Permit Persons Under 21 and both the underage individual and his companion were issued management exclusions from the casino. Presque Isle issued verbal corrective action to the Security Supervisor that gave the underage individual access to the gaming ?oor. Count 3 PIE-056638048 On May 15, 2018, at approximately 7:15 am, the Bureau of Casino Compliance was notified of an underage patron on the gaming ?oor at Presque Isle Casino (?Presque Isle?). The underage individual, who was a twenty (20) year old male, entered Presque 1816 through the North Doors at approximately 12:06 am. on May 15, 2018 accompanied by an unknown female. He provided identi?cation to a security officer who did not scan the identi?cation. The security of?cer initially called for an identification check due to the fact that the identi?cation provided was that of a forty?two (42) year old female, but then allowed the underage individual to proceed onto the gaming floor at approximately 12:08 am. without any additional verification after the underage individual explained that he was in gender transition. The underage individual wandered around the gaming ?oor and engaged in conversation with a Pit Manager at approximately 12:52 am. He did not engage in gambling until placing a $50 wager on spot 1 at BI 28 at approximately 3:20 am. The underage individual lost the hand and was observed placing another $50 wager, this time on spot 4 at B1 30 at approximately 3:48 am. He placed another $50 wager at 3:49 am. The underage individual did not engage in further game play but remained on the ?oor until approximately 6:13 am. when he exited the casino through the North Entrance and sat in a vehicle until approximately 6:21 am. At approximately 6:22 the underage individual entered the casino again through the North Entrance and was challenged by the security of?cer who checked the identi?cation provided by the underage individual and allowed him access to the gaming ?oor. The underage individual did not engage in any further game play but remained on the gaming ?oor until approximately 7:01 am, when he entered the In?Caf?, which is off the gaming floor area. At approximately 7:02 am, the underage individual attempted to re-enter the gaming ?oor through the Elevator Area and, because he did not have a wrist band, security personnel asked for, and received, identi?cation from the underage individual but it was again the identi?cation of a forty-two (42) year old female. The underage individual proceeded back to BI 28, leaving the identi?cation with the security of?cer and disregarding the security of?cer?s instruction that he wait. A moment later, a security manager and State Police made contact with the underage individual at BI 28. At approximately 7:14 am, the underage individual was escorted to the State Police Of?ce. He exited the casino at approximately 7:52 am. on May 15 2018. The underage individual was cited by State Police for Unlawful to Permit Persons Under 21 to Wager/Play or Attempt to Play Slots/Games, and was issued a management exclusion from the casino. Presque Isle issued Written Warnings to the ?rst two Security Of?cers who gave the underage individual access to the gaming ?oor. Count 4 On August 7, 2018, at approximately 10:00 pm, the Bureau of Casino Compliance was notified of an underage patron on the gaming ?oor at Presque Isle Casino (?Presque Isle?). The underage individual, who was nineteen (19) years of age, entered Presque Isle with a male companion through the South Horse Track Entrance at approximately 6:36 pm. on August 7, 2018. She presented identi?cation and received a blue wristband indicating her age was between eighteen (18) and twenty (20) years of age. The underage individual entered the gaming ?oor at approximately 8:54 pm. through the Escalator Security Post from the Buffet Hallway. The security of?cer stationed there did not challenge her for identi?cation. At an unknown time prior to entering the gaming ?oor, the underage individual had removed her blue wristband that indicated her age was between eighteen (18) and twenty (20). The underage individual observed others engaged in slot play until approximately 9:51 pm, when she was observed pressing the slot machine button herself and placing a wager. The underage individual gamed until approximately 9:55 pm. She was approached by Security Personnel and denied having identi?cation and was escorted off the gaming ?oor. At approximately 9:58 pm, State Police arrived at the scene. At approximately 9:59 pm, the underage individual provided her identi?cation to the State Police which con?rmed she was nineteen (19) years of age. She was escorted to the State Police office where she remained until approximately 10:22 pm. when she was escorted out of the casino and left the property at approximately 10:34. The underage individual was cited by State Police for Unlawful to Permit? Persons Under 21 on the Gaming Floor of a Licensed Facility and issued a management exclusion from the casino. The Security Of?cer who gave the underage individual access to the gaming floor without challenging her for identi?cation was terminated. Count 5 On August 8, 2018, at approximately 12:45 pm, the Bureau of Casino Compliance was noti?ed of an underage patron on the gaming floor at Presque Isle Casino (?Presque Isle?). The underage individual, who was twenty (20) years of age, entered Presque isle through the North Doors at approximately 11:53 am. on August 8, 2018 without being challenged or asked for identification by a security of?cer. At approximately 12:09 pm, the underage male suspect was observed standing behind the chairs at Blackjack Table BJ 5 watching his father play. At approximately 12:17 pm, the underage patron sat down at Table BI 15 in seat 5 when his father exchanged green chips for $100 in red chips. The dealer handed the red chips to the underage patron at seat 5. The Dealer did not ask for identi?cation before handing the red chips to the underage patron. At approximately 12:18 pm, the underage patron placed a bet and continued gaming until 12:42 pm. when he ran out of chips. At approximately 1:00 pm, a Security Supervisor approached the underage patron and requested identi?cation. The underage patron went to his vehicle to retrieve his identification. At approximately 1:07 pm, the underage patron returned with his legitimate identi?cation and presented it to the Security Supervisor. The underage patron was escorted to the State Police Of?ce. The underage individual was on the gaming ?oor for approximately one (1) hour and seven (7) minutes. At approximately 1:27 pm, the underage individual was escorted back across the gaming ?oor by State Police to the Buffet Doors where he exited the casino. The underage individual was cited by State Police for Unlawful to Permit Persons Under 21 on the Gaming Floor of a Licensed Facility. Presque Isle issued a Final Warning to the Security Of?cer who initially gave the underage individual access to the gaming floor. PRIOR ENFORCEMENT ACTION This Consent Agreement represents the fourteenth, ?fteenth, sixteenth and seventeenth violations regarding underage individuals accessing the gaming ?oor at Presque Isle since the Board renewed Presque Isle?s Category 1 license on September 2, 2015. Since the renewal, The Office of Enforcement Counsel has issued eleven (ll) warning letters, held one (1) compliance conference, and entered into one (1) consent agreement regarding underage access/gaming violations at Presque Isle since its last renewal prior to the present consent agreement. TERMS OF AGREEMENT In consideration of the foregoing stipulated facts, and in full and final settlement of any and all claims or causes of action which could or might be brought under the Act or the regulations promulgated thereunder, whether against Presque Isle, or any of its owners, employees or agents arising out of the matters identified in the above-stipulated facts, the Parties do hereby further stipulate and agree that: 1. This Consent Agreement shall become final and effective only upon its approval by the Board; 2. Within five days of the Board?s Order approving this Consent Agreement, Presque Isle shall pay a civil penalty in the amount of forty-?ve thousand dollars to the Board; 3. Presque Isle shall reinforce its existing policies and provide training, guidance, and reinforcement to its employees, which will minimize the opportunity for similar incidents to occur in the future; 4. ithin' ?ve days of the Board?s Order approving this Consent Agreement, Presque Isle shall pay to the Board two thousand and fivevhundred dollars for the costs incurred by the Bureau of Investigations and Enforcement 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 Presque Isle; and 7. Presque Isle, 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, 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 instant matter or any subsequent proceeding. This Consent Agreement shall not preclude the Board, BIE or OEC from reviewing and considering any facts in any future proceeding relating to any application. for licensure or quali?cation of the licensee. Presque Isle 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 Of?ce of Enforcement Counsel ?,,..tumvst@ DATED. M/xs By: TAMARA J. HAKEN, ESQ. Ass'stant Enforcement Counsel lA/? DATED: Ill/.3 t7 . FREY HENDRICKS, ESQ. Compliance Of?cer ld rado Resorts, Inc. For Presque Isle Downs, Inc. d/b/a Presque Isle Downs and Casino lO