Trouble for AWI

20 December 1999
American Wagering, Inc. (AWI) announced Friday that it has been served with a complaint for disciplinary action by the Nevada State Gaming Control Board for taking wagers from U.S. bettors.

AWI is a licensed land-based sportsbook operator in the state of Nevada. Megasports Australia is licensed in Australia to accept Internet wagers, however the site has a policy in which no wagers are to be taken from U.S. bettors.

According to an AWI press release, the complaint alleges that American Wagering, Inc. (AWI) through its subsidiary Mega$ports ACT Pty. Ltd. (Megasports Australia) had accepted 12 wagers placed by an agent of the Board between July 23 and August 4, 1999 totaling $120.00.

The wagers were placed through a Canadian Internet service provider. The complaint states that AWI violated its internal controls when it failed to obtain the proper identification of the Board agent who opened the wagering account. The Board alleges that by allowing Mega$ports Australia to accept these wagers, AWI failed to exercise discretion and sound judgment to prevent incidents which might reflect on the repute of the state of Nevada and act as a detriment to the development of the gaming industry. The complaint alleges that the conduct of AWI constitutes an unsuitable method of operation under the Nevada Gaming Commission Regulation 5.011.

The Board has requested that AWI be fined a monetary sum pursuant to the parameters defined at Nevada Revised Statue 463.310(4) for each separate violation and asked the Nevada Gaming Commission to take action against AWI's licenses pursuant to the parameters defined at the Regulation Statue 463.310(4). The Company has 20 days to answer the allegations, deny them, ask for a hearing or negotiate a settlement.

The company says it intends to challenge the complaint.

IGN will deliver further coverage on the investigation as more details become available.