ResNo26-032.pdf

MISSOURI GAMING COMMISSION COMMISSION RESOLUTION NO. 26-032 REGARDING SETTLEMENT OF SPORTS WAGERING DISCIPLINE PENN SPORTS INTERACTIVE, LLC May 20, 2026 WHEREAS, the Missouri Gaming Commission issued proposed discipline against Penn Sports Interactive, LLC ("Licensee") as the holder of a Mobile sports wagering license; and WHEREAS, Licensee and the Commission have come to a settlement concerning the issues presented in the proposed discipline and Licensee shall pay a $2,500 fine pursuant to the terms of the Settlement Agreement (a copy of which is attached hereto); NOW, THEREFORE, BE IT RESOLVED, that the Commission hereby approves the Settlement Agreement concerning Penn Sports Interactive, LLC; and BE IT FURTHER RESOLVED that this Settlement Agreement shall become effective upon the date of this resolution and be considered a final decision of the Missouri Gaming Commission. Commissioner Missouri Gaming Commission ·nm IN MISSOURI GAMING COMMISSION In llli: Penn Sports Interactive, LLC ) ) DC - --- ) License Number: MGC34l249 · ) SETTLEM~NT AGlU:EMENT The Missouri G:iming Commission takes up the above matter for consideration and disposition. The Missouri Oaming Commission ("M(,C" or "Commission"), by Director Michael A. Learn, and Penn Sports Interactive, LLC ("Penn' or' Licensee"), by and through counsel, have reached a settlement in this matter and have wnsented to the issuance of this Settlement J\gn:cr111.:nl. .Findings of Fact I. The Missouri Gaming Commission is a stale commission created under Chapter 313, RSMo (2016) 1 , with jurisdiction over gaming adivitics in the state of Missouri. Article Ill, Section 39(g) of the /vtis.rnuri Conslilution delegated authority to the Commission to regulate sports wagering in the state of Missouri. 2. The Commission issued a Mobile license to Penn Sports Interactive, LLC to conduct mobile wagering activities in the state. 3. As the holder of a Mobile license, I .icensee is subject lo the provisions of Article 111, Section 39(g) of the A4is.wmri Conslitulion and the regulations promulgated thereunder by the Commission. 4. Missouri's catalog of approved events states that NFL regular season award markets arc pcnniltcd but any wagers must be placed prior to the start of the first game on the last 1 All statutory references ar1: to RSMo (2016) unless otherwise specified. day of the regular season. Any wagers aficr this <lead line are not in the catalog of approved l:Vcnls and arc therefore considered prohibited wagers. Rased on the NFI , schedule, th<.: deadline was prior to I :00 p.m. eastern time on January 4, 2026. 5. On January 6, 2026, Penn's compliance officer notified MGC that it had allowed wagering on NFL season award markets until 9:42 a.rn. that day. 6. Penn's notification indicated that the markets had initially been turnc<l off but a trade team member had inadvertently n:aetivalcd the markets, which allowed continued wagering. 7. On January 7, 2026, Penn submitted a Compliance Incident Report which indicated that the; markets had never bt:en turned off The report indicated that the trading team did not follow established guidance from the compliance team rl:garding the deadlines for wagering on the awc1rd markets. The report provided a different explanation than what ha<l initially been explained lo MGC . 8. During the lime period after the I :00 p.m. eastern deadline and until the markets were turned off, Penn accepted fourteen (14) wagers for a total of$13,102. 02. 9. On January 9, 2026, all affected wagers were voided by Penn . or I 0. On January 22, 2026, the Commission sent a Notice Investigation to Penn outlining the violations in this matter. 11 . On February 5, 2026, Penn acknowledged the Notice of Investigation, accepted responsibility for the errors, and outlined additional safeguards to prevent such occurrences in the future. 12. Penn acknowledges and understands that it has the right to eonsult counsel at its own expense. 13. Penn admits the facts alleged by tlw Commission and outlined in this Settlement 2 Agreement and further acknowledges that this agreement resolves the outstanding issues in this disciplinary action. 14. Penn acknowledges that the Missouri Gaming Commission has jurisdiction and authority to discipline its Mobile sports wagering license. no) 15. Penn has heen advised that it has thirty days lo review the documentation provided and consider the proposed settlement offe r. 16. Pcnn stipulates and agrees to waive any rights it may have to a hearing before the Administrative Hearing Commission or the Commission and any rights to seek judkial review or other challenge or contest of the terms and conditions of' this Settlement Agreement and forever releases and holds harmless the Commission, and the Executive Director and his agents from nil liability and claims arising out ot: pertaining lo, or relating to this matter. 17. The Missouri Gaming Commission stipulates and agrees to waive any rights it may have lo a hearing before the Administrative Hearing Commission or the Commission and any rights to seek judicial review or other challenge or contest of the terms and conditions of this Scttlerncnt Agreement and forever releases and holds harmless Penn from all liability and dairns arising out of~ pertaining lo, or relating to this matter. Such stipulation does not prevent investigation into future allegations against Penn should they arise. 18. Eaeh signatory to this Settlement Agreement certifies by signing that he or she is fully authorized, in his or her own capacity, or by the named party he or she represents lo aceepl the terms and provisions of this Settlement Agreement in their entirety, and agrees, in his or her personal or representational capacity, to be bound by the terms of this Sclllement Agreement. 19. Tht: Commission is authorized to settle this matter and enter into this Consent Order in the public interest pursuant to §§ 536.060 and 621 .045, RSMo. 3 lklcv~mt Law 20. Article Ill, Section 39(g)9, provides, in relevant part, as follows: Subject to and consistent with the terms of' this section, the Commission shall have the power to adopt and enforce commercially reasonable rules, including emergency rules, to implement the provisions of this section . ... The- Commission shall [adopt a regulatory framework I including, but not limited to: * * * k. Establishing tines, placing licensees on probation, and revoking licenses for violations of this section. The Commission may impose lines upon any person holding, or required to hold, a license or approval under this section or the rules subsequently adopted. 21. 11 <: SR 45-20.150(1) states that licensees shall hc subject to the imposition of fines, license probation, license suspension, license revocation, or other disciplinary action for any violation or Article Ill, Section 39(g) of the At/issouri Co11stit11tio11, law, or regulation. 22. 11 CSR 45-20.150( I )(Q) stales that grounds for disciplinary action include facilitating, enabling, or participating in sports wagering other than in aceordam:c with Article Ill, Section 39(g) of the Missouri Co11stit11tio11 and laws, rules, and regulations of this state or any other stale or country. 2J. 11 CSR 45-20.150( I )(F) stales that grounds for disciplinary action also include misrepresenting any information to the Commission. 24. 11 CSR 45-20.340(1) states that Retail and Mobile licensees may only accept wagers on events approved by the Commission and published in the catalog of approved events. 25. 11 CSR 45-20.360(2)(E) states that Retail and Mobile licensees shall not allow wagering on any event or portion of an t:vcnt, or wc1gcring by type or form, which has not been approved by the Commission. 4 26. Penn acknowledges ,md understands that under Article Ill, Section 39(g) of the Missouri Cunsliluliun and 11 CSR 45-20, the Commission can discipline Penn's Mobile license for sueh actions that violate Article 111, Section 39(g), 11 CSR 45-20.340, and 11 CSR 45-20.360 by permitting wagers both on events and in a manner not approved by the Commission and providing conllieting accounts of why such wagers were permitted by l'enn. OROF:R IT IS ACiREED AND S'l'IPULATlm THAT as follows : I. Penn Sports Interactive, 1.1.C will pay a fine of $2,500.00 made payahle to the Missouri Gaming Commission within thirty (30) days of the Missouri Gaming Commission's c1pproval of this Settlement Agreement; and 2. Penn Sports lntcraelivc, LLC will agree lo obey all laws, including, hut not limited to those concerning the operation requirements for Mobile licensees, and will cooperate f'ully with the MGC in all investigations and inquiries into its wagering operations and license. Missouri Gaming Commission 5 CONSENT ANO WAIVER OF HEARING The undersigned persons understand and acknowledge that Penn Sports Interactive, LLC has the right to a hearing, but that it has waived this right and consents to the issuance of the Order in this Settlement Agreement. 4/22/2026 Penn Sports Interactive I.I C Date Uy: Adam Kates_ ___ 1818 Market Street, Floor 13 Philadelphia, PA 19103 Nikki 0. Evans Ueneral Counsel Missouri Gaming Commissiou P.O. Rox 1847 3417 Knipp Drive Jefferson City, MO 65109 Missouri Gaming Commission P.O. Box 1847 3417 Knipp Drive Jefferson City, MO 65109 6