Colorado gaming regulators are not messing around regarding sports betting service options. The state’s Limited Gaming Control Commission recently approved a $130,000 fine against WorldPay due to the company operating in April without a license.
The Colorado Division of Gaming Enforcement issued the fine after finding that WorldPay processed transactions from April 3-15 that amounted to over $9.8 million. The amount resulted in over $14,000 in fees.
Colorado Gaming Regulators Act Against WorldPay
WorldPay held a vendor license in Colorado that was valid through April 2. The Division of Gaming has stayed on top of licensing expirations and alerted the company in October, January, and February about the pending expiration date.
The company would have to reapply and receive approval to continue offering services in the state. Despite the many attempts to contact the company, WorldPay did not respond to regulators. On April 12, the company apparently contacted the Division but did not start the licensing process to reapply.
The next day, the Division issued a notice to sports betting operators stating the company is not licensed to do business in Colorado. Any operator that used WorldPay for sports betting transactions would violate state law. On the 13, WorldPay filled out a vendor application. By April 15, the company stopped services. It was not until April 21 that the company was approved again for licensing.
The shutdown affected several online sports betting companies, including WynnBET, Betfred, Caesars, Barstool, FanDuel, BetMGM, and others.
Sanctions Issued Against WorldPay
Colorado gaming regulators issued sanctions against WorldPay based on the licensing violation. The total fine of $130,000 was broken down into $10,000 per day of the violation. Only a portion of the fine, $65,000, was due within ten days of the agreement.
The remaining portion will remain in limbo for two years. WorldPay must pay the remaining $65,000 if found in violation again. Within the signed agreement between regulators and the payment processor, WorldPay must audit its internal licensing protocols and provide a plan of action to prevent this same issue from happening in the future. The Division of Gaming expects to receive this plan soon.
The Commission came to its decision during the last meeting in which WorldPay representative Joseph Watkins was in attendance. According to Watkins, the company wanted to clarify that it is not supportive of illegal operations in the state and that it failed to renew its license in time to continue with operations.
The Commission contacted the group several times. Commission Chairman Richard Nathan did not appreciate Watkins’s statement. He said that the company was knowingly offering services for several days without a license in place. Nathan commented that the issue was not an administrative mistake. It was the company choosing to continue to offer services despite not having an updated license.
Nathan stated that the Commission takes the issue very seriously and wants to maintain public confidence and trust via strict regulation. The chairman said that the Commission must act if an operator offers services without licensing in place and violates the law.
Watkins eventually spoke again, stating that the issue never happening again.