In a significant development, the South Dakota State Commission on Gaming has revoked Gary Aaron King’s Deadwood Casino gambling license.
This decision stems from allegations of defrauding local universities, surpassing $1.4 million. An investigation into King’s license suitability revealed he had allegedly collected premiums from universities to insure athletes against injuries but didn’t remit payments to insurance companies. Notably, state gaming laws permit license revocation for violations unrelated to gaming.
Recently, Rushmore Gaming LLC had granted King, a part owner of companies associated with the Midnight Star casino in Deadwood, a license. This move follows a license revocation in insurance dealings and triggers a civil lawsuit by the affected universities.
The Allegations and Investigation of Deadwood Casino
At the heart of this decision lies a meticulous investigation into King’s suitability to hold a gambling license. The startling revelations surrounding the alleged fraudulent activities involving premium funds instigated this thorough probe.
It was uncovered that King had purportedly amassed a staggering $1.4 million in premiums from universities. Ostensibly intended to insure athletes against potential injuries. However, shockingly, these collected premiums, ostensibly earmarked for insurance coverage, were never remitted to the insurance companies. Even more distressing was that this deceptive scheme included premiums for as many as 625 South Dakota athletes, underscoring the magnitude and audacity of the purported fraud.
Legal Standpoint and License Revocation
The revocation of King’s gambling license is a powerful demonstration of the strict adherence to legal standards within the state’s gaming industry. The South Dakota State Commission on Gaming, empowered by state gaming laws, wielded its authority to revoke King’s license. King’s egregious violation of state laws unequivocally prompted this disciplinary action. Notably, these violations were not directly associated with gaming activities.
Illustrating that breaches of law, irrespective of the domain, can lead to the revocation of a gaming license. This crucial stance reinforces the state’s commitment to upholding legal integrity and ethical conduct within the gambling sector.
King’s Intricate Involvement and Recent Licensing
Adding a layer of complexity to this unfolding narrative is King’s intricate involvement in the ownership structure of various private companies, some of which held ownership stakes in the esteemed Midnight Star casino in Deadwood. The gravity of King’s alleged actions reverberates within this intricate web of associations. Surprisingly, despite the unfolding investigations and allegations, the South Dakota State Commission on Gaming had, in February 2022, granted King a fresh license. This license authorized him to act as a director for Rushmore Gaming LLC, particularly in the context of the company’s sports-wagering application. This raises questions about the regulatory process and scrutiny of licensing decisions.
The Catalyst for Investigation and Legal Redress
On March 10th, the state’s Labor and Regulation Secretary, Marcia Hultman, pivotal inking of a decision, initiated the investigation into King’s gaming license. This decisive act revoked King’s resident insurance producer license, catalyzing the subsequent chain of events leading to the broader investigation. The affected universities have taken a resolute stand after these alleged fraudulent activities. They have initiated a civil lawsuit to reclaim the substantial financial losses they incurred due to King’s purported actions.
This unfolding narrative reverberates through the corridors of legality, ethics, and the gaming industry. It serves as a striking reminder of the imperative to uphold laws and regulations meticulously. Preserving the sanctity and credibility of the gaming sector. The fallout from this episode will undoubtedly resonate as a cautionary tale, shaping the industry’s future landscape.