04/29/2010 11:00PM

Scientific Games makes settlement in New Jersey


Scientific Games Racing, the bet-processing company, will pay $40,000 to the New Jersey Backstretch Benevolent Program and $13,500 to the New Jersey State Racing Commission to settle "alleged incidents inconsistent" with the state's racing rules, according to the commission and the company.

The settlement providing for the payments lists 16 specific incidents involving the company or its personnel that occurred between March 2003 and March 2009. The incidents include several instances in which the pools for races remained open after races had started. Other incidents included the purge of tickets from databases and other bet-processing problems, according to the settlement.

Frank Zanzuccki, executive director of the racing commission, said that an investigation by the racing commission did not uncover any evidence that any Scientific Games employees had acted deliberately to keep the pools open or had made bets capitalizing on the failure.

"If that had been the determination, it certainly would not have resulted in this type of settlement," Zanzuccki said.

Greg Cline, assistant general counsel for Scientific Games, said the incidents in which the pools remained open also involved failures by employees of racetracks and other bet-processing companies. Cline said that none of the incidents were caused by deliberate actions.

"We have seen no suggestion that any of [the] issues were caused intentionally by anyone," Cline wrote in response to e-mailed questions. "Our operating personnel in New Jersey have all received extensive training and refresher courses in handling these occasional incidents, and we have recommended processes to our customers to avoid them."

Scientific Games Racing is one of four companies that process bets for North American tracks. One of its largest customers is the New Jersey Sports and Exposition Authority, which owns and operates Monmouth Park and the Meadowlands.

Earlier this year, Scientific Games Racing's parent company reached an agreement to sell the bet-processing company to Sportech, a British gambling company. The transaction has not yet closed.