PGCB Fines Two Companies Over Breaches of Licensing Obligations

By jili tutorial · September 26, 2026

PGCB Fines Two Companies Over Licensing Violations: A Comprehensive Guide

Overview of Recent Enforcement Actions

The Pennsylvania Gaming Control Board (PGCB) has imposed significant financial penalties on two licensed gambling entities operating in the Keystone State. MGM Resorts International and CountR GmbH will collectively pay over $100,000 in fines for distinct breaches of regulatory obligations. This enforcement action underscores the PGCB’s commitment to ensuring strict compliance with Pennsylvania’s gambling laws and licensing requirements.

The Two Cases: Key Details at a Glance

MGM Resorts International – fined $50,250 for failing to submit a principal licensing application on time.
CountR GmbH – fined $50,000 for an unapproved change of control and failure to pay the required licensing fee.

Both fines were announced in a press statement on the PGCB’s official website, detailing the specific violations and the conditions imposed.

Case 1: MGM Resorts International – Late Principal Licensing Application

What Constitutes a Principal Licensing Breach?

Under the Pennsylvania Race Horse Development and Gaming Act, any officer or director who performs duties requiring a principal license must submit a completed multi-jurisdictional personal-history disclosure form and a Pennsylvania supplement within 30 days of commencing those duties. Failure to do so effectively means the individual is working without a valid license, which is a serious regulatory violation.

MGM’s Violation

The PGCB found that an unnamed employee at MGM Resorts International failed to file the required licensing paperwork on time. The regulator fined the company $50,250, but chose not to publish the employee’s name, likely to protect individual privacy while still holding the corporate entity accountable.

Why This Matters

Timely submission of principal licensing applications is not a bureaucratic formality—it is a core safeguard that ensures all key decision-makers in a gambling operation have been vetted and approved by the regulator. MGM’s lapse could have allowed an unlicensed individual to influence business decisions, undermining the integrity of the licensing system.

Case 2: CountR GmbH – Unapproved Change of Control and Unpaid Fees

Who is CountR GmbH?

Based in Germany, CountR GmbH provides kiosks and ticket-redemption units to regulated land-based casino venues in Pennsylvania. The company holds both slots and table games licenses from the PGCB, making it a critical vendor in the state’s gambling ecosystem.

The Violations

The PGCB flagged two specific issues:

Unapproved change of control – Any alteration in ownership, management, or key personnel that affects a license must be pre-approved by the Board. CountR failed to obtain such approval.
Failure to pay required licensing fees – The company neglected to remit fees associated with its license, a basic financial obligation of all regulated entities.

Conditions Imposed by PGCB

As part of the settlement, CountR agreed to several compliance measures:

Confirm that all information previously provided to the regulator about its principal affiliates, subsidiaries, key employees, permittees, and registrants is accurate.
Immediately notify the PGCB if any suspicion arises that false information may have been submitted.
Provide such notifications on a confidential basis to protect sensitive business information.

These conditions are designed to prevent future lapses and ensure ongoing transparency.

Understanding the Penalty Structure

Company	Fine Amount	Primary Violation
MGM Resorts International	$50,250	Late filing of principal licensing application
CountR GmbH	$50,000	Unapproved change of control + unpaid licensing fees

The total fines exceed $100,000, reflecting the PGCB’s view that both offenses are serious breaches of regulatory trust.

Broader Implications for Licensed Gambling Entities

What Operators Can Learn

This enforcement action serves as a reminder that the PGCB actively monitors compliance for all licensees—from international vendors to casino giants. Key takeaways include:

Principal licensing deadlines are strict. Any officer or director must file within 30 days of starting their role.
Changes in control must be pre-approved. Whether through mergers, acquisitions, or internal restructuring, any shift in ownership or key personnel requires regulatory clearance.
Fee payments are non-negotiable. Even administrative oversights can lead to substantial fines.

How to Avoid Similar Penalties

Establish internal compliance calendars with reminders for all licensing and fee deadlines.
Designate a compliance officer to track principal applications and control changes.
Regularly audit all information submitted to the PGCB for accuracy.
Communicate proactively with the regulator—voluntary disclosure of potential issues often leads to more lenient treatment.

Conclusion

The PGCB’s actions against MGM Resorts International and CountR GmbH highlight the high stakes of regulatory compliance in Pennsylvania’s gambling market. While the fines themselves are substantial, the real cost lies in reputational damage and the risk of further sanctions. All licensed entities—whether major operators or equipment suppliers—must treat licensing obligations with the seriousness they deserve.