The Borgata Hotel Casino & Spa have decided to refund buy-ins to over 2,100 players who were affected by a counterfeit chip scandal (a.k.a. Chipgate) at the 2014 Borgata Winter Open. This decision comes on the heels of the New Jersey Division of Gaming Enforcement (DGE) completing a three-month investigation into the matter.
As some will recall, a $2 million guaranteed tourney was compromised when Christian Lusardi introduced fake chips into the event. After Borgata officials discovered the counterfeit chips, they shut down the tourney with just 27 players left in the field. Later, it was discovered that Lusardi tried to flush $2.7 million worth of fake chips down a hotel toilet. Both law enforcement and the DGE were contacted following the discovery.
Based on the Borgata’s actions in catching the fake chips and not trying to sweep the matter under the rug, the DGE’s investigation determines that everything was handled properly. Interestingly enough, the DGE didn’t require the Borgata to refund any of the players. However, Atlantic City’s most successful casino chose to do so anyways. You can see a breakdown of how the refunds will be distributed and more on the investigation below:
– The DGE found that 2,143 players who finished outside the top 450 spots came in contact with Lusardi during the tournament. Since their results could have been negatively impacted by Lusardi, their $560 buy-ins will be refunded ($1,200,080 total).
– Another 2,143 players did not play at a table with the cheater and therefore will not be reimbursed.
– Players who finished between 28th and 450th have already received prize money and won’t get any more compensation.
– The remaining 27 players who were still alive when the tourney was halted will each receive $19,323 ($521,721). This makes for a total of $1,721,801 in refunds.
What about the Lawsuit?
Last month, Egg Harbor Township resident Jacob Musterel filed a lawsuit on behalf of the 4,000-plus players who entered the $2m guaranteed Borgata Winter Open event. Musterel’s class-action lawsuit contends that the Borgata failed to properly supervise the tournament and asks that buy-in fees for every player be returned along with travel expenses.
Given that the Borgata have already made their decision on refunds, they’re not going to suddenly give out travel money and buy-in refunds to everybody. This is especially the case when you consider the findings from the DGE investigation. So count on this matter being resolved in court later.
Did the Borgata do the Right Thing?
What Christian Lusardi did in the $2 million tournament was no doubt a disgraceful act that affected thousands of other players. And he obviously did some planning beforehand to pull this stunt off. So it’s not like he was making it easy for Borgata officials to catch the counterfeit chips.
The good thing is that they did catch Lusardi and he’s now awaiting punishment in court. The Borgata are also going to give more back to players than the tournament prize pool was worth, even though the DGE says they don’t have to. The only extra thing they could do is grant Musterel’s legal request for travel expenses as well. But seeing as how they were just as much a target of Lusardi as anybody else, it doesn’t really seem like their responsibility to pay back even more out of their pockets.