Global Cash Access settles Arizona license dispute, agrees to pay $1 million
Associated Press
11/20/09 10:30 AM PST
LAS VEGAS — Global Cash Access Holdings Inc., which provides cash access services at casinos, has agreed to pay $1 million in a settlement after Arizona authorities initially refused to renew the company's certification in the state.
Global Cash' certification in Arizona will be renewed, the company said late Thursday, after months of negotiations led to an agreement with the Arizona Department of Gaming.
The agency notified the Las Vegas-based company in June that it intended to deny a license renewal. A Department of Gaming news release said the agency was investigating whether Global Cash knowingly underpaid interchange fees to banks from Visa transactions. The state also looked into whether the company provided complete and accurate information to regulators.
The department said it agreed to renew certification because of changes in the company's ownership and personnel, and updated policies and controls. The state also said Global Cash pledged "to have no further business relationships with individuals and companies involved in the underpayment of interchange fees."
The settlement requires Global Cash to pay a $500,000 fine to the state, provide $300,000 to support state programs to curb problem gambling, and $200,000 to reimburse the state for legal fees and investigative costs.
Global Cash said it reserved those amounts previously during the quarter ended Sept. 30.
The company provides casino customers with credit card cash advances, ATM cash withdrawals, debit card transactions, check verification, warranty services and Western Union money transfers.
Shares of Global Cash fell 6 cents to $7.14 in midday trading.
