A Michigan Man has pleaded guilty in federal court after conducting an elaborate fraud scheme that allowed him to withdraw more than $100,000 at various casinos. The man used prosthetic face masks to change his appearance, and created a number of false identification cards, as he took thousands from numerous unsuspecting gamblers at casinos across two states. In addition to the prosthetic face masks, the man utilized hats, glasses, and surgical masks to disguise himself at each of the locations he visited. Through a calculated series of moves, he was able to exploit casino rewards programs, stealing the identity of customers and withdrawing cash in their names.

The Guilty Party

John Christopher Colletti, 56, officially pleaded guilty to wire and identity fraud on Tuesday. Colletti, with his various disguises, was able to take more than $125,000 from gamblers. His elaborate plan has now earned him up to a maximum of 20 years in prison for wire fraud and two years for identity fraud. Colletti will be officially sentenced later this summer.

Colletti used a face mask to make him look like an older white male before visiting casino kiosks to take out thousands of dollars in cash. After amassing more than $100,000, the FBI became involved, eventually identifying Colletti. Timothy Waters, a special agent from the FBI’s Detroit Field Office, shared that Colletti’s actions impacted many innocent gamblers and that the FBI needed to ensure that these actions of identity theft were addressed, and the guilty party was held accountable.

Casino Security Challenges

In order to operate casino kiosks, gamblers must present their driver’s license and enter the last four digits of their Social Security Number and telephone number. Colletti specifically targeted VIP Preferred Program casino patrons. VIP customers typically have access to features that make it easier for them to withdraw and deposit, and in Colletti’s case this gave him access to withdraw larger sums. The system is designed to keep customers safe by having them provide their personal information first, but Colletti managed to purchase the personal information of his victims off the internet, allowing him to create fraudulent driver’s licenses made in their names.

Colletti was first flagged after withdrawing large sums from kiosks at numerous casinos. Thanks to security cameras, investigators were able to catch Colletti in the act, despite the fact that he used many different disguises. He first gained the attention of authorities after 10 instances of identity theft were found at MGM Grand Casino Detroit in May of 2019. From these 10 cases, Colletti was able to withdraw $98,840. In a single instance, Colletti was identified as wearing a prosthetic mask to disguise his appearance, and he went on to make 15 transactions totaling $30,000 at various kiosks in the casino. From there, security surveillance was able to track Colletti to his next destination, where he removed his disguise and made off with his cash.

Paying the Damages

Colletti was not arrested until Mach 12, 2020, at the Prairie Band Casino. In this instance he was wearing a straw hat and glasses while using a mobility walker. On this day, Colletti withdrew $20,000, which required him to present his Social Security number. When approached by security, Colletti retreated to the restroom removing his disguise and fleeing the casino. Security found the disguise left in the restroom with cash, driver’s licenses, and a Nissan car key. After Colletti was arrested, a search warrant was obtained and police eventually discovered face masks, flash drives, 83 driver’s licenses, 14 insurance cards, and 19 players cards from various casinos like the MGM Grand.

The lucrative scheme reveals the real dangers of identity theft and the importance of protecting personal information. Thanks to the security systems in place at the casinos that Colletti visited, the customers whose information was compromised will be paid back in full for their losses. Global Payments Gaming Services, the manufacturer of the casino kiosks that Colletti withdrew from, will be paying back the customers who were affected. Colletti will eventually pay the full $125,740 back to GPGS.

Resorts World Catskills has identified the Town of Newburgh in New York as the potential site for a gambling hall that could include 1,300 gaming and video lottery terminals. Resort World believes that the struggling Newburgh Mall could benefit from a revival in the form of a new casino project, and the gaming company has offered $3 million annually in host-community payments as part of its proposal. Such a price tag may entice officials, as retail stores continue to struggle amidst the pandemic.

A Reputable Operator

Resorts World is owned by the Genting Group, a Malaysia-based company, and already operates casinos in Sullivan County and Queens, and previously had plans to open a video gaming parlor in Woodbury. With the prospect of the Newburgh Mall project on the horizon, the Woodbury plans have fallen to the wayside. The company was authorized by the state in 2019 to open a facility in Orange County to house the electronic slot machines that were previously licensed at Monticello Raceway. Now, Resorts World is trying to double down on this authorization to create a gambling hall in Newburgh Mall.

A formal pitch from Resorts World to Newburgh’s Town Board came about a month ago. In order for the plan to move forward, the zoning for building would have to be amended. Now it looks like the approval process is ready to move forward.

Struggling Retailers

Newburgh Mall is one of the many retail locations throughout the world that find themselves struggling in a world that has become increasingly dependent on online shopping. This fact has been amplified by the ongoing concerns surrounding the COVID-19 Pandemic. The mall already has 17 vacant store spaces, as many others continue to struggle.

Resorts World aims to sign a 65-year lease with the mall owners to add lottery and gaming terminals to the existing building. The gambling hall would not replace the building, but simply revitalize some of the areas that have are not being used, such as a vacant Bon-Ton department store. The proposed gambling hall would not have any restaurants or shopping, and the gaming operators believe that this would lead to gamblers streaming out into the mall for food or shopping whenever the visit.

Crunching the Numbers

In February, representatives for the casino operator presented their plans to the Newburgh Town Board. Their proposal stated that the new operation could employ up to 225 full-time workers. During the construction of the project, roughly 200 construction workers would also be hired to help construct the $32 million project. The end goal would be to transform a 68,877-square-foot section of the indoor mall into a new gambling hall called Resorts World Hudson Valley. Once built, Resorts World would give preference to local residents when hiring employees for the gambling hall, with an average salary worth about $72,000 a year.

As part of the $3 million in annual host-community payments, Resorts World will pay $1million for any municipal purposes, $500,000 a year for public safety and $1.5 million for community projects. Each of these payments would increase by 5% every 10 years. In addition to these numbers, Resorts World estimates that the new project could generate $65.6 million a year in revenue that would directly support New York Public schools.

Positive Signs

Resorts World believe that the revitalization project is one that they and the Newburgh Mall could mutually benefit from. In a press release, Orange County Executive Steve Neuhaus called the project “an investment in jobs, in growth and the future of Orange County.” The revitalization project could provide a beacon of hope as well, as restrictions surrounding the COVID-19 pandemic loosen, and retailers work to get back on track. So far, talks between Resorts World and officials have been positive and progressive, in a state that didn’t even allow Vegas-style gambling halls and casinos until 2013. Now officials and residents will wait to see if and when the gambling hall can become a reality.

Urban One, a Black-owned Washington media company, is working with Peninsula Pacific to propose a $517 million casino resort project. The proposed casino resort and live music theater would be built on property in South Richmond that is currently owned by Philip Morris USA, one of the city’s largest employers. The project was made possible, after the state legalized casinos for the first time last year. Now Urban One is trying to build the first casino with African American ownership in the state.

A New Contender

Urban One and Peninsula Pacific Entertainment, the owner of Colonial Downs Group, are hoping to capitalize on a potential casino that has been in the works since the legalization of casinos in the state of Virginia. Urban One owns more than 50 radio stations in over a dozen markets along the east coast. Tin Richmond, they own four radio stations, which are known for having a predominantly African American audience. Urban One already has a 7% stake in MGM National Harbor casino resort in Maryland, but this new proposal reflects a new focus on creating economic opportunities for minorities in Virginia. Despite their relative lack of experience in the industry, Urban One made a smart choice by selecting a worthy partner.

Alfred Liggins, Urban One CEO, confirmed that the media company would be the majority investor in the potential casino resort project. In a statement to the Richmond Times-Dispatch, Liggins shared that the group was excited to submit a proposal that includes a unique gaming, dining, and live music destination that would be the only black owned casino in the state. Minority ownership has been a major focus of the latest casino legislation adopted by the General Assembly, and Urban One hopes that they will soon become the proud owners of the ambitious project they have proposed.

Details of the Project

Liggins promises that the proposal will be an appropriate reflection of the community they have proudly been a part of since 1999. The ultimate goal is to produce a final product that reflects the local flavor of Richmond while uplifting the community.

The proposed $517 million casino resort and live music theater be built on 100 acres owned by Altria Group Inc., the parent company of Philip Morris USA. Altria has offered no comment on the real estate transaction that would be necessary to make this project a reality, but they have acknowledged the area, which is located just south of a major cigarette manufacturing complex, could benefit from further development. Steve Callahan, a spokesman from Altria, shared that any decisions made about the land should involve the Richmond community.

The proposed casino resort project would include nearly 90,000 square feet dedicated to casino games, 150-room hotel, as many as a dozen restaurants and lounges, and 3,000-seat entertainment venue. A number of other outdoor recreational features could also be included. The venue, which could host up to 200 live music events a year, would make an ideal casino resort destination for people throughout the United States.

Virginia’s First Casinos

Virginia passed a state law last year that allows legal casino gambling for the first time. Previously, Virginia’s gambling laws were relatively strict, banning casinos and greyhound racing specifically. The state does allow betting on games of chance in private residences and the Commonwealth runs a statewide lottery.

The new legislation opens the door for casinos in five different cities, after voters approved them in local referendums. Norfolk, Portsmouth, Danville, and Bristol have all approved casino projects; Richmond is still waiting, but they will get their chance next November. Last week the city announced that an evaluation panel including two City Council members and seven administration officials will review all Richmond casino proposal, while seeking additional support from an outside consulting firm. After reviewing the proposals, the panel will make recommendations to Mayor Levar Stoney and work to vote on a recommended operator and location.

Urban One and Peninsula Pacific have to wait and see how far their proposal can go. Their primary competition will come from the Pamunkey Tribe, who already has secured a project for a casino in Norfolk.

Three gaming bills were turned down by the House on Wednesday, stalling any chance for legalized gambling in the state of Hawaii. After a year full of economic hardships, state lawmakers in Hawaii were considering a serious gaming overhaul in hopes of bringing some relief to those suffering in the state. The state is facing huge budget deficits, after the COVID-19 pandemic left the state scraping to make up for the lack of revenue generated from tourism. Officials were hoping that the proposed gambling-related bills could help account for some of the glaring issues facing the state, but it appears that lawmakers feel that the time just isn’t right for gaming expansion.

Details of the Proposed Bills

The three bills proposed would have legalized commercial gambling in the state of Hawaii, which is just one of two states with no form of legal gambling in the country. One bill would have created a state poker commission to oversee live poker rooms. Another would have allowed a casino on the Hawai’i Convention Center. Under this bill, players would have been required to stay in an Oahu hotel in order to play at the casino. The final bill pushed for a pilot program for digital sports betting platforms.

Rep. Sean Quinlan, chairman of the House Economic Development Committee, deferred all three bills, leaving little to no hope for immediate change to gambling laws in the rainbow state. This is in addition to Quinlan’s decision last week to defer on another bill that would allow the state Department of Hawaiian Home Lands to build a casino near Kapolei. That bill would have given a 40-year gaming license for an integrated resort and casino that would be built by the DHHL in parcel zoned lands for commercial use, located west of Ko Olina. The belief is that the proposed casino resort could generate millions of dollars in annual tax revenue. The revenue would be funneled toward a program that gets Hawaiians off of a wait list and onto their ancestral lands and into homes. The bill could have helped clear a backlog of more than 28,000 DHHL beneficiaries, who have been left waiting for homes and land.

Existing Gambling Laws in Hawaii

The proposed legislation could have brought gambling to a state that has traditionally outlawed almost all forms of gambling. In Hawaii, residents are prohibited from wagering on horse or dog races. Gambling aboard ships or casinos is also prohibited. Hawaii does not even have a state lottery, unlike many of the continental United States. Other than Utah, Hawaii is the only state that prohibits all forms of legalized gambling.

The only form of gambling that is legal in Hawaii is social gambling, but that’s only if the act is committed somewhere other than a hotel, motel, bar, nightclub, or any business establishment or public place.

Reality Check

Despite the sweeping denial of clear-cut gambling legislation, the Senate Education Committee did vote to approve another bill that would create a state lottery. The only issue is that committee Chairwoman Michelle Kidani amended the bill to delay the creation of the lottery until January 1, 2023, putting tangible gaming in the distant future. The Senate will also be hearing a version of the DHHL casino proposal before the Senate Hawaiian Affairs Committee.

Hawaiian residents, however, should not get their hopes up. State Rep. John Mizuno has made it clear that the breaking of the prohibition on any legalized gambling in the state could still be a far way off. Mizuno, who is the vice speaker of the house, was responsible for the bill that would have brought a casino to the Hawai’i Convention Center and has since said that the House seems to be firmly against legalizing gambling, regardless of the economic troubles residents are facing.

While the gambling bills can technically be resurrected in the house, the reality of that happening is a stretch. Mizuno believes that time is the only great equalizer in moving this gaming expansion forward, and gambling in Hawaii still has a number of hurdles to jump before its time has come.

The state of Georgia has been mulling over gambling legislation for years, without any tangible results. On Tuesday, lawmakers introduced a constitutional amendment to the Georgia House of Representatives that would introduce gambling in the form of casino resorts across the state. Those in favor of new legislation hope that the expansion can finally be passed, after previous efforts fell short.

The Latest Expansion Proposal

The effort for gambling expansion has been mounting for nearly 30 years in the state of Georgia. The latest proposal comes from Republican state Rep. Ron Stephens of Savannah, Alan Powell of Hartwell, and Democratic Rep. Calvin Smyre of Columbus, who have all ben longtime supporters of legalizing casinos. The Georgia House of Representatives made the proposal as the entire country works to recover from the ongoing pandemic.

The proposed legislation that would open the door for a limited number of casino resorts, would provide the state with revenue that could benefit a number of important programs. The amendment channels these revenues toward tuition and grant programs like the HOPE Scholarship, supporting public and private colleges and universities throughout the state. Additional revenue would be directed toward covering the casino’s operating costs, while also funding gambling addiction programs.

The Rising Tide

In order to pass the latest legislation, the amendment must receive a two-thirds majority vote in the state House and Senate. As Georgians know, this is no small task, as countless predecessors have failed to stave off opposition mounted by religious conservatives. The proposed casino expansion is the second gambling proposal in the 2021 calendar year. The other proposal came earlier this month and would legalize online sports betting throughout the state.

Georgia’s last gambling expansion came in 1992, when the Peach State’s voters chose to approve the lottery. Since then, all other forms of gambling have been illegal in the state, leaving residents feeling stuck in the past. Late in 2020, a House panel passed a resolution that would allow casino gambling, horse racing, and sports betting. Unfortunately, the proposal never advanced, and the pandemic brought all other discussions about gambling expansion to a screeching halt. Now, Georgians hope to capitalize on what could be a very important revenue stream.

Potential Outcomes

Religious groups have vehemently spoken out against the new legislation, citing crime and addiction as major concerns. That being said, the expansion has a number of big names in the private sector fighting for the expansion to go through. Officials at Atlanta Motor Speedway already presented a plan last year to build a $1 billion casino resort near its racetrack in Hampton. The developers responsible for the entertainment development that includes the Atlanta Braves’ Truist Park have also shared renderings of proposed casino resorts. If the amendment passes, the renderings for casino resorts on the Chattahoochee River, Lake Hartwell, and in Midway could become a reality in the near future.

Those in favor of the gambling legislation believe that the industry could bring thousands of jobs to the state, while raking in millions of dollars for important funds like the aforementioned HOPE Scholarship. Another idea being thrown around by lawmakers is to take the potential funds and direct them toward the state’s health care system.

While the support for the amendment is clear, the two-thirds hurdle still looms large. In the next few months Georgia will see whether or not it will be able to approve its first gambling expansion since 1992.

Cedric Cromwell has been the long-time chairman of the Wampanoag Tribe in Massachusetts. He has been charged, along with David DeQuattro, in a bribery scheme in relation to the Tribe’s casino development plans. The charge accuses the two of colluding with each other, Cromwell as chairman of the Wampanoag Tribe and DeQuattro as owner of an architecture and design firm, to extort tens of thousands of dollars in exchange for construction contracts.

Both men have plead not guilty to the bribery charges via a video conference held last week. Cromwell has also plead not guilty to the extortion charges. They were both released by a Boston federal court judge on a $25,000 unsecured bond until they appear for their next court date.

The Charges

Prosecutors allege that the two had been working together since at least 2014. Between 2014 and 2017, DeQuattro made payments to Cromwell and provided other benefits totaling roughly $60,000. In return, Cromwell had awarded construction contracts to DeQuattro’s architecture firm worth nearly $5 million. The money is alleged to have been used by Cromwell personally and was accompanied by lavish gifts such as a home gym system and hotel reservations.

United States Attorney for Massachusetts, Andrew Lelling, said, “many American Indians face a host of difficult financial and social issues. They require, and deserve, real leadership. But it appears that Cromwell’s priority was not to serve his people, but to line his own pockets.” Lelling’s office is currently prosecuting the case. According to Cromwell’s lawyer, Timothy Flaherty, he denies any such allegations and added that his client “is a man of principle, a man of faith, and he is a transformational leader.”

The Wampanoag Tribe’s council voted in an emergency meeting on Friday. They voted unanimously to remove Cromwell as the Tribe’s chairman. “We take the charges brought against Cedric Cromwell very seriously. The Tribe’s focus remains on ensuring that our land remains in trust and supporting our tribal sovereignty,” said Jessie Baird, Vice chair for the Tribe’s council.

The Project

The Wampanoag Tribe, located on Cape Cod, traces its lineage back to the Native Americans who shared their fall harvest with the Pilgrims in 1621. In 2007, the Tribe gained federal recognition and was awarded over 300 acres placed into federal trust. This land was declared as a sovereign reservation in 2016 under President Barrack Obama’s administration. The Tribe then moved immediately to break ground on a casino development project in Taunton, Massachusetts, on Boston’s south shore. The Tribe partnered with Genting Group, a casino developer based out of Malaysia to construct the $1 billion First Light Casino.

The project was almost immediately delayed by significant political and legal challenges. Namely, a challenge by President Donald Trump’s administration to take back land designated under the Obama administration. In early 2020, the Federal Bureau of Indian Affairs stated that it intended to rescind the 300 acre tribal reservation and also remove the land under federal trust. In June of this year, a federal judge was able to halt that decision. The judge ordered that the Department of the Interior review the Bureau’s plan and issue any new findings. The Bureau of Indian Affairs has appealed the current ruling.

The Trump administration also fought legislation passed in the House of Representatives, currently led by the Democrats, that sought to protect the Tribe’s reservation. The President has been dismissive of the effort, calling it a “special interest casino bill.” Both the Wampanoag Tribe and others across the country have watched the administrations actions with interest and concern. Many have complained that such decisions set a dangerous precedent and a possible legal means of taking away a tribe’s federally protected lands.