Tesla isn’t currently in good standing with New Jersey casino regulators.
The electric carmaker’s store in King of Prussia, Pennsylvania recently saw its vendor registration revoked by Atlantic City casino regulators. Tesla has seven charging connectors between the Golden Nugget and Borgata casino properties. The order from the Garden State prohibits the company from engaging in business with New Jersey casino licensees, as well as applicants for licensure.
NJ Online Gambling asked a representative with the DGE what will happen as a result of the revocation. The representative said the DGE won’t comment beyond what’s in the order. Tesla has charging stations elsewhere in Atlantic City that aren’t affiliated with a casino.
Tesla filed a vendor registration form with the state in April 2016. Regulators said the company “failed to cooperate” with its regulatory investigation. The DGE is in charge of overseeing all aspects of the state’s casino gambling market, among the largest of its kind in the nation.
Tesla had once been prohibited from direct sales in the Garden State.
Reason for the action
According to the order, Tesla “failed to identify 100% of Tesla’s ownership interest,” at the request of regulators. New Jersey is known for having some of the most thorough gaming-related oversight in the world.
The DGE said it contacted the King of Prussia location to try to correct the issue, but a company representative failed to respond. The Tesla location eventually told the DGE that it should be in contact with a store in New Jersey, thanks to its proximity to Atlantic City.
After communicating with the Cherry Hill, New Jersey location, the DGE learned in July 2018 that that store wasn’t interested in completing the application for vendor registration.
The DGE said it again was in contact with the King of Prussia store, and at that point, regulators were informed that the company wanted its vendor registration application to be canceled.
According to regulators, they informed Tesla that to withdraw from the process the company had to say so in writing. The DGE said a Tesla representative didn’t comply with that request. The DGE said it later gave Tesla another chance, and at that stage in the communication the Tesla representative claimed the firm was being harassed.
Later in July 2018, the DGE sent a certified letter to Tesla informing the company what it needed to do. Again, no response, the DGE said.
Tesla didn’t like the red tape?
According to the DGE, Tesla had not “transacted” with a New Jersey casino operator in the previous 12 months ending in August 2018, so it appears it was already eyeing some sort of exit.
As a result of the non-compliance, the DGE moved to temporarily ban the company from doing business with any casino or any person acting on behalf of a casino. Any existing agreement the company has with a casino, “whether written or unwritten,” was also immediately terminated with the order.
Tesla is banned from reapplying for or obtaining any approval under the New Jersey Casino Control Act for a period of five years, unless it “establishes that the grounds for disqualification are no longer applicable.”
Sounds like there is still plenty of opportunity for everything to be sorted out without any potential impact to visitors to the seaside gambling town.
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