Pay-to-play is an alcohol industry term for the payment of incentives for display space or beer tap assignment. Officials in the state of Massachusetts late last year undertook investigation into these violations in that state. However, pay-to-play is also unlawful under federal alcohol laws.
Las Vegas alcohol establishments should be aware of this. In fact, a few years ago, a handful of alcohol suppliers were fined nearly $2 million combined by the federal Alcohol & Tobacco Tax & Trade Bureau (TTB) for allegedly paying incentives through a third-party to casinos for valued display of and preferred space for their products. These payments known as “slotting fees” are prohibited under federal law.