The Nevada Gaming Commission signed off on a $10,000 fine for a Lovelock casino concerning its lack of oversight after it agreed to take responsibility.
Senior Deputy Attorney General John Michela told the Commission of the violations by the Off The Rails Casino in northern Nevada, owned by SRY Industries LLC. The complaint stems from recurring violations of audit and internal controls and ownership was sent three letters noting the violations from the Gaming Control Board, Michela said.
Before filing the complaint, the Board attempted to address the most recent issues with an order to show cause. In two attempts, Off The Rails didn’t submit a response, he said.
In accepting the settlement, Off The Rails agreed to maintain an online slot system, employ an accountant or bookkeeper with gaming experience approved by the Board, and use a compliance officer approved by the Board.
“Compliance with these conditions should go a long way in helping Off The Rails correct its recurring audit and internal control issues,” Michela said.
Casino attorney Steve Evenson said they accept the stipulation.
“We’ve erred previously with counsel from the state about the specific issues that we had with the process. However, it didn’t change the outcome of where we are,” Evenson said. “In light of the admission to what is taking place here, we ask you to accept the stipulations for the agreement.”
Off the Rails was cited for 29 allegations as part of a 19-page complaint.
The allegations include failure to: ensure a gaming employee was registered; maintain progressive logs and audit records; investigate variances; comply with jackpot payout regulations; properly document payouts; comply with independent audit requirements; restrict access to the count room perform required currency-counter tests; account for wagering instruments; review records for reasonableness; produce required reports; review reports; perform independent testing of promotional points system; use approved methods for reporting revenues on Gaming Commission tax returns; and maintain documentation for bankroll computations.
Commissioner Brian Krolicki said the stipulation is clear and that the audit and internal control issues are being addressed.
Commissioner Rosa Solis-Rainey reiterated to the casino the importance of the regulations. “They have to be adhered to. It’s important that compliance be a focus in the future.”
Evenson said they will make the improvements. He added the ownership will be approaching regulators to approve their moving into a new building.
