← Back to Newsroom

Peppermill faces $1M fine for slot machine spying

February 14, 2014 · 1:14pm ET | 10:14am PT

RENO, Nev. (AP) – A Reno casino faces a $1 million fine after regulators said an employee had been using a special key to gather proprietary information about other casinos’ slot machines since at least 2011.

A proposed settlement between the Nevada Gaming Control Board and the Peppermill casino in Reno was made public Thursday, and requires final approval from the Nevada Gaming Commission.

“The actions, as set forth herein, constitute a failure by Peppermill Casinos to conduct gaming operations in accordance with proper standards of custom, decorum and decency,” the three-count complaint said, adding that they could “reflect discredit upon the State of Nevada or the gaming industry.”

According to the complaint, a Peppermill corporate analyst, Ryan Tors, was caught using a “reset key” in slot machines at the Grand Sierra Resort in Reno in July. Security detained him and contacted the Gaming Control Board, which launched an investigation.

Authorities said the Peppermill encouraged Tors to visit competitors’ casinos and use the key, which unlocks information about how loose a slot machine is. The key also allows the user to put machines in and out of service, to adjust sound, and to access playing history.

Regulators say Tors used the key in at least 10 other casinos, including the Eldorado, Circus Circus, Siena, Tamarack Junction, Atlantis, Baldini’s, Rail City and Hobey’s in the Reno area, and the Wendover Nugget and Red Garter in Wendover.

Sigma email web 260729

There was no evidence that the Peppermill used the information to change the looseness of its own slot machines as a way to gain a competitive advantage, according to the settlement agreement. But if regulators do find such evidence, they have a right to pursue another complaint against the casino.

Copyright 2014 The Associated Press.

Associated Press

Copyright Associated Press

10107 articles View profile