Peppermill to pay $1M fine for slot machine spying

Peppermill to pay $1M fine for slot machine spying

CREATED Feb 20, 2014

LAS VEGAS (AP) -- A Reno casino has agreed to pay a $1 million fine for allowing an employee to use a special key to gather proprietary information about other casinos' slot machines.

The Nevada Gaming Commission approved the settlement on Thursday.

The state Gaming Control Board brought a complaint after a Peppermill corporate analyst was caught using a "reset key" in slot machines. The complaint said he used the key at 11 casinos during the past three years.

Authorities said the Peppermill encouraged the employee to visit competitors' casinos and use the key, which unlocks information about how loose a slot machine is. The key cannot manipulate the game.

The Peppermill apologized and said the conduct was a regulatory violation but not illegal.