Nevada Slot Route Operator Given $75k Fine

Golden Route Operations

Golden Route OperationsGolden Route Operations fined $75k due to providing games to bar without gaming license.

When it comes to offering gaming services in Nevada, or any state for that matter, operators must be licensed to do so. In Nevada, the Gaming Commission provides licensing to operators who fill out an application and are approved based on the stipulations for the gaming they wish to provide. Gaming content providers, those who provide the actual machines to operators, also have to follow regulations. Just recently, the Golden Route Operations group was given a $75,000 fine due to providing gaming products to a sports bar in Reno, one that did not have proper gaming licensing.

Not Following Procedure

Only facilities with proper licensing are supposed to be given games for operations by providers such as Golden Route Operations. Because they were in violation of regulations, the company was handed down the fine. The Nevada Gaming Control Board and the Commission were in approval for the fines after the Golden Route Operations and Sartini Gaming agreed to the two counts charged for the violation.

The complaint was issued by the Board and Commission on November 20th. Golden Route Operations owns Sartini Gaming, the largest distributor of gaming products in the state. Golden Entertainment is an operator as well, having ownership in eight casinos plus operating PT’s Pub tavern.

The company approved slot machines for a bar in Reno, known as Floyd’s Fireside, the reasoning behind the fine. The games were provided to the bar as it was set to be owned by a new company. Thomas H. Floyd Enterprises Inc. was the previous owner who had gaming licensing. The Colt Family LLC took over in mid-2016 and was not given licensing until February of this year. The facility was given games for some time before they were actually holding a gaming license with the new owner.

Should Have Known Better

The Gaming Control Board feels that the gaming company should have known that the new owner did not have licensing as public filings were available. Golden was accused of a second complaint due to being in violation of regulations involving gaming as they failed to update their written procedures that prevented the installation of such devices until items were certified.

Written procedures were to be update based on a settlement agreement from late 2013 but when checked earlier this year, it was found that the company had yet to do so. At the time of the transaction with Floyd’s Fireside, it is unclear as to if the checklist was in place.

The company now has to pay the $75,000 fine plus update their procedures for verification. This includes having to review agreements for space leasing every five years with each customer. The attorney for Golden Entertainment, Michael Alonzo, stated that the new procedures of the company are hard-wired into the system. The compliance officer for the company stated that new steps as well as personnel are in place to help prevent further issues of this nature.

All gaming companies like Golden Entertainment must maintain all regulations and procedures or face the consequences such as stiff fines. It is not uncommon for such issues to arise and operators or gaming providers having to pay penalties and make changes in order to ensure compliance of regulations and procedures.

However, when such violations occur, it can be many months and possibly even years before any fines or additional consequences are set for the company in question as investigations and reviews are completed.