RENO, NV - The Peppermill casino is in hot water after being caught stealing trade secrets from its competitors. The casino apparently asked its employees to do this, and now the landmark property is facing a hefty fine from gaming regulators.
For the Peppermill, the gig was up July 12th of 2013. A plan to gather information on other casinos came to halt when a corporate analyst was caught spying.
"The Gaming Control Board simply won't tolerate that type of activity," said A.G. Burnett, commissioner for the Nevada Gaming Control Board.
Ryan Tors, the Peppermill's Director of Slots, was allegedly resetting machines at the GSR so he could get proprietary information, like how loose the slots were.
"Theoretically it could be useful. The way it could be useful is it could tell them whether they are on the right track as far as their payout percentages," said Burnett.
It's not technically against the law, but the GSR was not happy about it. When they caught Tors, they called the GCB, which plans on levying a $1 mIllion fine.
"It was an activity that could be harmful to the state's reputation," said Burnett.
In a statement Friday, the Peppermill said it "apologizes for the obvious lack in judgement." It added, there is no evidence their odds were adjusted based on the information gathered. Still, gaming control officials say the Peppermill told their employees to go out and do this. Tors allegedly did the same thing in at least 10 other casinos.
"The last thing we want is for people to think that somehow games can be compromised. Again, I reiterate that with this key, this is absolutely not the case. And at this point we feel it is an activity, and I think the Peppermill would accept, that it is an activity that simply looks bad. And it's just not tolerable," said Burnett.
The Gaming Control Board will meet next week to decide if the $1 million fine is an acceptable punishment for the Peppermill. There is also a pending lawsuit from the Grand Sierra Resort. In court documents filed in August, the GSR is asking for $30,000 in damages.