Nevada Gaming Commission Issues $10K Fine to Lovelock Casino

On June 13, the Nevada Gaming Control Board filed an eight-count complaint against Off the Rails, citing numerous reporting violationsImage Source: Shutterstock.com

Members of the Nevada Gaming Commissionagreed last week that Off the Rails Casinoin Lovelockhad significantly mishandled its accounting practices over several years. As a result, they unanimously voted to impose a $10,000 fineon the casino’s parent company.

Lovelock Casino Hit With $10,000 Fine

Commissioners approved a settlement agreement that included a $10,000 fine and required the company to hire an accountant with experience in the gaming industry to address ongoing accounting problems that have persisted since 2019.

On June 13, the Nevada Gaming Control Board filed an eight-count complaint against Off the Rails, citing numerous reporting violations. These included improper employee registration, inadequate maintenance of slot machine payment logs and accounting records, flawed internal controls, incorrect gross revenue calculations, poor bankroll documentation, and unauthorized access to count rooms. All of these are practices the Board deemed unsuitable for casino operations.

Initially, Senior Deputy Attorney General John Michelainformed the Commission of multiple violations committed by Off the Rails Casino in northern Nevada, which is owned by SRY Industries LLC. Michela explained that the complaint arose from repeated failures to comply with audit and internal control requirements, despite the Gaming Control Boardhaving sent the company three warning letters regarding these issues.

Prior to filing the formal complaint, the Board issued an order to show cause in an effort to resolve the most recent violations. However, Michela noted that Off the Rails failed to respond on both occasions. 

The Casino Responds

Stephen Young, operator of Off the Rails Casinoand attorney for SRY Industries LLC, assured commissioners he would implement necessary changes to “keep everybody happy.” In addition, casino attorney Steve Evensonsaid they accept the stipulation. Evenson acknowledged that they had previously made misngakes in working with state counsel regarding specific procedural issues, but noted that those errors did not alter the final outcome. In light of the admissions made concerning the violations, Evenson urged the Commission to accept the terms of the settlement agreement. He also explained that the necessary improvements would be made and noted that the ownership plans to seek regulatory approval for a move into a new building.

Commissioner Brian Krolickistated that the stipulation was clear and acknowledged that the issues related to audits and internal controls were in the process of being resolved. Meanwhile, Commissioner Rosa Solis-Raineyreaffirmed the importance of regulatory compliance, stressing to the casino that the rules must be followed and that maintaining compliance should be a central focus going forward.