Colorado regulators have levied more than $110,000 in fines against five casinos for having defective or illegal slot machines, the first-ever state penalties for such violations.
The largest fine, $87,500, was issued against the owners of the newest casino in Central City, Century Casino, for having five slot machines that allowed gamblers to wager more than the state’s $5 bet limit.
The Division of Gaming also uncovered 47 slots at four other casinos that had defective software. The glitches either caused the machines to clear their games-played memory, which affects the number of times they pay out, or left the slots vulnerable to cheating.
The division is investigating cases involving eight other casinos that could lead to fines, spokesman Don Burmania said Tuesday. There are 46 casinos in the state.
Gaming Division director Ron Kammerzell wrote in an October industry newsletter that he was “both perplexed and disappointed that division staff have discovered so many instances of noncompliance of late.”
Under rule changes that took effect May 30, the Gaming Division no longer inspects new slot machines before they are placed on the gaming floor.
Instead, the casinos are left to ensure that their machines comply with state standards. Regulators then check the new machines within 90 days.
“We have three compliance investigators covering more than 15,000 machines,” Burmania said. “The casino industry was kind of complaining that they had to wait for us. We said ‘All right, you can check your own machines.”‘
Century Casino general manager David Aker said Tuesday the company bought more than 200 used slots from Gulf Coast casinos, which were devastated by Hurricane Katrina. Of those, five video poker machines had software that allowed gamblers to bet more than the $5 legal limit.
“They just got overlooked,” Aker said. “They were on the floor for less than a week when they were discovered.”
The $50 million casino opened in July, a month earlier than planned.
“They were in a hurry to open and were extremely careless,” Burmania said.
Since regulators no longer have the pressure of checking new machines immediately, they’ve had time to re-check older machines for compliance, Burmania said.
Regulators fined Colorado Central Station in Black Hawk $15,000 for having 18 defective slots. The glitches would occasionally clear the machine’s memory of the number of games played and the times it has paid out. State statutes require slots to pay out at least 80 percent of wagers placed.
Regulators also fined the Double Eagle casino in Cripple Creek $4,500 for having 15 machines that had glitches that left them vulnerable to cheating. The Riviera Black Hawk was fined $3,000 for having 10 similar machines and the Isle of Capri Casino in Black Hawk $1,200 for four machines.
The Gaming Division ordered those casinos to remove the defective slots in 2003, when an independent testing company told regulators of the glitches. The division didn’t follow up on the order until this summer.
Double Eagle and Riviera were fined in August. The Isle of Capri, Colorado Central Station and Century Casinos were fined last month.
Pete Savage, general manager of the Riviera, declined to comment. Officials with Double Eagle, Isle of Capri and Colorado Central Station didn’t return calls seeking comment.
Fine breakdown
Five Colorado casinos have been fined $111,200 by state regulators for illegal or defective slot machines:
Century Casino, Central City
5 illegal slots
Fine: $87,500
Colorado Central Station, Black Hawk
18 defective slots
Fine: $15,000
Double Eagle, Cripple Creek
15 defective slots
Fine: $4,500
Riviera Black Hawk, Black Hawk
10 defective slots
Fine: $3,000
Isle of Capri, Black Hawk
4 defective slots
Fine: $1,200
Staff writer Andy Vuong can be reached at 303-954-1209 or avuong@denverpost.com.
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