The Grand Sierra Resort in Reno has consented to pay the Nevada Gaming Commission (NGC) $250,000 to resolve a regulatory issue related to an incident from the previous year.
The Nevada Gaming Control Board (NGCB) filed a complaint against MEI-GSR Holdings, LLC, operating as the Grand Sierra Resort, after an agent claimed they were denied timely access to the Grand Theatre on the property during a regular inspection.
Michael Somps, a senior deputy attorney general in the Nevada Attorney General’s Office advocating for the state in the case, informed the NGC that a Gaming Enforcement Division agent reached the Reno casino on December 19, 2023. While the agent was being inspected, casino security confronted him after he evaded a metal detector at the theater's entrance.
Casino security informed the agent, who showed his NGCB badge and credentials, that he needed to surrender his firearm prior to entering the theater. After roughly six minutes, officials from the resort notified the security team that the gaming agent was allowed to enter the theater with his firearm.
Uncommon Event
Every establishment licensed by the NGC undergoes regular inspections. State gaming agents will have prompt and complete access to “every part of the premises,” with the term premises defined as “curb to curb,” according to Somps.
The senior deputy attorney general stated that gaming agents examine spaces outside the casino floor to confirm that no illegal gambling or other illicit activities are taking place within the licensed gaming establishment.
Although a short wait for access is occasionally typical, a six-minute delay, which the agent contested and claimed was longer, is considered an anomaly according to Somps. Linked to a comparable event in 2021, when a third-party security guard employed by the Grand Sierra prevented a gaming agent from gaining immediate entry until he was screened, Somps stated that a $250K fine against the resort was justified.
"Licensees have a long history of complying and granting Board agents immediate access to all portions of the premises. The Board views the Grand Sierra Resort’s violation seriously and maintains that licensees and their employees understand that any Board agent be given immediate access to any portion of the premises of the gaming establishment after they display their credentials,” Somps said.
The Meruelo Group, the parent company of the Grand Sierra Resort owned by billionaire Alex Meruelo, did not dispute the fine while agreeing to resolve the complaint.
The $250K penalty arrives shortly after Meruelo’s Grand Sierra contributed $15K to both Robert Mitchell Elementary School and Vaughn Middle School, which are part of the Washoe County School District.
Where the Funds Are Allocated
The NGC and NGCB oversee the rigorous regulation of all individuals, places, practices, and operations linked to the state's gaming sector. Nevada's gaming legislation permits the NGC to levy fines against licensees deemed noncompliant with its rules.
Fines collected by the state gaming authority are allocated to the Nevada General Fund. The $250K penalty imposed on Grand Sierra somewhat balances out another ruling made on Monday, which found that Nevada Restaurant Services Inc., the owner of Dotty’s gaming taverns, was entitled to a $3 million tax reimbursement.
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