Rio agrees to $25,000 fine

Tuesday, June 22, 1999 | 11:42 a.m.

CARSON CITY -- Rather than risk the chance of being hit with a fine of several hundred thousand dollars, the Rio Suite Hotel & Casino agreed to pay a $25,000 penalty for allowing minors to play slot machines and loiter in gaming areas.

The settlement of the disciplinary complaint filed last September by the state Gaming Control Board will be presented this Thursday for approval to the state Gaming Commission, which meets in Carson City. The agreement was signed by John Lipkowitz, president of the Rio Suite, and Control Board Chairman Steve DuCharme and members Dennis Neilander and Bobby Siller.

The board said its undercover agents saw a 20-year-old man and a 20-year-old woman playing slot machines at the Rio last July 18. And there were juveniles ages 15, 16 and 18 in the casino area, which is against regulations.

A week later, agents said many boys and girls who appeared to be under 21 years old were loitering around the slot machines and the gaming area. The original complaint sought fines up to $500,000.

Rio, in its settlement, admits the violations but said they were "neither intentional nor the result of willful disregard for regulatory compliance."

The resort said it has long had policies to prevent underage gaming or those under 21 from coming into the gaming area.

There are training programs for new employees, updated education for existing workers, communication from management to beware of children in the casino and signs have been posted summarizing Nevada law prohibiting underage gaming.

Regular security sweeps are conducted each shift to find those who are underage.

Since 1995, records of the Rio show about 4,000 persons are approached each month for verification of age. The club said the Gaming Commission should take into account the "Rio's commitment to prevention of underage gaming and loitering ..."

The Rio said it is entering into the settlement voluntarily. It is not the product of force or threats, said the Rio, but the result of negotiations between its lawyer Michael Bonner and Control Board attorney Keith Kizer.

The settlement, the Rio says, is "made to avoid litigation and economize resources." And it acknowledges it is giving up its right to a public hearing on the allegations and to cross-examine witnesses.