Regulators probe slot maker over silence on flaw

Tuesday, June 5, 2001 | 11:02 a.m.

A software glitch that compromised the security of slot machines manufactured by WMS Gaming Inc. has triggered an investigation by the Michigan Gaming Control Board.

The Detroit News reported today that Michigan gaming regulators have set a hearing to address the matter June 20. The board believes WMS may have known about the problem as early as December 1999, but failed to inform the board about the glitches until earlier this year. The newspaper said the board is considering fines or other disciplinary action against WMS over the issue.

"The apparent inadequacy of design, testing and implementation of software by WMS indicates WMS may not possess the level of skill required of a licensed gaming manufacturer," the board stated.

This morning, a member of the Nevada Gaming Control Board raised the possibility WMS may face disciplinary action here as well.

"We'd want to see what comes of the Michigan complaint," said Scott Scherer. "If it turns out (WMS) knew about it in December 1999 and didn't inform us right away ... that would be a concern. If they didn't notify the (control board) laboratory promptly, that certainly might give rise to disciplinary action.

"We'd certainly want an explanation of why that occurred."

The control board and Nevada casinos were informed about the glitch in April. The weakness allows players to manipulate the machines' bill acceptors and accumulate more credits than have been paid for.

Nevada has approved the software that corrects this problem, and that software is now being installed in WMS machines across the state, Scherer said.

"Hopefully they've retrofitted (the machines) by now," Scherer said.