Slot machine flaw could erase jackpots

By Liz Benston (contact)

Thursday, July 25, 2002 | 11:09 a.m.

Nevada gaming regulators are investigating a flaw in slot machines made by Nevada companies International Game Technology and Bally Gaming and Systems that could deprive players of potential jackpots.

The state Gaming Control Board is examining the computer chips in the machines to determine the exact nature of the glitch, board member Scott Scherer said today.

Depending on the seriousness of the glitch, IGT and Bally could be forced to change out the chips or issue a warning to slot operators recommending that casinos themselves fix the machines.

The board may also recommend that no action be taken, Scherer said.

Illinois regulators, also notified of the problem, last month required the companies to fix the problem within 30 days. The companies failed to meet that deadline Monday, prompting the Illinois Gaming Board to shut down the nearly 600 machines in question -- or about 6 percent of the slots operating in that state.

All states where the companies have slot machines may have been alerted to the problem. Equipment makers typically self-report problems to every jurisdiction where their games are regulated.

At issue are computer chips in the machines that store information such as payout percentages and game outcomes. About two months ago, the Illinois Gaming Board was informed by an independent testing lab that some chips made by IGT and Bally had the potential to lose accounting and progressive play information. The flawed chips were present in 57 different machines made by the two companies.

Illinois regulators directed the companies to replace the defective chips on June 21. On Monday, IGT asked for an extension to fix the problem. Regulators denied the request and ordered the machines shut down Monday night until they were repaired. Nearly all of the machines were fixed by Wednesday.

Authorities estimate the shutdown cost the state an estimated $172,000 in gaming tax revenue.

The machines have a minor glitch in their internal accounting function, said Ed Rogich, vice president of marketing for IGT.

Illinois Gaming Board spokesman Gene O'Shea said the state gave the companies a 30 day window to fix the problem because there was only a "miniscule" chance that players' jackpots could be denied.

The board has no proof that any of the machines in question failed, he said. Rogich said the games are not flawed.

It's not unusual for regulators to discover glitches after machines have already been approved for play, Rogich said.

"When a game's developed, you don't have the capability to put it out on a widespread basis to test every possibility and probability that will occur in the field."

Had the problem been serious, the machines would have been shut down immediately, he said.

"We were aware of the deadline, we were within days of meeting the deadline and were working with regulators" to change out the programs in the machines, he added.

Representatives at Bally, a unit of Las Vegas-based Alliance Gaming Corp., could not be reached for comment.

Park Place Entertainment Corp. spokeswoman Debbie Munch said the company isn't aware of any incidents of irregularities in its slot machines.

The company, which receives regular notifications from manufacturers on changes or upgrades, also stays on top of monitoring its own machines, she said.

"We constantly monitor the operation of our slot machines and their computer chips and we upgrade them whenever there is a problem."

The last time Illinois regulators shut down machines was over a year ago. In that case, players of some slot machines discovered they could receive free credits by jamming the machines' bill intake systems. More than 1,600 machines, made by WMS Gaming of Chicago, were put down immediately.

The board could still decide to take disciplinary action against IGT and Bally for failing to correct the programs in a timely manner, O'Shea said.