“The information was never used to gain a competitive advantage,” Schreck said. Schreck told the commission the information gleaned from the slot machines was never used by the Peppermill. Most keys are generic and work on slot machines of all manufacturers. The key - known in the industry as a 2341 key - is a common tool used by slot machine technicians to gather information or reset a game following verification of a large jackpot. Paganetti told the commission he had reached out to other Northern Nevada casino owners to apologize for slot machine tampering. “It was inappropriate of the Peppermill to be involved in in this type of action.” “I’m sorry for the embarrassment this has caused,” Paganetti said. Peppermill President William Paganetti appeared at the hearing in Las Vegas and read a brief statement, apologizing for the casino’s action.

Commission Chairman Pete Bernhard recused himself on the matter because of a conflict, while Commissioner Joe Brown abstained from the vote. The commission voted 3-0 to accept the settlement. This wasn’t a crime, but it was felony stupid.”

“I’m not trying to make excuses of the seriousness of the action,” Schreck said. Attorney Frank Schreck, representing the Peppermill’s ownership, said the Washoe County District Attorney declined to prosecute the casino and the employee. Nevada Gaming Commission members questioned the size of the fine, but they were also told the actions were not deemed criminal. State gaming regulators signed off on a $1 million fine Thursday against owners of the Peppermill Casino in Reno after the property’s owners admitted they allowed an employee to use a common slot machine “reset” key on games operated by competing Northern Nevada casinos to steal proprietary information. An image from eBay shows an IGT jackpot reset key.

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