Commission orders $2K fines for 2 rural gaming operations

The Nevada Gaming Commission has disciplined two rural gaming licensees with $2,000 fines for their unsuitable methods of operation.

In separate unanimous votes Thursday, commissioners approved settlements with Tahoe Nugget Inc., operating Jim Kelley’s Tahoe Nugget in Crystal Bay, and S&P Gaming Inc., doing business as The Watering Hole in Spring Creek, near Elko.

Under terms of the settlement agreements, the two licensees were ordered to pay $2,000 fines, admitted to allegations from Nevada Gaming Control Board agents and waived the right to a hearing.

The settlement agreement in the Tahoe Nugget case was signed by President James Kelley and General Manager and Vice President Jeffrey Kelley. The Control Board also ordered the Tahoe Nugget to hire a compliance officer to prevent further problems.

That case involved a two-count complaint involving employee compliance issues. According to a Control Board complaint signed June 9, Tahoe Nugget failed to notify regulators of hirings and firings of registered gaming employees as required by regulations in 2022 and 2023. The complaint also said the Kelleys failed to notify the board of management contact information.

Deputy Attorney General John Michela, who presented the complaint before the commission, said the lack of contact information was a problem because the public would be unable to air operational concerns with casino management.

Jeffrey Kelley, who appeared Thursday via Zoom, told commissioners he has already hired a compliance officer and that all contact information has been given to the board.

The Tahoe Nugget, located near Stateline at Lake Tahoe, has 169 slot machines, 14 video poker machines and conducts live poker games.

The settlement agreement in the Watering Hole case was signed by President and CEO Peter Lusich III and Diane Lusich.

That case involved a three-count complaint involving the company’s failure to notify regulators of changes in ownership interests. According to a Control Board complaint signed April 27, the Lusiches, in 2020, did not tell the Control Board about changes in the company’s ownership interest.

The Lusiches appeared before the commission from Carson City Thursday, but did not have any further comments about the matter.

In response to a commission inquiry, Michela said the $2,000 fine amount was based on previous similar instances. Recommended fines in such cases range from $500 to $5,000.

In other business Thursday, the commission approved new licensing for 15 slot machines each at 30 Albertson’s stores.

Jett Gaming LLC, doing business as Terrible’s Gaming, was approved as the slot-route operator that would service the 450 machines for Albertson’s.

Commissioners also unanimously approved horse races to be conducted by Agriculture District No. 13 in Ely Aug. 18-20, and by the Elko County Fair Board in Elko Aug. 25 through Sept. 4.

Horse races in eastern Nevada feature thoroughbreds and quarter horses and are well-attended county fair events. Parimutuel wagering is permitted on the races and there normally are six to 10 races a day.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.