The Grand Sierra Resort in Reno has agreed to pay the Nevada Gaming Commission (NGC) $250,000 to settle a regulatory complaint stemming from an incident last year. This week, the NGC signed off on the resolution after the Nevada Gaming Control Board (NGCB) raised the complaint against MEI-GSR Holdings, LLC, the business entity operating the Grand Sierra Resort.
The complaint arose when a NGCB agent reported being denied prompt access to the property’s Grand Theatre during a routine inspection on December 19, 2023. Michael Somps, a senior deputy attorney general in the Nevada Attorney General’s Office who represented the state, explained that a Gaming Enforcement Division agent arrived at the casino and bypassed a metal detector outside the theater’s entrance. Despite displaying his NGCB badge and credentials, casino security insisted the agent relinquish his firearm before entering.
After approximately six minutes, resort higher-ups informed the security personnel that the gaming agent could enter the theater with his weapon. Somps highlighted that state gaming agents are to have immediate and full access to “all portions of the premises,” with the definition of premises being “curb to curb.” He explained that these inspections ensure no illegal gambling or other unlawful activity is occurring within the licensed gaming facilities.
While brief delays are not unusual, the delay in this instance, which the agent contended lasted longer than six minutes, is atypical. This incident, coupled with a similar scenario in 2021 where a third-party security guard also impeded a gaming agent’s immediate access, prompted the $250,000 penalty against the resort. According to Somps, “Licensees have a long history of complying and granting Board agents immediate access to all portions of the premises. The Board views the Grand Sierra Resort’s violation seriously and maintains that licensees and their employees understand that any Board agent be given immediate access to any portion of the premises of the gaming establishment after they display their credentials.”
The Meruelo Group, the parent company of the Grand Sierra Resort controlled by billionaire Alex Meruelo, did not contest the fine and agreed to settle the complaint. The $250,000 fine coincides with recent charitable actions by Meruelo’s Grand Sierra, which donated $15,000 each to Robert Mitchell Elementary School and Vaughn Middle School, part of the Washoe County School District.
The NGC and NGCB are tasked with the strict regulation of all persons, locations, practices, and activities associated with Nevada’s gaming industry. Under state law, the NGC is authorized to impose fines on noncompliant licensees. Fines collected are directed to the Nevada General Fund. The $250,000 fine against Grand Sierra slightly offsets another recent decision requiring Nevada Restaurant Services Inc., the parent company of Dotty’s gaming taverns, to be refunded $3 million in taxes.
