MI: Gaming board charges slot maker didn't report glitches

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DETROIT -- A manufacturer of more than 1,300 slot machines in Detroit casinos is being called on the carpet by the Michigan Gaming Control Board for allegedly failing to notify the regulator about slot problems that could enable gamblers to cheat the casinos by playing for free.
   The company's fitness to continue as a supplier to Michigan casinos also is being reviewed by regulators, documents show.
   The board has set a hearing into the matter for June 20. WMS Gaming Inc., the publicly traded maker of such slot brands as Monopoly, Reel 'em In and Jackpot Party, will be given an opportunity to respond to the allegations and show it's now complying with state law.
   If the allegations are proven true, WMS could face fines or other disciplinary action.
   The Waukegan, Ill., company in December 1999 became aware of software problems enabling gamblers to collect more wagering credits than they were entitled to, the board alleged. Similar glitches continued into April 2001.
   "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.
   WMS declined to comment.
   The board also alleged that:
   * WMS failed to provide adequate and timely notification of problems to the board.
   * WMS failed to tell the board of negotiations with MGM Grand Detroit Casino related to losses sustained by the casino due in large measure to one particular software problem. That glitch gave free credits when a gambler repeatedly pressed buttons on a button panel after inserting a bill. WMS ultimately reached a $1.2-million settlement with MGM, the board said.
   * Documents submitted by WMS to regulators differed in appearance from records obtained by the board from MGM. "These differences suggest changes were made to the original documents by WMS," the board said.
   WMS slot machines at MGM, MotorCity Casino and Greektown Casino were susceptible to a second glitch, also involving the bill acceptor. But the board minimized casino losses by almost immediately ordering the WMS machines shut down or operated under restrictions.

Detroit News

-- Anonymous, June 06, 2001


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