Bally Technologies will pay a $175,000 civil penalty to Arizona for violating the protocol of tribal gaming compacts when it shipped software for electronic games directly to casinos instead of tribal gaming offices, the Arizona Department of Gaming said Monday.
It was the largest fine in state history for a gaming device manufacturer.
“A comprehensive regulatory structure ensures the integrity of all authorized gaming operations,” said Mark Brnovich, department director, in a statement. “Vendors serving our tribal partners will always be held to the highest standards of quality and integrity.”
On Feb. 10, Arizona officials sent a letter to the company saying the department planned to suspend Bally’s state certification. The department cited concerns over the company’s failure to provide it with advanced notice of shipments of gaming device software to Arizona casinos and shipping software directly to casino operation employees instead of to appropriate authorities at the gaming offices.
Arizona regulators kept all of this software from reaching the gaming floors before being verified, the department said.
“Beyond the civil penalty, Bally is instituting the necessary internal procedures to avoid further breaches of protocol,” Brnovich said.