What are the rules for paying out progressives when a casino shuts down? I know that the Mirage put on a big show to "dispose" of their progressives. When places like Tropicana, Poker Palace, or the casinos in Primm shut down, what happened to their progressives? I don't recall much fanfare.
In Nevada, progressive jackpot funds are considered an obligation to the players. They're not the casino's money. Casinos must handle them in the manner that's spelled out in Nevada Gaming Control Board Regulation 5.110.
Options typically include: paying out the progressives directly via promotions, guaranteed giveaways, or random drops before closure; transferring the funds to similar progressive machines at affiliated/sister properties (common for the big casino corporations); and distributing them via other approved methods.
Regulators require a plan, but the method can vary.
Wide-area progressives, such as Megabucks, are typically handled by the network provider, such as IGT.
You're right that the Mirage (operated by Hard Rock) made a big public spectacle of it. The "Progressive Finale Cash Giveaway" paid out about $1.6 million ($1.2 million from slots $400,000 from table-game progressives) in the final week before closing. This created some buzz and foot traffic in the casino's last days.
The Tropicana closed with relatively little fanfare concerning the progressives. As part of a larger company, it could transfer the incremental jackpot amounts to progressive machines at other affiliated properties. This is standard for chain casinos and avoids a full public giveaway. No major public "disposal" event was reported, at least that we were ever aware of.
Similarly, Poker Palace was a temporary closure when it was sold. Closures of small locals properties often fly under the radar unless there's a full permanent shutdown without affiliates. Poker Palace progressives were likely transferred or handled per standard procedures during the ownership change, with no notable public pizzazz.
And if it's starting to sound like a broken record, the Primm properties are just that. Under Affinity Gaming, Whiskey Pete's and Buffalo Bills were phased closures with nothing announced or publicized. Likely, the jackpots were incorporated at Primm Valley or Affinity's many other casinos. Same with Primm Valley when it closed on July 2. Primm's closures were more about operational and business shifts, so little public attention was paid to progressives.
We recall that the Riviera ran a big promotion for disposing of its progressive jackpots, but that was the exception for an independent standalone casino.
Again, this is how it works here in the Silver State. Other states have their own rules, but the principle that progressives are player obligations is common.
