, the Nevada Gaming Control Board returned the case to a hearing officer tasked with investigating the incident.
The Board wants the hearing officer to collect more information before it makes a decision.
The officer previously had recommended the jackpot be paid out.
Bad-beat jackpots are funded by extra rake paid by the poker players themselves.
In June, poker player Avi Shamir lost with straight flush to a higher one from Len Schreter.
The bad-beat jackpot stood at $120,000, and players at Red Rock sister casinos were also eligible for a cash prize thanks to being at a table when the bad beat occurred.
More than 80 players were involved, but Shamir and Schreter had by far the most on the line.
Shamir thought he had won $60,000, while Schreter believed he was $30,000 richer. Schreter had turned over his cards before the hand was over, an honest mistake but one that Red Rock said invalidated the jackpot.
His error didn’t affect the outcome of the hand, and so eventually there was a legitimate complaint with the Gaming Control Board.
A new wrinkle in the case recently occurred when Schreter reportedly withdrew his complaint. They also want the hearing officer to provide more information on the set of rules that Red Rock used to invalidate the hand.
The casino’s parent company, Station Casinos, can appeal the ruling in court if regulators say it needs to pay the players.
Red Rock and its 20-table poker room sit far off the Las Vegas Strip, which is part of its strategy to cater to the locals market. Red Rock fighting over $120K, the negative publicity has already cost more the $120k.