The state has fined Gulfstream Park $800,000 for security failures that allowed employees to steal hundreds of thousands of dollars from slot machines by using free-play cards.

In an order filed Friday, the state's Department of Business and Professional Regulation said the Hallandale Beach casino was lax in overseeing the use of the cards allowing employees to load the cards with much more money than authorized.

According to the department's complaint: ``The unauthorized issuance and use of test cards with excessive amounts of money loaded onto them was largely, if not completely, unchecked -- there were no facility procedures or regulations governing the issuance or check out of test cards, nor receipts issued when test cards were turned in.''

The department fined Gulfstream $800,000 -- $100,000 for each count.

Officials with Gulfstream declined to comment Friday evening, citing the late hour at which the state filed the order.

The penalty follows a two-year inquiry by the state -- and a criminal investigation that resulted in the conviction of one employee for cheating and organized fraud. Other employees were fired or suspended but not charged.

In September 2007, employees at Gulfstream caught a patron playing slots -- for free -- by using a card that was only meant to test the machines.

Investigators found that a slots technician had given the man the test cards and shared the money he won.

A subsequent investigation found that many cards that were normally worth about $5 of play had instead been loaded with hundreds of dollars.

According to the complaint, the test cards were not tracked -- no unique serial numbers, sign-out requirements or system for logging them.

``Management was unaware of how many test cards may have been made or who might have used them,'' the documents say.

Scott Ross, a deputy secretary at the Department of Business and Professional Regulation, said casino gaming is a highly regulated industry.

``Obviously, we can't be watching them 24-7, so they're expected to create internal controls at their property,'' he said.

``We expect them to follow those internal controls.''

It was unclear if the owner of Gulfstream Park, Magna Entertainment, would even be able to pay the fine. The company is in bankruptcy.

Ross said the department is only dealing with the allegations.

``How that's all going to play out, I can't really speak to,'' he said.

The Florida Department of Law Enforcement investigation concluded that the park also owes $144,000 in back taxes -- an issue the regulation department is still looking into with the help of the attorney general's office, Ross said.

He said if that investigation determines that Gulfstream does indeed owe back taxes, that will be dealt with separately.

Steve Geller, an expert on gambling issues and former state senator, said he understands why the department made its decision to penalize Gulfstream -- but he doesn't necessarily agree with it.

``The single most important thing when you're dealing with gambling is the integrity of the system,'' said Geller, who is not representing either side in the case.

``You cannot have any questions whatsoever as to whether the system is honest.''

But, he said, Gulfstream was victimized in the scheme.

``I think they've already been punished by losing hundreds of thousands of dollars or more,'' Geller said.

Miami Herald staff writers Mary Ellen Klas and Marc Caputo contributed to this report.