Gambling 2019

1 Relevant Authorities and Legislation

1.1 Which entities regulate what type of gambling and social/skill gaming activity in your jurisdiction?

Relevant Product

Who regulates it in digital form?

Who regulates it in land-based form?

Gaming

Casino gaming (including slots and casino table games such as roulette & blackjack)

Nevada Gaming Control Board and Nevada Gaming Commission.

Poker

Bingo

Betting

Betting

Nevada Gaming Control Board and Nevada Gaming Commission.

Sports/horse race betting (if regulated separately to other forms of betting)

Fantasy betting (payment to back a 'league' or 'portfolio' selection over a period of time, for example in relation to sport or shares)

Lotteries

Lotteries

Nevada Gaming Control Board and Nevada Gaming Commission. Note, however, that there is no State lottery in Nevada. The only lotteries are “charitable lotteries”.

Social/Skill arrangements

“Social” gaming with no prize in money or money's worth

No regulation of social gaming.

Skill games and competitions with no element of chance

Generally there is no regulation of skill games and competitions with no element of chance in Nevada. That said, however, under some interpretations by the Gaming Control Board, even if there is no element of chance, a skill game may be regulated as a gambling game in certain circumstances when the operator takes a percentage of the gambling “pot” as their payment.

1.2 Specify: (i) the law and regulation that applies to the Relevant Products in your jurisdiction; and (ii) - in broad terms - whether it permits or prohibits the offer of Relevant Products to persons located in your jurisdiction.

Nevada has a two-tier State gaming regulatory system. The Nevada Gaming Control Board (the “Board”) is a three-member, full-time regulatory body consisting of two members and a Chair. The Nevada Gaming Commission (the “Commission”) is a five-member, part-time regulatory body consisting of four members and a Chair. All members of the Board and the Commission are appointed by Nevada's Governor. The Board and the Commission work together to regulate all gambling activity in Nevada. This includes Nevada's large “Nonrestricted” casino resorts, such as those found along the famous Las Vegas Strip. This also includes small “Restricted” gaming locations, such as taverns and convenience stores that have 15 or fewer slot machines, and all race books, sports pools, and race tracks in the State, as well as those companies that serve the gaming industry, such as slot machine manufacturers and distributors. Local city and county licensing authorities in Nevada have concurrent jurisdiction over gaming licensing and also issue gaming business licences to gaming establishments located within their jurisdictions.

Gaming in Nevada is as wide-ranging as can be found anywhere else in the world and includes casino table gaming, slot machines, race books and sports pools, and horse racing. Gaming in the State is authorised and regulated under the State's Gaming Control Act and the Regulations of the Nevada Gaming Commission, which are codified as Chapter 463 of the Nevada Revised Statutes (NRS 463). Other relevant Nevada statutes include: NRS Chapter 368A, which provides for a Live Entertainment Tax; NRS Chapter 462, which regulates lotteries (note that only charitable lotteries are allowed in Nevada, and the large State or multi-State lotteries such as Powerball are not permitted in Nevada); NRS Chapter 463A (regulates gaming employees' labour organisations); NRS 463B, which allows for operation by the State/State appointee of a gaming establishment whose licence is surrendered, lapsed, suspended or revoked; NRS Chapter 464, which regulates pari-mutuel wagering; NRS Chapter 465, which outlines criminal actions and liabilities regarding gaming; and NRS Chapter 466, which covers horse racing.

The Commission also promulgates regulations that cover all aspects of the licensing, operation, accounting, and discipline for gaming licensees. When it comes to anti-money laundering (“AML”) in gaming, Nevada used to have its own set of AML statutes and regulations, but has since deferred to the federal law on this topic and Nevada's casinos are treated as financial institutions under federal law.

2 Application for a Licence and Licence Restrictions

2.1 What regulatory licences, permits, authorisations or other official approvals (collectively, “Licences”) are required for the lawful offer of the Relevant Products to persons located in your jurisdiction?

Generally speaking, the Nevada State licence categories encompass: (a) gambling operators; (b) manufacturers and distributors of gaming devices, mobile gaming systems, or cashless wagering systems; and (c) certain “service providers”. A gambling operator licence is either “Restricted”, which limits the operator to 15 or fewer slot machines (e.g., a tavern), or “Nonrestricted”, which generally allows the operator unlimited slot machines and table games (e.g., a resort-casino-hotel). Local city/county licensing authorities also issue gaming licences, and it is those authorities who have the power to issue liquor licences.

2.2 Where Licences are available, please outline the structure of the relevant licensing regime.

Any person or business entity that wishes to undertake an activity that requires a Nevada gaming licence must first procure such licence before commencing business. Holding companies are required to register with the Commission, and all direct and indirect owners of the applicant are required to be licensed or registered, as applicable. In addition, key officers, directors, and other...