The Nevada Gaming Control Board held a multi-hour regulatory workshop on Tuesday, touching on rules that span several different sections of the state’s gaming industry. This was the third such workshop the board has held this month as it continues its quest to streamline and modernise Nevada’s longstanding regulatory code.
Stakeholders have maintained for years that Nevada lags behind newer gaming jurisdictions in terms of efficiency and technology, especially with regard to games and systems regulations. As such, the board has prioritised applicable rule changes for multiple years now in an effort to keep the Silver State the “gold standard” of US gaming.
Among the proposed amendments discussed at Tuesday’s workshop were slot and table game testing and approvals, expanded usage of wagering accounts, cloud computing services and other, smaller changes. Most of these changes aimed to reduce red tape and were thus largely endorsed by representatives save for legal technicalities.
The discussion represented the beginning of what is a multi-step process. In Nevada, the board does much of the day-to-day legwork, but the Nevada Gaming Commission has final authority. Any matters recommended by the board must be finalised by the commission, but regulatory changes often require multiple discussions. Such was the case on Tuesday, as some of the changes were advanced while others were tabled.
Overall, the proposed changes fall into the wheelhouse of NGCB Chair Mike Dreitzer, who took office in June. Dreitzer previously held senior roles at suppliers including Gaming Arts, Ainsworth and BMM Testlabs.
Dreitzer said the proposed changes “represent what we believe to be a good and carefully considered step forward in the process”, but the most optimal regulations “will come when we all work together” to craft them.
Game-related rules at heart of regulatory workshop
The most extensive updates and discussion centred around Regulation 14, which pertains to updating and streamlining the game approval process. Many of these changes were necessitated legislatively through the passage of Assembly Bill 58 in June.
Jeremy Eberwein, deputy chief for the board, was the main correspondent in detailing the updates. This overhaul in particular, he said, was inspired to keep Nevada competitive from a product standpoint.
“A lot of the areas that we’ve looked at here are just areas that have been problematic for submissions over the past 10 years,” Eberwein said. “The changes we’ve made here are our best foot forward in trying to bring everything into alignment.”
From an industry standpoint, the changes were largely welcomed. Two representatives from the Association for Gaming Equipment Manufacturers – President Daron Dorsey and counsel Dan Reaser – were appreciative save for a few clarifications. The biggest pertained to the removal of an “adaptive play” regulation, which in laymen’s terms prohibits so-called “skill games” in the state.
Reaser helped craft that rule and warned that its removal could be construed as opening a loophole. Skill games have proliferated in several states such as Pennsylvania and Virginia, but the board stressed that this would not happen in Nevada. Members ultimately recommended the changes to advance to the commission.
“We know this is a multi-step process and so we look forward to engaging that with AGEM on behalf of our members and the supplier sector,” Dorsey said.
Addressing wagering accounts and cloud computing
The other primary discussion point in the regulatory workshop concerned proposed changes to Regulation 5. Board members are seeking to expand wagering accounts to be funded by casino chips, with chips also being added as a withdrawal option. Additionally, rules for providers of cloud computing services would be loosened to allow more freedom for operators in choosing partners.
Expanding patrons’ wagering account uses and options has been a focal point for Nevada regulators. Last year, the state approved the use of wagering accounts for other purchases at casino properties, a huge step forward for the payments sector. Gaming has been slow to adopt new banking technologies despite patrons’ expectations from experience in the retail sector.
On the cloud computing side, Eberwein explained the board has had difficulty enforcing the current rules, which were implemented years ago. Regulators have come to understand that what cloud providers do is not overtly related to gaming, he said.
Attorney Erica Okerberg, representing Amazon Web Services, supported the changes and offered small technicalities to ensure clarity. Meanwhile, MGM legal counsel Chandler Pohl argued that operators’ rules should be changed in tandem to protect their liabilities as well. The matter was tabled for further discussion.
Two other small matters pertaining to gross revenue calculations and interactive gaming system disclosures were approved with no comments.
Jess Marquez
Jess has covered the global gaming industry since 2022. A native of Reno, Nevada, he’d like to note that it’s Ne-va-da, not Ne-VAH-da.
Nevada officials aim to overhaul and streamline the state’s regulations to keep up with gaming industry’s evolution.