Nevada's War on Illegal Online Gaming Gains Momentum
Nevada is edging closer to implementing stricter regulations on online gaming platforms operating in its jurisdiction without approval.
LISTEN TO THIS ARTICLE:The Nevada legislature has recently approved a bill in both chambers that will impose higher penalties for unauthorized gambling platforms.
The legislation, SB 256, sponsored by Senator Rochelle Nguyen, passed in the Assembly last week with a unanimous vote of 42-0 after clearing the Senate earlier this month. After the Assembly makes minor adjustments, the bill will return to the Senate for final approval. It will then be sent to Governor Joe Lombardo for signature.
Although SB 256 does not specifically name sweepstakes casinos, its provisions would apply to these types of operations, which often exploit regulatory loopholes to offer unlicensed gambling services.
Three-Pronged Approach to Regulation
During the Nevada Senate Judiciary Committee hearing in March, Janice Wong, an intern for Senator Rochelle Nguyen, said the legislation has three key components. The first mandates disgorgement of profits, requiring guilty operators to forfeit all financial gains from illegal gaming activities, with the funds going to the state.
Secondly, the bill increases criminal penalties. Fines will be higher, and some offenses will be reclassified from misdemeanors to felonies, carrying more serious repercussions for violators.
The bill's third key aspect is its extraterritorial reach, enabling authorities to pursue out-of-state operators that accept bets from Nevada residents.
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Industry Support for SB 256
The Nevada Resort Association and the Vegas Chamber of Commerce have endorsed the bill, citing its potential to protect the state's casino industry.
The group contends that online casinos pose a threat to brick-and-mortar casinos in Las Vegas and Reno, as they could lead to potential losses in tourism revenue and put jobs at risk.
Although Nevada regulates sports betting, bettors must register in person at casinos before they can wager online.
In related news, Montana has become the first state in the US to ban sweepstake games and other forms of online gambling. With SB 256's progress, Nevada may soon become the second US jurisdiction with the toughest online gaming regulations.
RELATED TOPICS: Regulation
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