SB46 - Revises provisions governing gaming. (BDR 41-298)

- 83rd Session (2025) Senate Bill No. 46–Committee on Judiciary CHAPTER.......... AN ACT relating to gaming; retaining the jurisdiction of the Nevada Gaming Control Board and the Nevada Gaming Commission under certain circumstances; requiring the Commission to adopt regulations governing such jurisdiction and the surrender or attempted surrender of a license, registration, finding of suitability or preliminary finding of suitability; revising the definition of “hearing examiner”; revising certain provisions governing investigative hearings and judicial review related to the licensing and control of gaming; authorizing the Board and Commission to require a finding of suitability or the licensing of any person who conducts a tournament or contest on behalf of or in conjunction with a gaming licensee; revising provisions governing the voluntary surrender of a gaming license; revising the fines for certain violations relating to the licensing and control of gaming; revising provisions governing the judicial review of certain decisions by the Board and the Commission; revising provisions relating to the resolution of certain claims by patrons regarding gaming debts; repealing provisions governing the registration or licensing of persons conducting certain tournaments or contests in association with a gaming licensee; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires the Nevada Gaming Control Board to make investigations and initiate a hearing by filing a complaint with the Nevada Gaming Commission if the Board is satisfied that a person or entity which is licensed, registered, found suitable or found preliminarily suitable or which previously obtained approval for an activity for which Commission approval was required or permitted should be limited, conditioned, suspended, revoked or fined. (NRS 463.310) Section 1 of this bill: (1) retains the jurisdiction of the Board and the Commission after a person who is licensed, registered, found suitable or preliminarily found suitable is no longer engaged in the activity or position for which Board or Commission approval was required; (2) provides that the surrender or attempted surrender of a license, registration, finding of suitability or preliminary finding of suitability is not effective until accepted by the Board; and (3) requires the Commission to adopt regulations governing such jurisdiction and the surrender or attempted surrender of a license, registration, finding of suitability or preliminary finding of suitability. Existing law defines the term “hearing examiner” to include any person authorized by the Board or the Commission to conduct investigative hearings. (NRS 463.0163) Section 2 of this bill revises the definition of the term “hearing examiner” to specify that such an examiner includes a person authorized by the Chair of the Board or Commission. Sections 3 and 8 of this bill make similar changes to provide that a hearing examiner is a person authorized by the Chair of – 2 – - 83rd Session (2025) the Board. Existing law authorizes investigative hearings to be conducted by one or more members of the Board with the concurrence of a majority of the Board. (NRS 463.110) Section 3 removes the necessity for the concurrence of a majority of the Board. Existing law authorizes the Board and Commission to require a finding of suitability or the licensing of certain persons who own or perform certain acts related to gaming. (NRS 463.162) Section 4 of this bill adds persons who conduct a tournament or contest on behalf of or in conjunction with a gaming licensee to the list of persons for which the Board and Commission may require a finding of suitability or licensing. Existing law provides that a voluntary surrender of a license by a licensee does not become effective until accepted in the manner prescribed by regulations adopted by the Commission. (NRS 463.270) Section 5 of this bill makes a conforming change to reference the regulations adopted by the Commission in accordance with section 1. Existing law establishes fines of not less than $25,000 and not more than $250,000 for each separate violation by certain nonrestricted licensees to report and maintain records of all transactions involving cash. Additionally, existing law establishes fines of not more than $100,000 for certain violations which are the subject of an initial complaint and not more than $250,000 for each separate violation which is the subject of any subsequent complaint. (NRS 463.125, 463.310) Section 6 of this bill removes the separate fines for failure to maintain records involving cash, and increases all fines to not more than $500,000 for each separate violation which is the subject of an initial complaint and $1,000,000 for each separate violation which is the subject of a subsequent complaint. Existing law establishes a process for the judicial review of certain decisions by the Commission, including the requirement that the Commission prepare and file the record on review. (NRS 463.316, 463.3664, 463A.190) Sections 7, 8.3 and 8.7 of this bill: (1) require the Board or the Commission, as applicable, to transmit, instead of file, the record on review to the reviewing court; and (2) provide that failure of the petitioner to pay the costs and fees prescribed by the Board or the Commission, as applicable, is grounds for dismissal of the petition filed with the court. Existing law allows a claim by a patron of a licensee for payment of a gaming debt which is not evidenced by a credit instrument and which is for less than $500 to be resolved by a hearing examiner designated by the Board. (NRS 463.361) Section 8 of this bill: (1) raises the threshold for the resolution of such a claim to $1,000; and (2) provides for the designation of a hearing officer by the Chair of the Board instead of the Board. Existing law requires the registration or licensing of a person conducting certain tournaments or contests in association with a gaming licensee. (NRS 463.169) Section 9 of this bill repeals that requirement, and section 4 instead authorizes the Board and Commission to require a person conducting such tournaments to acquire a finding of suitability or a license. – 3 – - 83rd Session (2025) EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 463 of NRS is hereby amended by adding thereto a new section to read as follows: 1. The jurisdiction of the Board to investigate and initiate a hearing before the Commission pursuant to NRS 463.310, and the jurisdiction of the Commission to conduct proceedings and impose discipline in accordance with NRS 463.310 to 463.3145, inclusive, is fully retained and may only be divested pursuant to regulations adopted by the Commission for any circumstance where a person licensed, registered, found suitable or preliminarily found suitable by the Board or Commission pursuant to this chapter or chapter 462, 464 or 466 of NRS is no longer engaged in the activity or in the position for which Board or Commission approval was issued or granted. 2. The surrender or attempted surrender of a license, registration, finding of suitability or preliminary finding of suitability is not effective until accepted by the Board in the manner provided in the regulations of the Commission. 3. The Commission shall adopt regulations that prescribe a reasonable period: (a) After which the jurisdiction of the Board and Commission is divested and that govern the continuing jurisdiction of the Board and Commission pursuant to subsection 1; and (b) For the Board to accept a surrender or attempted surrender of a license, registration, finding of suitability or preliminary finding of suitability and that govern the surrender or attempted surrender pursuant to subsection 2. Sec. 2. NRS 463.0163 is hereby amended to read as follows: 463.0163 “Hearing examiner” means a member of the Nevada Gaming Control Board or Nevada Gaming Commission or other person authorized by the Chair of the Nevada Gaming Control Board or the Chair of the Nevada Gaming Commission to conduct investigative hearings. Sec. 3. NRS 463.110 is hereby amended to read as follows: 463.110 1. The Board may hold regular and special meetings at such times and places as it may deem convenient, and it may hold at least one regular meeting each month. – 4 – - 83rd Session (2025) 2. All meetings of the Board are open to the public except for investigative hearings which may be conducted in private at the discretion of the Board or hearing examiner. 3. A majority of the members constitutes a quorum of the Board, and a majority of members present at any meeting determines the action of the Board. 4. Investigative hearings may be conducted by one or more members , [with the concurrence of a majority of the Board,] or by a hearing examiner [appointed] authorized by the Chair of the Board, without notice, at such times and places, within or without the State of Nevada, as may be convenient. Sec. 4. NRS 463.162 is hereby amended to read as follows: 463.162 1. Except as otherwise provided in subsections 2 and 3 and NRS 463.1725, it is unlawful for any person to: (a) Lend, let, lease or otherwise deliver or furnish any equipment of any gambling game, including any slot machine, for any interest, percentage or share of the money or property played, under guise of any agreement whatever, without having first procured a state gaming license. (b) Lend, let, lease or otherwise deliver or furnish, except by a bona fide sale or capital lease, any slot machine under guise of any agreement whereby any consideration is paid or is payable for the right to possess or use that slot machine, whether the consideration is measured by a percentage of the revenue derived from the machine or by a fixed fee or otherwise, without having first procured a state gaming license for the slot machine. (c) Furnish services or property, real or personal, on the basis of a contract, lease or license, pursuant to which that person receives payments based on earnings or profits from any gambling game, including any slot machine, without having first procured a state gaming license. 2. The provisions of subsection 1 do not apply to any person: (a) Whose payments are a fixed sum determined in advance on a bona fide basis for the furnishing of services or property other than a slot machine. (b) Who furnishes services or property under a bona fide rental agreement or security agreement for gaming equipment. (c) That is a wholly owned subsidiary of: (1) A corporation, limited partnership or limited-liability company holding a state gaming license; or (2) A holding company or intermediary company, or publicly traded corporation, that has registered pursuant to NRS 463.585 or 463.635 and which has fully complied with the laws applicable to it. – 5 – - 83rd Session (2025) (d) Who is licensed as a manufacturer or distributor pursuant to NRS 463.650. (e) Who is found suitable by the Commission to act as an independent agent.  Receipts or rentals or charges for real property, personal property or services do not lose their character as payments of a fixed sum or as bona fide because of provisions in a contract, lease or license for adjustments in charges, rentals or fees on account of changes in taxes or assessments, escalations in the cost-of-living index, expansions or improvement of facilities, or changes in services supplied. Receipts of rentals or charges based on percentage between a corporate licensee or a licensee who is a limited partnership or limited-liability company and the entities enumerated in paragraph (c) are permitted under this subsection. 3. The Commission may, upon the issuance of its approval or a finding of suitability, exempt a holding company from the licensing requirements of subsection 1. 4. The Board may require any person exempted by the provisions of subsection 2 or paragraph (b) of subsection 1 to provide such information as it may require to perform its investigative duties. 5. The Board and the Commission may require a finding of suitability or the licensing of any person who: (a) Owns any interest in the premises of a licensed establishment or owns any interest in real property used by a licensed establishment whether the person leases the property directly to the licensee or through an intermediary. (b) Repairs, rebuilds or modifies any gaming device. (c) Manufactures or distributes chips or gaming tokens for use in this state. (d) Operates a call center within this State as an agent of a licensed race book or sports pool in this State in accordance with the regulations adopted by the Commission. (e) Has invented, has developed or owns the intellectual property rights to a game for which approval by the Commission is being sought or has been received in accordance with the regulations adopted by the Commission. (f) Conducts a tournament or contest on behalf of or in conjunction with a gaming licensee. 6. If the Commission finds a person described in subsection 5 unsuitable, a licensee shall not enter into any contract or agreement with that person without the prior approval of the Commission. Any other agreement between the licensee and that person must be – 6 – - 83rd Session (2025) terminated upon receipt of notice of the action by the Commission. Any agreement between a licensee and a person described in subsection 5 shall be deemed to include a provision for its termination without liability on the part of the licensee upon a finding by the Commission that the person is unsuitable. Failure expressly to include that condition in the agreement is not a defense in any action brought pursuant to this section to terminate the agreement. If the application is not presented to the Board within 30 days after demand, the Commission may pursue any remedy or combination of remedies provided in this chapter. Sec. 5. NRS 463.270 is hereby amended to read as follows: 463.270 1. Subject to the power of the Commission to deny, revoke, suspend, condition or limit licenses, any state license in force may be renewed by the Commission for the next succeeding license period upon proper application for renewal and payment of state license fees and taxes as required by law and the regulations of the Commission. 2. All state gaming licenses are subject to renewal on the first day of each January and all quarterly [Text truncated for display. Full text available on LegiScan.]