SB203 - Revises provisions relating to the pari-mutuel system of wagering. (BDR 41-608)

- 83rd Session (2025) Senate Bill No. 203–Senator Pazina CHAPTER.......... AN ACT relating to gaming; removing and revising certain provisions relating to the pari-mutuel system of wagering; providing immunity from civil liability for certain agencies, entities and persons relating to the pari-mutuel system of wagering; defining certain terms relating to the pari-mutuel system of wagering; repealing certain provisions relating to the pari-mutuel system of wagering; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires the Nevada Gaming Commission to administer provisions governing the issuance of licenses and to perform various acts relating to the regulation and control of the pari-mutuel system of wagering. (Chapters 463 and 464 of NRS) Existing law: (1) authorizes the Nevada Gaming Control Board to approve an agreement for a disseminator to disseminate a live broadcast from a track where horse or other racing for pari-mutuel wagering is conducted; and (2) establishes a statutory scheme governing the dissemination of live broadcasts and certain information concerning racing. (NRS 463.421-463.427, 463.430-463.480) Section 1.7 of this bill removes the provisions relating to disseminators and instead authorizes a track to directly enter into an agreement with an operator of a race book, sports pool or gambling game. Sections 1-1.3 and 1.6 of this bill make conforming changes to eliminate references to disseminators, and section 2.9 of this bill repeals the relevant provisions of existing law referencing disseminators and the current statutory scheme governing the dissemination of live broadcasts. Section 1.8 of this bill revises the term “service provider” to include an “operator of a system,” as defined by section 2.1 of this bill, for purposes of registering such operators with the Board rather than requiring the operators to be licensed by the Commission. Section 2.9 repeals the corresponding provision governing fees paid by an operator of a system, and sections 1.4 and 1.5 of this bill make conforming changes to remove references to the repealed fees. Section 2 of this bill provides that the State of Nevada, the Commission, the Board, the Off-Track Pari-Mutuel Wagering Committee and certain other persons are immune from civil liability for any decision or action taken in good faith and without malicious intent in carrying out the provisions of law relating to the pari- mutuel system of wagering. Section 2.1 defines certain terms for purposes of the pari-mutuel system of wagering and, sections 2.4, 2.6 and 2.7 of this bill make conforming changes to incorporate those terms. Existing law requires certain persons who operate, carry on, conduct or maintain any form of wagering under the pari-mutuel system of wagering to be licensed. (NRS 464.010) Section 2.2 of this bill additionally provides that such persons may be found suitable, registered or approved for such purposes. Sections 2.5 and 2.8 of this bill make conforming changes to incorporate the changes allowing for registration. Section 2.3 of this bill provides that neither the off-track pari-mutuel system nor the operator of a system must be physically present in this State under certain circumstances. – 2 – - 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. NRS 463.0157 is hereby amended to read as follows: 463.0157 1. “Gaming employee” means any employee, temporary employee or other representative of an operator of a slot route, the operator of a pari-mutuel system, the operator of an inter- casino linked system or a manufacturer, distributor or disseminator, or a gaming establishment licensed to conduct any game, 16 or more slot machines, a race book, sports pool or pari-mutuel wagering, whose job duties pertain to the operation, control or outcome of any gambling game or the access, transport or review of any gaming revenue, including, without limitation: (a) Accounting or internal auditing personnel who are directly involved in any recordkeeping or the examination of records associated with revenue from gaming; (b) Table games personnel; (c) Cage and counting room personnel; (d) Slot personnel; (e) Keno personnel; (f) Race book and sports pool personnel; (g) Employees of a person required by NRS 464.010 to be [licensed] registered to operate an off-track pari-mutuel system; (h) [Employees of a person required by NRS 463.430 to be licensed to disseminate information concerning racing and employees of an affiliate of such a person involved in assisting the person in carrying out the duties of the person in this State; (i)] Employees of a person required by paragraph (e) of subsection 1 of NRS 463.160 to be registered to operate as a cash access and wagering instrument service provider; [(j)] (i) Employees whose duties are directly involved with the manufacture, repair, sale or distribution of gaming devices, associated equipment when the employer is required by NRS 463.650 to be licensed, cashless wagering systems or interactive gaming systems; [(k)] (j) Employees of operators of interactive gaming systems whose duties include the operational or supervisory control of the systems or the games that are part of the systems; – 3 – - 83rd Session (2025) [(l)] (k) Employees of operators of call centers who perform, or who supervise the performance of, the function of receiving and transmitting wagering instructions; [(m)] (l) Employees who have access to the Board’s system of records for the purpose of processing the registrations of gaming employees that a licensee is required to perform pursuant to the provisions of this chapter and any regulations adopted pursuant thereto; [(n)] (m) Information technology personnel who have operational or supervisory control over information technology systems associated with any of the matters related to gaming described in this subsection; [(o)] (n) Hosts or other persons empowered to extend credit or complimentary services related to gaming; [(p)] (o) Machine mechanics; [(q)] (p) Odds makers and line setters; [(r)] (q) Security personnel; [(s)] (r) Shift or pit bosses; [(t)] (s) Shills; [(u)] (t) Supervisors or managers whose duties include the supervision of employees described in this subsection; [(v)] (u) Employees of a person required by NRS 463.160 to be licensed to operate an information service; [(w)] (v) Club venue employees; and [(x)] (w) Other persons whose duties are similar to the classifications set forth in paragraphs (a) to [(w),] (v), inclusive, as the Commission may from time to time designate by regulation. 2. “Gaming employee” does not include employees whose duties do not involve gaming activities, persons engaged exclusively in preparing or serving food or beverages or persons involved primarily in the resort or hotel functions of a licensed gaming establishment. Sec. 1.1. NRS 463.0165 is hereby amended to read as follows: 463.0165 “License” means a gaming license [,] or a manufacturer’s or distributor’s license . [, a license issued to a disseminator of information concerning racing or a license issued to an operator of an off-track pari-mutuel system.] Sec. 1.2. NRS 463.0167 is hereby amended to read as follows: 463.0167 “License fees” means any money required by law to be paid to obtain or renew a gaming license [,] or manufacturer’s or distributor’s license . [or license issued to an operator of an off-track pari-mutuel system. The term also includes the fees paid by a disseminator of information concerning racing.] – 4 – - 83rd Session (2025) Sec. 1.3. NRS 463.0171 is hereby amended to read as follows: 463.0171 “Licensee” means any person to whom a valid gaming license [,] or a manufacturer’s or distributor’s license [, license for the operation of an off-track pari-mutuel system or license for dissemination of information concerning racing] has been issued. Sec. 1.4. 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 state gaming licenses on the first day of each calendar quarter thereafter. 3. Application for renewal must be filed with the Commission, and all state license fees and taxes required by law, including, without limitation, NRS 368A.200, 463.370, 463.373 to 463.3855, inclusive, 463.660 [, 464.015] and 464.040, must be paid to the Board on or before the dates respectively provided by law for each fee or tax. 4. Application for renewal of licenses for slot machines only must be made by the operators of the locations where such machines are situated. 5. Any person failing to pay any state license fees or taxes due at the times respectively provided shall pay in addition to such license fees or taxes a penalty of not less than $50 or 25 percent of the amount due, whichever is the greater, but not more than $1,000 if the fees or taxes are less than 10 days late and in no case in excess of $5,000. The penalty must be collected as are other charges, license fees and penalties under this chapter. 6. Any person who operates, carries on or exposes for play any gambling game, gaming device or slot machine or who manufactures, sells or distributes any gaming device, equipment, material or machine used in gaming after the person’s license becomes subject to renewal, and thereafter fails to apply for renewal as provided in this section, is guilty of a misdemeanor and, in addition to the penalties provided by law, is liable to the State of Nevada for all license fees, taxes and penalties which would have been due upon application for renewal. 7. If any licensee or other person fails to renew his or her license as provided in this section, the Commission may order the – 5 – - 83rd Session (2025) immediate closure of all his or her gaming activity until the license is renewed by the payment of the necessary fees, taxes, interest and any penalties. Except for a license for which fees are based on the gross revenue of the licensee, failure to renew a license within 30 days after the date required by this chapter shall be deemed a surrender of the license. 8. The voluntary surrender of a license by a licensee does not become effective until accepted in the manner provided in the regulations of the Commission. The surrender of a license does not relieve the former licensee of any penalties, fines, fees, taxes or interest due. Sec. 1.5. NRS 463.386 is hereby amended to read as follows: 463.386 1. If the Commission approves the issuance of a license for gaming operations at the same location that is currently licensed, or locations that are currently licensed if the license is for the operation of a slot machine route, the Chair of the Board, in consultation with the Chair of the Commission may administratively determine that, for the purposes of NRS 463.370, 463.373 to 463.3855, inclusive, [463.450,] 463.660, 463.677, 463.760 [,] and 463.765 , [and 464.015,] the gaming license shall be deemed transferred, the previously licensed operation shall be deemed a continuing operation and credit must be granted for prepaid license fees, if the Chair of the Board makes a written finding that such determination is consistent with the public policy of this State pursuant to NRS 463.0129. 2. The Chair of the Board may refer a request for administrative determination pursuant to this section to the Board and the Commission for consideration, or may deny the request for any reasonable cause. A denial may be submitted for review by the Board and the Commission in the manner set forth by the regulations adopted by the Commission which pertain to the review of administrative approval decisions. 3. Except as otherwise provided in this section, no credit or refund of fees or taxes may be made because a gaming establishment ceases operation. 4. The Commission may, with the advice and assistance of the Board, adopt regulations consistent with the policy, objects and purposes of this chapter as it may deem necessary to carry out the provisions of this section. Sec. 1.6. NRS 463.400 is hereby amended to read as follows: 463.400 Any person who willfully fails to report, pay or truthfully account for and pay over the license fees imposed by NRS 463.370, 463.373 to 463.3855, inclusive, 463.390 [, 463.450] and – 6 – - 83rd Session (2025) 463.760 to 463.775, inclusive, or willfully attempts in any manner to evade or defeat any such tax or payment thereof, or any licensee who puts additional games into play without authority of the Commission to do so or any licensee who fails to remit any license fee provided for by this chapter when due is in addition to the amount due liable for a penalty of the amount of the license fee evaded or not paid, collected or paid over. The penalty must be assessed and collected in the same manner as are other charges, license fees and penalties under this chapter. Sec. 1.7. NRS 463.426 is hereby amended to read as follows: 463.426 1. The Board may [: 1. Authorize] authorize a [disseminator] track or an authorized agent or representative of a track to enter into an agreement with [a track to disseminate to] users to provide a live broadcast [which is received] from the track. Any such agreement must require that all users pay the same rate or fee for the right to receive the live broadcast. This section does not apply to a live broadcast that is furnished to users in connection with an agreement that allows users to participate in off-track pari-mutuel wagering at the track pursuant to chapter 464 of NRS. 2. [Establish fees to be paid by a disseminator of a live broadcast in an amount which is equal to the cost of carrying out the provisions of NRS 463.421 to 463.427, inclusive.] As used in this section: (a) “Live broadcast” means an audio and video transmission of a race, or series of races, as it occurs at a track and which is furnished by a track to a user for a fee. (b) “Track” means a facility licensed to operate horse or other racing where pari-mutuel [Text truncated for display. Full text available on LegiScan.]