SB362 - Revises provisions relating to gaming. (BDR 41-1026)

REQUIRES TWO-THIRDS MAJORITY VOTE (§ 3) S.B. 362 - *SB362* SENATE BILL NO. 362–SENATOR BUCK MARCH 17, 2025 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to gaming. (BDR 41-1026) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to gaming; requiring the Nevada Gaming Commission to adopt certain regulations relating to gaming; retaining the jurisdiction of the Nevada Gaming Control Board and the Commission under certain circumstances; revising provisions relating to certain institutional investors; revising certain provisions governing voting by the Commission; authorizing the Commission to reduce, defer or forgive certain fees under certain circumstances; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law establishes various provisions governing the licensing and control 1 of gaming in this State. (Chapter 463 of NRS) Existing regulations require each 2 person who is licensed to conduct restricted or nonrestricted gaming and who 3 engages in the issuance of credit, check cashing or the direct mail marketing of 4 gaming opportunities to implement a program related to allowing patrons to self- 5 limit access to such credit, check cashing or direct mail marketing. (Nev. Gaming 6 Comm’n Regs. § 5.170) Section 2 of this bill codifies in statute the requirement for 7 the Commission to adopt regulations to implement such a program and expands the 8 program to include communications through direct marketing by mail, telephone, 9 text message or electronic mail. 10 Existing law provides for the issuance of restricted and nonrestricted licenses to 11 conduct gaming and defines a “nonrestricted license” as, among other things, a 12 state gaming license for, or an operation consisting of, 16 or more slot machines. 13 (NRS 463.0177) Section 3 of this bill: (1) requires the Commission to adopt 14 regulations and establish the necessary fees for a license to operate a tavern gaming 15 establishment; (2) sets forth the requirements for a tavern gaming establishment; 16 and (3) authorizes a tavern gaming establishment to, among other things, operate 25 17 or fewer gaming devices. Section 8 of this bill makes a conforming change to 18 – 2 – - *SB362* exclude a license for the operation of a tavern gaming establishment from the 19 definition of “nonrestricted license” for purposes of the provisions governing the 20 licensing and control of gaming. 21 Existing law requires the Nevada Gaming Control Board to make an 22 investigation and initiate a hearing by filing a complaint with the Commission if the 23 Board is satisfied that a person or entity which is licensed, registered, found 24 suitable or found preliminarily suitable or was previously approved for an activity 25 for which Commission approval was required or permitted should have its license, 26 registration, finding of suitability or preliminary finding of suitability limited, 27 conditioned, suspended, revoked or fined. (NRS 463.310) Section 4 of this bill: (1) 28 retains the jurisdiction of the Board and the Commission after a person or entity 29 who is licensed, registered, found suitable or preliminarily found suitable is no 30 longer engaged in the activity or position for which Commission approval was 31 required; and (2) provides that the surrender or attempted surrender of a license, 32 registration, finding of suitability or preliminary finding of suitability is not 33 effective until accepted by the Board. Existing law also provides that a voluntary 34 surrender of a license by a licensee does not become effective until accepted in the 35 manner prescribed by regulations adopted by the Commission. (NRS 463.270) 36 Section 10 of this bill provides instead that such a voluntary surrender does not 37 become effective until accepted in the manner provided by the Board. 38 Existing law defines “interactive gaming” and authorizes certain gaming 39 establishments to obtain a license to operate interactive gaming. (NRS 463.016425, 40 463.750) Section 5 of this bill requires the Commission, with the advice and 41 assistance of the Board, to adopt regulations governing interactive gaming that 42 allow for a sports pool, including the acceptance of wagers on sporting events and 43 other events from patrons located within and outside of this State. Section 7 of this 44 bill revises the definition of “interactive gaming” to include a sports pool, which by 45 definition means the business of accepting wagers on sporting events or other 46 events by any system or method of wagering. (NRS 463.0193) Section 14 of this 47 bill makes a conforming change to exclude interactive gaming from the criminal 48 penalties for accepting, receiving or allowing another to accept or receive a wager 49 from a person physically present in this State. (NRS 465.092, 465.093) 50 Existing law requires certain persons to apply for and obtain a finding of 51 suitability, license or registration from the Nevada Gaming Commission under 52 certain circumstances. (NRS 463.530, 463.585, 463.595, 463.643) Existing 53 regulations define “institutional investor” for certain purposes related to gaming. 54 (Nev. Gaming Comm’n Regs. § 16.010) Section 6 of this bill codifies the definition 55 of institutional investor for certain purposes and prohibits such an investor from 56 becoming eligible to receive or hold a waiver granted by the Commission under 57 certain circumstances. 58 Existing law provides that after a final order of the Board recommending denial 59 of an application for a license, registration, finding of suitability or approval, the 60 Commission may: (1) deny the application; (2) reject the application; (3) remand 61 the matter to the Board for further investigation and reconsideration; or (4) by 62 unanimous vote of the members present, grant the application. (NRS 463.220) 63 Section 9 of this bill authorizes the Commission, after receiving a final order of the 64 Board recommending approval of such an application, to deny the application by 65 unanimous vote of the members present. 66 Under existing law, a state of emergency or a declaration of disaster may be 67 proclaimed by the Governor or by resolution of the Legislature if the Governor or 68 Legislature, as applicable, finds that: (1) an attack upon the United States has 69 occurred or is anticipated in the immediate future, or any natural, technological or 70 man-made emergency or disaster of major proportions has actually occurred within 71 this State; and (2) the protection of the safety and welfare of the inhabitants of this 72 State requires an invocation of certain additional governmental powers. 73 – 3 – - *SB362* (NRS 414.070) Sections 11-13 of this bill authorize the Commission, in response to 74 a state of emergency or declaration of disaster proclaimed by the Governor or by 75 resolution of the Legislature, to reduce, defer or forgive certain fees charged to a 76 licensee. 77 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 1 thereto the provisions set forth as sections 2 to 6, inclusive, of this 2 act. 3 Sec. 2. The Commission shall by regulation provide for the 4 establishment of a program that allows a patron of a licensee who 5 engages in the issuance of credit, check cashing or direct 6 marketing of gaming opportunities to self-limit access to the 7 issuance of credit, check cashing or direct marketing of gaming 8 opportunities. The program must include, without limitation: 9 1. The development of written materials for dissemination to 10 a patron explaining the program. 11 2. The development of written forms allowing a patron to 12 participate in the program. 13 3. Standards and procedures that allow a patron to be 14 prohibited from access to check cashing, the issuance of credit 15 and the participation in direct marketing of gaming opportunities. 16 4. Standards and procedures that allow a patron to be 17 removed from direct marketing that conveys a gaming opportunity 18 from a licensee, including, without limitation, communications 19 through: 20 (a) Mail; 21 (b) Telephone; 22 (c) Text message; or 23 (d) Electronic mail. 24  As used in this subsection, “gaming opportunity” means a free 25 play or rebate offer, a tournament entry offer or any other offer or 26 promotion that may directly or indirectly be used as a wager. 27 5. Procedures and forms with which a patron may notify a 28 designated officer of a licensee within 10 days after the receipt of 29 any direct marketing pursuant to subsection 4. 30 Sec. 3. 1. Notwithstanding any other provision of law, the 31 Commission shall adopt regulations and establish the necessary 32 fees for a license to operate a tavern gaming establishment. 33 2. A tavern gaming establishment must meet the following 34 requirements: 35 – 4 – - *SB362* (a) The primary business of the establishment must be the sale 1 of alcoholic beverages for on-premises consumption as authorized 2 pursuant to chapter 369 of NRS; 3 (b) The establishment must have a permanent physical bar 4 with individual seating for not less than nine patrons at all times; 5 (c) The establishment must occupy an area of at least 2,000 6 square feet which is open and available for use by patrons, with 7 seating capacity for not less than 20 persons not engaged in 8 gaming activities; and 9 (d) The establishment must operate a restaurant. As used in 10 this paragraph, “restaurant” means a business that sells and 11 prepares food for immediate consumption, which may involve 12 cooking from raw ingredients or reheating pre-cooked food, offers 13 a fixed menu and provides a designated area for patrons to 14 consume meals. The term does not require a full-sized kitchen. 15 3. A tavern gaming establishment licensed pursuant to this 16 section may offer the following gaming activities: 17 (a) The operation of 25 or fewer gaming devices; 18 (b) The operation of self-service wagering kiosks, which allow 19 a patron to create and manage wagering accounts and place bets 20 on authorized gaming activities; and 21 (c) The sale of lottery tickets, if authorized by this State. 22 Sec. 4. 1. The jurisdiction of the Board to investigate and 23 initiate a hearing before the Commission pursuant to NRS 24 463.310, and the jurisdiction of the Commission to conduct 25 proceedings and impose discipline in accordance with this section 26 and NRS 463.310 to 463.3145, inclusive, is fully retained and is 27 not divested in any circumstance where a person or entity licensed, 28 registered, found suitable or preliminarily found suitable by the 29 Commission pursuant to this chapter or chapter 462, 464 or 466 of 30 NRS is no longer engaged in the activity or in the position for 31 which Commission approval was required. 32 2. The surrender or attempted surrender of a license, 33 registration, finding of suitability or preliminary finding of 34 suitability is not effective until accepted by the Board. 35 Sec. 5. The Commission shall, with the advice and assistance 36 of the Board, adopt regulations governing interactive gaming that 37 allow for a sports pool, including the acceptance of wagers on 38 sporting events and other events from patrons located within and 39 outside of this State. 40 Sec. 6. 1. For the purposes of subsection 4 of NRS 463.643, 41 an institutional investor is not eligible to receive or hold a waiver 42 granted by the Commission if the institutional investor: 43 – 5 – - *SB362* (a) Will own, directly or indirectly, more than 25 percent of the 1 voting securities of the publicly traded corporation acquired other 2 than through a debt restructuring; and 3 (b) Holds the voting securities for investment purposes only. 4 2. An institutional investor that has been granted a waiver by 5 the Commission may own more than 25 percent but not more than 6 29 percent, at any given time, of any class of the voting securities 7 of the publicly traded corporation if such additional ownership 8 results from a stock repurchase program and the institutional 9 investor does not acquire additional voting securities of the 10 publicly traded corporation. 11 3. For the purposes of NRS 463.530, 463.585 and 463.595, an 12 institutional investor is not eligible to receive or hold a waiver 13 granted by the Commission if: 14 (a) It will own, directly or indirectly, more than 25 percent of 15 the voting or equity securities of the corporate licensee or a 16 holding company acquired other than through a debt 17 restructuring; and 18 (b) The voting or equity securities held do not, directly or 19 indirectly, allow the investor to vote for the election of members of 20 the board of directors or cause any action which the Commission 21 finds to be inconsistent with investment purposes. 22 4. As used in this section, “institutional investor” means: 23 (a) A bank, as defined in the Securities Exchange Act of 1934, 24 15 U.S.C. § 78c(a)(6); 25 (b) An insurance company, as defined in the Investment 26 Company Act of 1940, 15 U.S.C. § 80a-2(a)(17), as amended; 27 (c) An investment company registered under the Investment 28 Company Act of 1940, 15 U.S.C. § 80a-8, as amended; 29 (d) An investment advisor registered under the Investment 30 Advisers Act of 1940, 15 U.S.C. § 80b-3, as amended; 31 (e) Collective trust funds, as defined in the Investment 32 Company Act of 1940, 15 U.S.C. § 80a-3(e)(11), as amended; 33 (f) An employee benefit plan or pension fund that is subject to 34 the Employee Retirement Income Security Act of 1974, as 35 amended, other than an employee benefit plan or pension fund 36 sponsored by a publicly traded corporation registered with the 37 Commission; 38 (g) A state or federal government pension plan; 39 (h) A group comprised entirely of persons specified in 40 paragraphs (a) to (g), inclusive; or 41 (i) Such other persons as the Commission determines for 42 reasons consistent with the policies of this State pursuant to NRS 43 463.0129 and 463.489. 44 – 6 – - *SB362* Sec. 7. NRS 463.016425 is hereby amended to read as 1 follows: 2 463.016425 1. “Interactive gaming” m [Text truncated for display. Full text available on LegiScan.]