AB 7 — Revises provisions related to gaming. (BDR 41-279)

THE SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:D IN Section 1.

(b) The continued growth and success of gaming is dependent upon public confidence and trust that licensed gaming and the manufacture, sale and distribution of gaming devices and associated - *AB7_R1* – 4 – equipment are conducted honestly and competitively, that establishments which hold restricted and nonrestricted licenses where gaming is conducted and where gambling devices are operated do not unduly impact the quality of life enjoyed by residents of the surrounding neighborhoods, that the rights of the creditors of licensees are protected and that gaming is free from criminal and corruptive elements.

- 81st Session (2021) – 4 – (c) Public confidence and trust can only be maintained by strict regulation of all persons, locations, practices, associations and activities related to the operation of licensed gaming establishments [,] and the manufacture, sale or distribution of gaming devices and associatedsystems.]d equipment .

[and the operation of inter-casino linked systems.] (d) All establishments where gaming is conducted and where gaming devices are operated, and manufacturers, sellers and distributors of certain gaming devices and equipment [, and operators of inter-casino linked systems] must therefore be licensed, controlled and assisted to protect the public health, safety, morals, good order and general welfare of the inhabitants of the State, to foster the stability and success of gaming and to preserve the competitive economy and policies of free competition of the State of Nevada.

(a) Abrogate or abridge any common-law right of a gaming establishment to exclude any person from gaming activities or eject any person from the premises of the establishment for any reason;

463.0136 “Associated equipment” means any equipment or mechanical [, electromechanical] or electronic contrivance, component or machine used remotely or directly in connection with gaming, any game, race book or sports pool that would not otherwise be classified as a gaming device, including dice, playing - *AB7_R1* – 5 – cards, links which connect to progressive slot machines, inter- casino linked systems, equipment which affects the proper reporting of gross revenue, computerized systems of betting at a race book or sports pool, computerized systems for monitoring slot machines and devices for weighing or counting money.

- 81st Session (2021) – 5 – Sec.

“Game” or “gambling game” means any game played with cards, dice, equipment or any mechanical [, electromechanical] or electronic device or machine for money, property, checks, credit or any representative of value, including, without limiting the generality of the foregoing, faro, monte,monte,ding, roulette, keno, bingo, fan-tan, twenty-one, blackjack, seven-and-a- half, [big injun,] klondike, craps, poker, chuck-a-luck, [Chinese chuck-a-luck (dai shu)], wheel of fortune, chemin de fer, baccarat, pai gow, beat the banker, panguingui, slot machine, any banking or percentage game or any other game or device approved by the Commission, upon the recommendation of the Board, [but] pursuant to section 1 of this act.

463.0155 “Gaming device” means any object used remotely or directly in connection with gaming or any game which affects the result of a wager by determining win or loss and which does not otherwisewithout constitutelimitation:e associated equipment.

The term includes, without1. limitation:

1.

or - *AB7_R1* – 6 – (d) An assembled mechanical [or electromechanical] unit which cannot be demonstrated to have any use other than in a slot machine.

- 81st Session (2021) – 6 – 4.

A system for the accounting or management of any game in which the result of the wager is determined electronically by using any combination of hardware or software for computers.computers.ally by using 6.

6.

(b) “Mobile gaming” means the conduct of gambling games through communications devices operated solely in an establishment which holds a nonrestricted gaming license and which operates at least 100 slot machines and at least one other game by the use of communications technology that allows a person to transmit information to a computer to assist in the placing of a bet or wager and corresponding information related to the display of the game, gamethis outcomesparagraph, “communications technology” means any method of used and the components employed by an establishment to facilitate the transmission of information, including, without limitation, transmission and reception by systems based on wireless network, wireless fidelity, wire, cable, radio, microwave, light, optics or othercomputer similardata information.networks.

For the purposes of this paragraph, “communications technology” means any method used and the components employed by an establishment to facilitate the transmission of information, including, without limitation, transmission and reception by systems based on wireless network, wireless fidelity, wire, cable, radio, microwave, light, optics or computer data networks.

- *AB7_R1*81st Session (2021) – 7 – (a) Accounting or internal auditing personnel who are directly involved in any recordkeeping or the examination of recordsrecordsrectly associated with revenue from gaming;

(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 463.650gaming tosystems;icensed, be licensed, cashless wagering systems or interactive gaming(j) systems;Employees of operators of slot routes who have keys for slot machines or who accept and transport revenue from the slot drop;

(j) Employees of operators of slot routes who have keys for slot machines or who accept and transport revenue from the slot drop;

(n) Floorpersons;

- 81st Session (2021) – 8 – (w) Supervisors or managers;

- *AB7_R1* – 8 – (y) Employees of a person required by NRS 463.160 to be licensed to operate an information service;

(z) Employees of a licensee who have local access and provide management, support, security or disaster recovery services for any hardware or software that is regulated pursuant to the provisions of this chapter and any regulations adopted pursuant thereto;

A license for, or the operation of, an inter-casino linked system.]sysSec. Sec.

(a) Required by the Board or Commission to be furnished to it under chapters 462 to 466, inclusive, of NRS or any regulations adopted- pursuant81st theretoSession or(2021) which– may9 be– otherwise obtained relative to the finances, earnings or revenue of any applicant or licensee;

- *AB7_R1* – 9 – (b) Pertaining to an applicant’s or natural person’s criminal record, antecedents and background which have been furnished to or obtained by the Board or Commission from any source;

(1) The manufacturing of gaming devices [or the operation of an inter-casino linked system;] ;

[or the operation of an inter-casino linked system;] and (2) Any other technology regulated by the Board;

(e) Obtained by the Board from a public accommodation facility pur(f) Prepared or obtained by an agent or employee of the Board or Commission pursuant to NRSan 447.345;audit, investigation, determination or hearing,  are confidential and may be revealed in whole or in part only in the course of the necessary administration of this chapter or upon the lawful order of a court of competent jurisdiction.

or (f) Prepared or obtained by an agent or employee of the Board or Commission pursuant to an audit, investigation, determination or hearing,  are confidential and may be revealed in whole or in part only in the course of the necessary administration of this chapter or upon the lawful order of a court of competent jurisdiction.

Notwithstanding any other provision of state law, any and all information and data prepared or obtained by an agent or employee of the Board or Commission relating to an application for a license, a finding of suitability or any approval that is required pursuant to the provisions of chapters 462 to 466, inclusive, of NRS or anyanyant to regulations adopted pursuant thereto, are confidential and absolutely privileged and may be revealed in whole or in part only in the course of the necessary administration of such provisions and with specific authorization and waiver of the privilege by the Board or Commission.

6.- 81st Session (2021) – 10 – applicant or licensee provides or communicates any information and data to an agent or employee of the Board or Commission in connection with its regulatory, investigative or enforcement authority:

Notwithstanding(a) anyAll othersuch provisioninformation ofand statedata law,are ifconfidential anyand applicantprivileged orand licenseethe providesconfidentiality orand communicatesprivilege anyare not waived if the information and data toare shared or have been shared with an authorized agent orof employeeany agency of the BoardUnited States Government, any state or Commissionany political subdivision of a state or the government of any foreign country in connection with its regulatory, investigative or enforcement authority:authority, regardless of whether such information and data are shared or have been shared either before or after being provided or communicated to an agent or employee of the Board or Commission;

- *AB7_R1* – 10 – (a) All such information and data(b) areThe confidentialapplicant andor privilegedlicensee andhas thea confidentiality and privilege areto notrefuse waivedto ifdisclose, the information and datato areprevent shared or have been shared with an authorized agent of any agencyother ofperson theor Unitedgovernmental Statesagent, Government,data.yee any state or anyagency politicalfrom subdivisiondisclosing, of a state or the governmentprivileged of any foreign country in connection with its regulatory, investigative or enforcement authority, regardless of whether such information and data7. are shared or have been shared either before or after being provided or communicated to an agent or employee of the Board or Commission;

and (b) The applicant or licensee has a privilege to refuse to disclose, and to prevent any other person or governmental agent, employee or agency from disclosing, the privileged information and data.

7.

All files, records, reports and other information pertaining to gaming matters in the possession of the Nevada Tax Commission must be made available to the Board and the Nevada GamingGamingmission Commission as is necessary to the administration of this chapter.

For the purposes of this section, “information and data” means all information and data in any form, including, without limitation, any oral, written, audio, visual, digital or electronic form, and the term includes, without limitation, any account, book, correspondence, file, message, paper, record, report or other type of document, including, without limitation, any document containing self-evaluative assessments, self-critical analysis or self-appraisals - 81st Session (2021) – 11 – of an applicant’s or licensee’s compliance with statutory or regulatory requirements.

The Commission shall adopt regulations governing the approval and operation of inter-casino linked systems and the [licensing] approval of the operators of such systems.systems.stems 2.

- *AB7_R1* – 11 – 2.

(a) To deal, operate, carry on, conduct, maintain or expose for play in the State of Nevada any gambling game, gaming device, [inter-casino linked system,] slot machine, race book or sports pool;

- 81st Session (2021) – 12 – 2.

or (b)casino Anlinked operatorsystem consisting of a slot machinemachines routeonly.g an inter- 3.] Except as otherwise provided in subsection [4,] 3, it is operatingunlawful anfor inter-any casinoperson linkedknowingly systemto consistingpermit ofany gambling game, slot machinesmachine, only.gaming device, [inter-casino linked system,] race book or sports pool to be conducted, operated, dealt or carried on in any house or building or other premises owned by the person, in whole or in part, by a person who is not licensed pursuant to this chapter, or that person’s employee.

3.] Except as otherwise provided in subsection [4,] 3, it is unlawful for any person knowingly to permit any gambling game, - *AB7_R1* – 12 – slot machine, gaming device, [inter-casino linked system,] race book or sports pool to be conducted, operated, dealt or carried on in any house or building or other premises owned by the person, in whole or in part, by a person who is not licensed pursuant to this chapter, or that person’s employee.

or (e) Allowing patrons to withdraw cash from an account for wagering or to be issued a ticket, receipt, representation of value or otherthat creditcan representingbe aredeemed withdrawalfor cash,thdrawal from an account for wagering that can be redeemed for cash,  whether by a transaction in person at an establishment or through mechanical means, such as a kiosk or similar device, regardless of whether that device would otherwise be considered associated equipment.

Any person who the Commission determines is qualified to receive a license, to be found suitable or to receive any approval required under the provisions of this chapter, or to be found suitable regarding the operation of a charitable lottery under the provisions of chapter 462 of NRS, having due consideration for the proper protection of the health, safety, morals, good order and general- welfare81st ofSession the(2021) inhabitants– of13 the– State of Nevada and the declared policy of this State, may be issued a state gaming license, be found suitable or receive any approval required by this chapter, as appropriate.

- *AB7_R1* – 13 – (b) A person whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this State or to the effective regulation and control of gaming or charitable lotteries, or create or enhance the dangers of unsuitable, unfair or illegal practices, methods and activities in the conduct of gaming or charitable lotteries or in the carrying on of the business and financial arrangements incidental thereto;

and (c) In all other respects qualified to be licensed or found suitable consistently with the declared policy of the State.State.ed or found suitable 3.

3.

An application to receive a license or be found suitable constitutes a request for a determination of the applicant’s general character, integrity, and ability to participate or engage in, or be associated with gaming or the operation of a charitable lottery, as appropriate.

- 81st Session (2021) – 14 – (b) Any other corporation which has complied with the provisions of NRS 463.490 to 463.530, inclusive;

and (d) A limited-liability company which has complied with the provisions of NRS 463.5731 to 463.5737, inclusive.inclusive.ied with the 6.

6.No limited partnership, except one whose sole limited partner is a publicly traded corporation which has registered with the Commission, or a limited-liability company, or business trust or organization or other association of a quasi-corporate character is eligible to receive or hold any license under this chapter unless all persons having any direct or indirect interest therein of any nature whatever, whether financial, administrative, policymaking or supervisory, are individually qualified to be licensed under the provisions of this chapter.

No limited partnership, except one whose sole limited partner is a publicly traded corporation which has registered with the Commission, or a limited-liability company, or business trust or organization or other association of a quasi-corporate character is eligible to receive or hold any license under this chapter unless all persons having any direct or indirect interest therein of any nature - *AB7_R1* – 14 – whatever, whether financial, administrative, policymaking or supervisory, are individually qualified to be licensed under the provisions of this chapter.

Any person granted a license or found suitable by the Commission shall continue to meet the applicable standards and qualifications set forth in this section and any other qualifications establishedcontinue byto themeet Commissionsuch bystandards regulation.and qualifications constitutes grounds for disciplinary action.

The failure to continue to meet such standards and qualifications constitutes grounds for disciplinary action.

A person who has been issued a nonrestricted gaming license for an operation described in subsection 1 or 2 of NRS 463.0177 may establish a sports pool or race book on the premises of- the81st establishmentSession (2021) – 15 – Commission.blishment only after obtaining permission from the Commission.3.

3.

or - *AB7_R1* – 15 – (b) An establishment at which only a nonrestricted license has been granted for an operation described in subsection 3 [or 4] of NRS 463.0177.

A person who has been issued a license to operate a race book or sports pool shall not enter into an agreement for the sharing of revenue from the operation of the race book or sports pool withwithing another person in consideration for the offering, placing or maintaining of a kiosk or other similar device not physically located on the licensed premises of the race book or sports pool, except:

[Nothing in this section limits or prohibits an operator of an inter-casino linked system from placing and operating such a system on the premises of two or more gaming licensees and receiving, either directly or indirectly, any compensation or any percentage or share of the money or property played from the linked games in accordance with the provisions of this chapter and the regulations adopted by the Commission.

(a)- Allowing81st patronsSession to(2021) establish– 16 – the race book or sports pool;tablish an account for wagering with the(b) raceAccepting bookwagers orfrom sportspatrons; pool;

(b) Accepting wagers from patrons;

- *AB7_R1* – 16 – Sec.

Any person who operates or maintains in this State any gaming device of a specific model [,] or any gaming device which includes a significant modification [or any inter-casino linked system] which the Board or Commission has not approved for testing or for operation is subject to disciplinary action by the Board or Commission.

Conviction by a court of competent jurisdiction of a person for a violation of, an attempt to violate, or a conspiracy to violate any of the provisions of this chapter or of chapter 463B, 464464o or 465 of NRS may act as an immediate revocation of all licenses which have been issued to the violator, and, in addition, the court may, upon application of the district attorney of the county or of the Commission, order that no new or additional license under this chapter be issued to the violator, or be issued to any person for the room or premises in which the violation occurred, for 1 year after the date of the revocation.

- 81st Session (2021) – 17 – 2.

A person who willfully fails to report, pay or truthfully account for and pay over any license fee or tax imposed by the provisions of this chapter, or willfully attempts in any manner to evade or defeat any such license fee, tax or payment thereof is guilty of a category C felony and shall be punished as provided in NRS 193.130.

A licensee who puts additional games or slot machines into play or displays additional games or slot machines in a public area without first obtaining all required licenses and approval is subject - *AB7_R1* – 17 – only to the penalties provided in NRS 463.270 and 463.310 and in any applicable ordinance of the county, city or town.

Except as otherwise provided in NRS 463.373, the Commission shall charge and collect from each licensee a license fee based upon all the gross revenue of the licensee as follows:

Except for the fee based on the first full month of operation, the fee is an estimated payment of the license fee for the third- month81st Session (2021) – 18 – basis.month following the month whose gross revenue is used as its basis.3.

3.

4.which is operated on the premises of a licensee, regardless of whether any portion of the revenue is shared with any other person, must be attributed to the licensee for the purposes of this section and counted as part of the gross revenue of the licensee.

All revenue received from any game or gaming device which is operated on the premises of a licensee, regardless of - *AB7_R1* – 18 – whether any portion of the revenue is shared with any other person, must be attributed to the licensee for the purposes of this section and counted as part of the gross revenue of the licensee.

[The proportionate share of an operator of an inter- casino linked system must be based on all compensation and other consideration received by the operator of the inter-casino linked system, including, without limitation, amounts that accrue to the meter of the primary progressive jackpot of the inter-casino linked system and amounts that fund the reserves of such a jackpot, subject to all appropriate adjustments for deductions, credits, offsets and exclusions that the licensee is entitled to take or receive pursuant to the provisions of this chapter.] A licensee is not liable to any other person authorized to receive a share of the licensee’s revenue from any game [,] or gaming device [or inter-casino linked system] that is operated on the premises of the licensee for that person’s proportionate share of the license fees to be remitted or credited to the licensee by that person pursuant to this section.

5.- 81st Session (2021) – 19 – into any agreement or arrangement with a licensee that provides forer the operator of the inter-casino linked system to be liable to the licensee for less than its full proportionate share of the license fees paid by the licensee pursuant to this section, whether accomplished through a rebate, refund, charge-back or otherwise.

[An operator of an inter-casino linked system shall not enter into any agreement or arrangement with a licensee that provides for the operator of the inter-casino linked system to be liable to the licensee for less than its full proportionate share of the license fees paid by the licensee pursuant to this section, whether accomplished through a rebate, refund, charge-back or otherwise.

If the adjustment is less than zero, a credit must be applied to the estimatedest[7.] fee6. due with that report.

[7.] 6.

- *AB7_R1* – 19 – (a) Charge and collect the additional license fees determined to be due, with interest thereon until paid;

Failure to pay the fees provided for in this section shall be deemed a surrender of the license at the expiration of the period forestablished whichin thesubsection estimated2.ent payment of fees has been made, as established[9.] in8. subsection 2.

[9.] 8.

or - 81st Session (2021) – 20 – (b) Refund any overpayment to the licensee with interest computed pursuant to paragraph (b) of subsection [7,] 6,  based upon the gross revenue of the licensee during the last 3 months immediately preceding the cessation of operation, or portionspor[11.] 10.thoIf in any month, the amount of thosegross lastrevenue 3is months.less than zero, the licensee may offset the loss against gross revenue in succeeding months until the loss has been fully offset.

[11.] 10.

If in any month, the amount of gross revenue is less than zero, the licensee may offset the loss against gross revenue in succeeding months until the loss has been fully offset.

In calculating gross revenue from slot machines, keno and bingo, the actual cost to the licensee of any personal property - *AB7_R1* – 20 – distributed to a patron as the result of a specific legitimate wager may be deducted as a loss, but not travel expenses, food, refreshments, lodging or services.

4.provides a patron with additional play at bingo as the result of an initial wager may deduct as losses from winnings all money or tokens paid directly to that patron as a result of such additional play.

In calculating gross revenue from bingo, a licensee who provides a patron with additional play at bingo as the result of an initial wager may deduct as losses from winnings all money or tokens paid directly to that patron as a result of such additional play.

The deductions may be taken only by those participating licensed gaming establishments that held an active- gaming81st licenseSession (2021) – 21 – payout was awarded.]e at any time during the month in which the payout was awarded.] Sec.

Except as provided in NRS 463.386, no proration of the quarterlyreason.ly amount prescribed in subsection 2 may be allowed for any reason.4.

4.

Any other person [, including, without limitation, an operator of an inter-casino linked system,] who is authorized to receive a share of the revenue from any slot machine that is operated - *AB7_R1* – 21 – on the premises of a licensee is liable to the licensee for that person’s proportionate share of the license fees paid by the licensee pursuant to this section and shall remit or credit the full proportionate share to the licensee on or before the dates set forth in subsection 2.

A licensee is not liable to any other person authorized to receive a share of the licensee’s revenue from any slot machine that is operated on the premises of a licensee for that person’s proportionate share of the license fees to be remitted or credited to the licensee by that person pursuant to this section.section.d or credited to Sec.

Sec.

(a)- Collect81st theSession tax(2021) annually– on22 or– before June 30, as a condition precedent to the issuance of a state gaming license to operate anyanyon slot machine for the ensuing fiscal year beginning July 1, from a licensee whose operation is continuing.

A licensee is not liable to any other person authorized to receive a share of the licensee’s revenue from any slot machine that is operated on the premises of a licensee for that person’sperson’sne proportionate share of the license fees to be remitted or credited to the licensee by that person pursuant to this section.

The Commission shall pay over the tax as collected to the State Treasurer to be deposited to the credit of the State Education Fund, and of the Capital Construction Fund for Higher Education and the Special Capital Construction Fund for Higher Education, which are hereby created in the State Treasury as special revenue funds, in the amounts and to be expended only for the purposes specified in this section, or for any other purpose authorized by the Legislature if sufficient money is available in the Capital - *AB7_R1* – 22 – Construction Fund for Higher Education and the Special Capital Construction Fund for Higher Education on July 31 of each year to pay the principal and interest due in that fiscal year on the bonds described in subsection 6.

5.tax paid over to him or her by the Commission as follows:l deposit the (a) The first $5,000,000 of the tax in the Capital Construction Fund for Higher Education;

During each fiscal year, the State Treasurer shall deposit the tax paid over to him or her by the Commission as follows:

(a) The first $5,000,000 of the tax in the Capital Construction Fund for Higher Education;

There is hereby appropriated from the balance in the Special Capital Construction Fund for Higher Education on July 31 of each year the amount necessary to pay the principal and interest due in that- fiscal81st yearSession on(2021) the– bonds23 issued– pursuant to section 5 of chapter 679, Statutes of Nevada 1979, as amended by chapter 585, StatutesStatutespter of Nevada 1981, at page 1251, the bonds authorized to be issued by section 2 of chapter 643, Statutes of Nevada 1987, at page 1503, the bonds authorized to be issued by section 2 of chapter 614, Statutes of Nevada 1989, at page 1377, the bonds authorized to be issued by section 2 of chapter 718, Statutes of Nevada 1991, at page 2382, the bonds authorized to be issued by section 2 of chapter 629, Statutes of Nevada 1997, at page 3106, and the bonds authorized to be issued by section 2 of chapter 514, Statutes of Nevada 2013, at page 3391.

If bonds described in this subsection are refunded and if the amount required to pay the principal of and interest on the refunding bonds in anyanyed fiscal year during the term of the bonds is less than the amount that would have been required in the same fiscal year to pay the principal of and the interest on the original bonds if they had not been refunded, there is appropriated to the Nevada System of Higher Education an amount sufficient to pay the principal of and interest on the original bonds, as if they had not been refunded.

The amount equal to the saving realized in that fiscal year from the refunding must be used by the Nevada System of Higher Education to defray, in whole or in part, the expenses of operation and - *AB7_R1* – 23 – maintenance of the facilities acquired in part with the proceeds of the original bonds.

After the requirements of subsection 6 have been met for each fiscal year, when specific projects are authorized by the Legislature, money in the Capital Construction Fund for Higher Education and the Special Capital Construction Fund for Higher Education must be transferred by the State Controller and the State Treasurer to the State Public Works Board for the construction of capital improvement projects for the Nevada System of Higher Education, including, but not limited to, capital improvement projects for the community colleges of the Nevada System of Higher Education.

As used in this subsection, “construction” includes, but is not limited to, planning, designing, acquiring and - 81st Session (2021) – 24 – developing a site, construction, reconstruction, furnishing, equipping, replacing, repairing, rehabilitating, expanding and remodeling.

Any money remaining in either Fund at the end of a fiscal year does not revert to the State General Fund but remains in thosetho8. Funds for authorized expenditure.

8.

Except as otherwise provided in NRS 463.386, the fee to be charged and collected under this section is the full annual fee, without regard to the date of application for or issuance of the license.

- *AB7_R1* – 24 – Sec.

(2)- Has81st theSession ability(2021) to– add25 or– subtract cash, cash equivalents or wagering credits to a game, gaming device or cashless wageringwageringts system;

and [(c)] (d) Establish fees for the application [, issuance] and renewalwhich ofmust thenot registrationexceed required$1,000 pursuantper toapplication, thisissuance sectionor .renewal, of such registration.] 3.

[, which must not exceed $1,000 per application, issuance or renewal of such registration.] 3.

- *AB7_R1* – 25 – 5.

[In addition to requiring a manufacturer or distributor of associated equipment to be registered as set forth in subsections 2 and 3, any person who directly or indirectly involves himself or herself in the sale, transfer or offering for use or play in Nevada of such associated equipment who is not otherwise required to be licensed as a manufacturer or distributor may be required by the Board to file an application for a finding of suitability to be a manufacturer or distributor of associated equipment.

[7.]- 6.81st Session (2021) – 26 – equipment who has complied with all applicable regulations adopted by the Commission before October 1, 2015, shall be deemed to be registered pursuant to this section.

Any person who manufactures or distributes associated equipment who has complied with all applicable regulations adopted by the Commission before October 1, 2015, shall be deemed to be registered pursuant to this section.

(c) That the interest of this State in the inspection of games, gaming devices, associated equipment, cashless wagering systems [, inter-casino linked systems] and interactive gaming systems must be balanced with the interest of this State in maintaining a competitive gaming industry in which games can be efficiently and expeditiously brought to the market.

- *AB7_R1* – 26 – 4.

The Board may inspect every game or gaming device which is offered5. for play within this State by a state gaming licensee.

5.The Board may inspect all associated equipment, everyensee.

The Board may inspect all associated equipment, every cashless wagering system [, every inter-casino linked system] and every interactive gaming system which is manufactured, sold or distributed for use in this State before the equipment or system is installed or used by a state gaming licensee and at any time while the state gaming licensee is using the equipment or system.

In addition to all other fees and charges imposed by this chapter, the Board may determine, charge and collect an inspection fee from each manufacturer, seller, distributor or independent - 81st Session (2021) – 27 – testing laboratory which must not exceed the actual cost of inspection and investigation.

(a) Provide for the registration of independent testing laboratories and of each person that owns, operates or has significant involvement with an independent testing laboratory, specify the form of the application required for such registration, set forth the qualifications required for such registration and establish the fees required for the application, the investigation of the applicant and the registration of the applicant.

(d) Allow an application for the registration of an independent testing laboratory to be granted upon the independent testing laboratory’s completion of an inspection performed in compliance with the uniform protocols and procedures established pursuant to paragraphBoard (c)may andestablish.tisfaction satisfaction of such other requirements that the Board(e) mayProvide establish.the standards and procedures for the revocation of the registration of an independent testing laboratory.

(e) Provide the standards and procedures for the revocation of the registration of an independent testing laboratory.

- *AB7_R1* – 27 – (g) Provide any additional provisions which the Commission deems necessary and appropriate to carry out the provisions of this section and which are consistent with the public policy of this State pursuant to NRS 463.0129.

The Commission shall retain jurisdiction over any person registered pursuant to this section and any regulation adopted thereto, in all matters relating to a game, gaming device, associated equipment, cashless wagering system [, inter-casino linked system] or- interactive81st gamingSession system,(2021) or– any28 component– thereof or modification thereto, even if the person ceases to be registered.

If a person fails to submit an application for a finding of suitability within 30 days after a demand by the Commission pursuant to this section, the Commission may make a finding of unsuitability.

21.5.

NRS 368A.200 is hereby amended to read as follows:

368A.200 1.

Except as otherwise provided in this section, this State where live entertainment is provided and on the charge for live entertainment provided by an escort at one or more locations in this State.

The rate of the tax is:

(a) Except as otherwise provided in paragraph (b), for admission to a facility in this State where live entertainment is provided, 9 percent of the admission charge to the facility.

(b) For live entertainment provided by an escort who is escorting one or more persons at a location or locations in this State, - 81st Session (2021) – 29 – consideration paid for the live entertainment provided by the escort.

2.

Amounts paid for:

(a) Admission charges collected and retained by a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C.

§ 501(c), or by a nonprofit corporation organized or existing under the provisions of chapter 82 of NRS, are not taxable pursuant to this section, only if the number of tickets to the live entertainment which are offered for sale or other distribution to patrons, either directly or indirectly through a partner, subsidiary, client, affiliate or other collaborator, is less than 7,500.

(b) Gratuities directly or indirectly remitted to persons employed at a facility where live entertainment is provided are not taxable pursuant to this section.

(c) Fees imposed, collected and retained by an independent financial institution in connection with the use of credit cards or entertainment is provided are not taxable pursuant to this section.

As used in this paragraph, “independent financial institution” means a financial institution that is not the taxpayer or an owner or operator of the facility where the live entertainment is provided or an affiliate of any of those persons.

3.

The tax imposed by this section must be added to and collected from the purchaser at the time of purchase, whether or not the admission for live entertainment is purchased for resale.

[Each ticket for admission to a facility where live entertainment is provided must show on its face the admission charge or the seller of the admission shall prominently display a notice disclosing the admission charge at the box office or other place where the charge is made.] 4.

The tax imposed by subsection 1 does not apply to:

(a) Live entertainment that this State is prohibited from taxing Nevada Constitution.on, laws or treaties of the United States or the (b) Live entertainment that is governed by the Nevada Interscholastic Activities Association pursuant to chapter 385B of NRS or is provided or sponsored by an elementary school, junior high school, middle school or high school, if only pupils or faculty provide the live entertainment.

(c) An athletic contest, event, tournament or exhibition provided by an institution of the Nevada System of Higher Education, if - 81st Session (2021) – 30 – tournament or exhibition.tution are contestants in the contest, event, (d) Live entertainment that is provided by or entirely for the benefit of a nonprofit religious, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to U.S.C.

§ 501(c), or a nonprofit corporation organized or existing under the provisions of chapter 82 of NRS, only if the number of tickets to the live entertainment which are offered for sale or other distribution to patrons, either directly or indirectly through a partner, subsidiary, client, affiliate or other collaborator, is less than 7,500.

(e) Any boxing contest or exhibition governed by the provisions of chapter 467 of NRS.

(f) Live entertainment that is not provided at a licensed gaming establishment if the facility in which the live entertainment is provided has a maximum occupancy of less than 200 persons.

(g) Live entertainment that is provided at a licensed gaming establishment that is licensed for less than 51 slot machines, less within those respective limits, if the facility in which the live entertainment is provided has a maximum occupancy of less than persons.

(h) Live entertainment that is provided at a trade show.

(i) Music performed by musicians who move constantly through the audience if no other form of live entertainment is afforded to the patrons.

(j) Live entertainment that is provided at a licensed gaming establishment at private meetings or dinners attended by members of a particular organization or by a casual assemblage if the purpose of the event is not primarily for entertainment.

(k) Live entertainment that is provided in the common area of a shopping mall, unless the entertainment is provided in a facility located within the mall.

(l) Food and product demonstrations provided at a shopping housewares, hardware or other supplies for the home.ocery products, (m) Live entertainment that is incidental to an amusement ride, a motion simulator or a similar digital, electronic, mechanical or electromechanical attraction.

For the purposes of this paragraph, live entertainment shall be deemed to be incidental to an amusement ride, a motion simulator or a similar digital, electronic, mechanical or electromechanical attraction if the live entertainment is:

(1) Not the predominant element of the attraction;

and - 81st Session (2021) – 31 – (2) Not the primary purpose for which the public rides, attends or otherwise participates in the attraction.

(n) A race scheduled at a race track in this State and sanctioned by the National Association for Stock Car Auto Racing, if two or more such races are held at that race track during the same calendar year.

(o) An athletic contest, event or exhibition conducted by a professional team based in this State if the professional team based in this State is a participant in the contest, event or exhibition.

5.

As used in this section:

(a) “Affiliate” has the meaning ascribed to it in NRS 463.0133.

priority:aximum occupancy” means, in the following order of (1) The maximum occupancy of the facility in which live entertainment is provided, as determined by the State Fire Marshal or the local governmental agency that has the authority to determine the maximum occupancy of the facility;

(2) If such a maximum occupancy has not been determined, the maximum occupancy of the facility designated in any permit required to be obtained in order to provide the live entertainment;

or (3) If such a permit does not designate the maximum occupancy of the facility, the actual seating capacity of the facility in which the live entertainment is provided.

(c) “Operator” includes, without limitation, a person who operates a facility where live entertainment is provided or who presents, produces or otherwise provides live entertainment.

Sec.

-~~~~~ *AB7_R1*21 –- 2881st –Session TEXT(2021) OF REPEALED SECTIONS 463.01805 “Operator of an inter-casino linked system” defined.

person who, under any agreement whereby consideration is paid or payable for the right to place an inter-casino linked system, engages in the business of placing and operating an inter-casino linked system upon the premises of two or more licensed gaming establishments, and who is authorized to share in the revenue from the linked games without having been individually licensed to conduct gaming at the establishment.

463.306 Availability of inter-casino linked system to certain non463.306 1.

liceIf an operator of an inter-casino linked system makes the inter-casino linked system available to a nonrestricted licensee, other than during a trial period, the operator shall also make the inter-casino linked system available to any other eligible nonrestricted licensee subject to the provisions of this chapter and reasonable production and delivery schedules.

For purposes of this section, a nonrestricted licensee shall be deemed to be eligible if the licensee is a Group I licensee or a Group II licensee, as determined pursuant to the regulations of the Commission and otherwise meets the requirements of the Commission regarding locations for games that are part of an inter-casino linked system.

2.

The provisions of subsection 1 do not prevent the imposition by an operator of an inter-casino linked system of different terms and conditions, including prices, based on:

(a) The quantity or volume of gaming devices connected to an affiliated licensees by the operator;

or or leased to a licensee or to (b) Credit considerations.

463.800 Requirements;

records of business entity;

prohibited acts;

regulations.

463.800 1.

A race book or sports pool may accept wagers from a business entity if the business entity has established a wagering account with the race book or sports pool and provided the information required pursuant to subsection 2.

The business entity shall:

(a) Be deemed to be a patron for the purposes of this chapter and chapter 465 of NRS.

(b) Place wagers in compliance with all applicable state and federal laws.

- *AB7_R1* – 29 – 2.

A business entity that wishes to establish a wagering account with a race book or sports pool shall provide to the race book or sports pool:

(a) The name, residential address, copy of a valid photo identification which evidences that the person is at least 21 years of age, and social security number or individual taxpayer identification number, of each of the business entity’s equity owners, holders of indebtedness, directors, officers, managers and partners, anyone entitled to payments based on the profits or revenues and any designated individuals;

(b) The business entity’s formation documents and all filings wit(c) Any other documentation or information the Commission may require;

and (d) Any other documentation or information the race book or sports pool may require.

3.

A business entity shall update the information provided pursuant to subsection 2 within 5 business days after any change in the information or status.

4.

A business entity shall:

(a) In addition to the books and records required by law to be kept in this State, keep in this State originals or copies of the records received from the race book or sports pool for all wagers placed;

(b) Maintain an account in this State with a bank or other located in this State, from which it shall transfer and receive all money used in wagering with an operator of a race book or sports pool;

and (c) Make any records pursuant to this subsection available for review by the Board or its agents.

5.

Notwithstanding the provisions of NRS 463.350, a race book or sports pool may accept wagers from a designated individual of a business entity which has established a wagering account with the race book or sports pool.

6.

A business entity and any designated individual that places a wager with a race book or sports pool pursuant to this section must not be considered to be engaged in the unlawful accepting or fac7.itaIt is unlawful for any person either solely or in conjunction with others:

(a) To knowingly pay or distribute profits or any compensation to a designated individual or equity owner who is not disclosed to the race book or sports pool pursuant to subsection 2;

(b) To knowingly pay or distribute a percentage of revenue derived from the wagering activity of a business entity to a person - *AB7_R1* – 30 – who is not disclosed to the race book or sports pool pursuant to subsection 2;

(c) To wager with money received from a person who is not disclosed to the race book or sports pool pursuant to subsection 2;

(d) To place a wager on behalf of a person who is not disclosed to (e) To knowingly submit any false information as required by this section.

8.

The Commission may, with the advice and assistance of the Board, adopt regulations as it deems necessary to carry out the provisions of this section.

9.

As used in this section:

(a) “Business entity” means an entity organized and existing under the laws of this State.

director, partner or manager of a business entity in the business entity’s filings with the Secretary of State pursuant to title 7 of NRS, and any other natural person authorized by the business entity in writing to place wagers.

H - *AB7_R1*