Section 10.58 requiresof thethis Nevadabill Gamingcreates Control Board to appoint members to the CommitteeNevada andEsports requiresCommission, thewithin Committee to make recommendations to the BoardDepartment regardingof anyBusiness guidelines and parametersIndustry, that are necessary to safeguardregulate theEsports. integrity of Esports when wagers are placed at such competitions.

SectionSections 10.53-7 alsoof authorizesthis thebill Boarddefine tocertain adoptterms regulationsrelating asto arethe necessaryregulation toof carryEsports, outincluding the recommendationsterm “Esports” as a contest of themultiple Committee.players using video games.

EXPLANATIONSections –9 Matterand in10 boldedof italicsthis isbill new;prescribe the membership and terms of office of the members of the Commission.

matterSection between10.5 bracketsof [omittedthis material]bill isrequires materialthe Commission to beestablish omitted.a technical advisory committee to provide recommendations relating to the adoption of regulations pursuant to section 15 of this bill and any other matters of importance to the Commission.

WSection HEREAS11 ,of Nevadathis isbill knownrequires as the entertainmentGovernor capitalto ofappoint the worldExecutive andDirector isof a pioneer in providing new and exciting entertainment opportunities to the public;Commission.

andSection W12 HEREASof ,this Esportsbill isauthorizes athe rapidlyExecutive emergingDirector businessto apply for any grants and aaccept newany formgifts, ofgrants entertainmentor anddonations competition;for the support of the Commission.

andSections Wto HEREASthe ,Commission Thebefore growingstaging interestor inengaging Esports for both entertainment and competition creates an opportunity for Nevada to leverage its expertise in gamingany andEsports other. forms of entertainment and provide an ideal forum to grow this new industry;

and[with Wa HEREASpurse ,that Nevadaexceedsrmation has$1,000.] aSection desire15 to[of partner with this emergingbill] industryauthorizes withthe focusCommission onto ensuringadopt theregulations integritygoverning ofEsports. Esports competitions;

andSection W16 HEREASof ,this Therebill ismakes a naturalviolation fitof between Nevada and Esports that can promote both the growthrequirements ofrelating theto Esports industrya andmisdemean tourismor. in Nevada;

now,Senate therefore,Amendment -No. 81st Session (2021) – 2 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Sections353 1-10.to Senate Bill No.

(Deleted165 byPage amendment.)4 Sec.W HEREAS, Nevada is known as the entertainment capital of the world and is a pioneer in providing new and exciting entertainment opportunities to the public;

10.5.and W HEREAS, Esports is a rapidly emerging business and a new form of entertainment and competition;

Chapterand 463W ofHEREAS, NRSThe isgrowing herebyinterest amendedin byEsports addingfor the1.toboth Thereentertainment isand herebycompetition createdcreates thean Esportsopportunity Technicalfor AdvisoryNevada Committee.to leverage its expertise in gaming and other forms of entertainment and provide an ideal forum to grow this new industry;

and W HEREAS, Nevada has a desire to partner with this emerging industry with focus on ensuring the integrity of Esports competitions;

and W HEREAS, There is a natural fit between Nevada and Esports that can promote both the growth of the Esports industry and tourism in Nevada;

now, therefore, THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1.

Title 41 of NRS is hereby amended by adding thereto a new chapter to consist of the provisions set forth as sections 2 to 16, inclusive, of this act.

Sec.

TheAs Boardused shallin appointthis memberschapter, tounless the Committeecontext consistingotherwise requires, the words and terms defined in sections 3 to 7, inclusive, of professionalsthis fromact have the Esportsmeanings industry,ascribed including,to withoutthem limitation:in those sections.

(a)Sec. Game publishers;

(b) Hosts;

(c) Participants;

and (d) Broadcasters.

The“Commission” Committeemeans shall provide recommendations to the BoardNevada onEsports anyCommission guidelinescreated andby parameterssection that8 are necessary to safeguard the integrity of Esportsthis whenact. wagers are placed at such competitions.

Sec.

In“Esports” carryingmeans outa itscontest duties, the Committee may not request or require the disclosure of anymultiple proprietaryplayers information,using intellectualvideo propertygames. or trade secret.

Sec.

Each“Host” membermeans ofany theperson Committeewho shallproduces serveor withoutstages compensation.Esports.

Sec.

The“Participant” Boardmeans mayany adoptperson regulationswho asengages arein necessaryEsports tofor carryremuneration. out the recommendations of the Committee.

Sec.

As[“Purse” usedmeans a financial guarantee or any other remuneration for which participants engage in thisEsports.] section:(Deleted by amendment.) Sec.

(a)8. “Esports” means a competition between individuals or teams using video games which is hosted at a physical location or online.

(b)1. “Host” means any person who:

(1)The ActsNevada asEsports anCommission, organizerconsisting forof Esports;[three] five members appointed by the Governor, is hereby created within the Department of Business and Industry.

and2. (2) Produces or stages Esports.

(c)[Two] “Participant”Three meansmembers anyof individualthe orCommission teamconstitute whoa engagesquorum infor Esportsthe forexercise remuneration.of the authority conferred upon the Commission, and a concurrence of at least [two] three of the members is necessary to render a choice or a decision by the Commission.

Secs.[ 3.

11-16.A member shall not at any time during his or her service as a member of the Commission promote or sponsor any Esports or have any financial interest in the promotion or sponsorship of Esports.] Sec.

(Deleted9. by amendment.) Sec.

1.

Each member of the Commission must be:

(a) A citizen of the United States;

and (b) A resident of this State.

2.

No member of the Legislature, no person holding any elective office in the State Government, nor any officer or official of any political party is eligible for appointment to the Commission.

[ 3.

One member of the Commission must have expertise in Esports.

4.

One member of the Commission must have expertise in information technology, specifically as it relates to hardware and software in Esports.

5.

One member of the Commission must have training or experience in law enforcement, specifically as it relates to cheating in Esports through cybercrime, hacking or fraud.] Senate Amendment No.

353 to Senate Bill No.

165 Page 5 Sec.

10.

1.

The term of office of each member of the Commission is 4 years, commencing on the last Monday in January.

2.

The Governor shall appoint the members of the Commission and designate one member to serve as Chair, who shall coordinate the activities of the Commission.

The designation of Chair lasts for 2 years, unless revoked by the Governor.

3.

Each member of the Commission shall serve without compensation.

Sec.

10.5.

1.

The Commission shall establish a technical advisory committee consisting of professionals from the Esports industry, including, without limitation:

(a) Publishers;

(b) Hosts;

(c) Participants;

(d) Broadcasters;

and (e) Judges.

2.

The technical advisory committee shall provide recommendations to the Commission on:

(a) The adoption of regulations pursuant to section 15 of this act;

and (b) Any other matters of importance to the Commission.

2.

Each member of the technical advisory committee shall serve without compensation.

Sec.

11.

1.

The Governor shall appoint an Executive Director, who must not be a member of the Commission.

2.

The Executive Director serves at the pleasure of the Governor.

3.

The Executive Director may, within the limits of available money, employ such additional personnel as may be required to carry out the duties of the Commission.

4.

Except as otherwise provided in section 12 of this act, all money received by the Executive Director or the Commission pursuant to the provisions of this chapter must be deposited with the State Treasurer for credit to the State General Fund.

Sec.

12.

1.

The Executive Director may apply for any available grants and accept any gifts, grants or donations for the support of the Commission and its activities pursuant to the provisions of this chapter.

2.

Any money received pursuant to this section must be deposited in the Special Account for the Support of the Nevada Esports Commission, which is hereby created in the State General Fund.

Interest and income earned on money in the Account must be credited to the Account.

Money in the Account may only be used for the support of the Commission and its activities pursuant to the provisions of this chapter.

Sec.

13.

A host shall not stage any Esports [with a purse that exceeds $1,000] unless the host has first:

1.

Registered with the Commission in the manner prescribed by the Commission;

2.

Supplied any information, including, without limitation, tournament rules, as required by the Commission;

and 3.

Paid any fee required by the Commission.

Sec.

14.

A participant shall not engage in any Esports [with a purse that exceeds $1,000] unless the participant has first:

1.

Registered with the Commission in the manner prescribed by the Commission;

2.

Supplied any information as required by the Commission;

Senate Amendment No.

353 to Senate Bill No.

165 Page 6 3.

Read and agreed to be bound by any applicable tournament rules submitted by the host to the Commission;

and 4.

Paid any fee required by the Commission.

Sec.

15.

1.

The Commission may adopt regulations necessary to carry out the provisions of this chapter.

2.

The regulations must:

(a) Ensure the integrity of Esports.

(b) Establish procedures for the enforcement of Commission rules and policies.

(c) Prescribe the powers and duties of hosts and participants.

(d) Provide for the registration and approval of hosts and participants.

(e) Establish qualifications for participants.

(f) Establish procedures for the testing of participants, including, without limitation, testing for banned or controlled substances.

(g) Require approval of venues that accommodate Esports.

Sec.

16.

Any person who violates any provision of this chapter or any regulations adopted pursuant thereto is guilty of a misdemeanor.

Sec.

This1. act becomes effective on July 1, 2021.

~~~~~This 21section -becomes 81steffective Sessionupon (2021)passage and approval.

2.

Sections 1 to 16, inclusive, of this act become effective:

(a) Upon passage and approval for the purpose of adopting any regulations and performing any other preparatory administrative tasks that are necessary to carry out the provisions of this act;

and (b) On [January] July 1, 2022, for all other purposes.