Existing law requires the Nevada Gaming Commission to charge and collect from each licensee a monthly license fee in an amount equal to a certain percentage of the gross revenue of the licensee.

(NRS 463.0161) SectionThis 1 of this bill excludes from the gross revenue on which the monthly license fee is imposed any portion of entry fees for the right to participate in contests and tournaments [that] conducted on the premises of a licensed gaming establishment with the participants physically present at those premisessedpremises when participating if the portion of those fees is designated[: as:

(1)] designated as :

(2) [designated as] a donationschedule andof remittedthe contest or tournament that is paid as a prize to certaina tax-exemptparticipant organizations;in a present or future contest or tournament;

(3)or (4) [added] an addition to aan payoffaccount schedule of the contest or tournament that is paid as a prize to apay participant guaranteed payouts of future contests or tournaments.

SectionThis 1bill also clarifies thataythat cash from an entry fee excluded from gross revenue:

and (2) must be included in the calculation of gross revenue for the month in whichSenate itAmendment isNo. paid out or distributed for a purpose other than the purpose for which an exclusion is authorized.

For509 theto purposesSenate ofBill theNo. regulation of gaming in this State, a nonrestricted any number of slot machines together with any other game, gaming device, racees;

(2)266 bookPage or4 sportsexclusion poolis atauthorized.distributed onefor establishment;a purpose other than the purpose for which an For the purposes of the regulation of gaming in this State, a nonrestricted licensee is a licensee who is licensed to operate:

(1) 16 or more slot machines;

(2) any number of slot machines together with any other game, gaming device, race book or sports pool at one establishment;

and (2) required to adopt regulations requiring audits of the financial statements of nonrestricted licensees whose annual gross revenue is $5,000,000 or more, as adjusted annually based on - 82nd Session (2023) – 2 – the Consumer Price Index (All Items) for the preceding year.

(NRS 463.125, 463.159)463.159)sed on Because sectionthis 1bill excludes from gross revenue certain portions of the entry fee for the right to participate in contests or tournaments, that revenue would be eExistingexcluded law prohibits the Nevada Gaming Commission from approving a nonrestricted license for an establishment in a county whose population is 700,000 or more (currently only Clark County) unless the establishmentpurposes is located in a gaming enterprise district, which is defined as “an area that has been approved by a county, city or town as suitable for operating an establishment that has been issued a nonrestricted license.” (NRS 463.0158, 463.308) If the location of athese proposedcalculations. establishment is within the Las Vegas Boulevard gaming corridor or the rural Clark County gaming zone, but not within an area already designated as a gaming enterprise district, the Commission is prohibited from approving a nonrestricted license for the proposed establishment unless the location of the proposed establishment is first designated a gaming enterprise district pursuant to the criteria set forth in NRS 463.3084.

(NRS 463.3082) However, if the location of the proposed establishment is not within the Las Vegas Boulevard gaming corridor or gaming enterprise district, the Commission is prohibited from approving ated as a nonrestricted license for the proposed establishment unless the location of the proposed establishment is first designated a gaming enterprise district pursuant to the criteria set forth in NRS 463.3086, which contains certain additional requirements that are not contained in NRS 463.3084, such as:

(1) the property line of the proposed establishment must be not less than 500 feet from the property line of a developed residential district and not less than 1,500 feet from the property line of a public school, private school or structure used primarily for religious services or worship;

and (2) a three-fourths vote of the governing body of the county, city or town is required for designation of the location as a gaming enterprise district.

(NRS 463.3086) Section 1.3 of this bill provides that a proposed establishment that meets certain criteria is not subject to certain requirements of existing law related to the designation of the location of the proposed establishment as aExisting law requires certain persons licensed to operate gaming establishments in this State who also conduct gaming operations outside this State to file certain documents with the Nevada Gaming Control Board as soon as the licensee begins participating in gaming outside this State.

Thereafter, the licensee is required to file annual and quarterly reports containing certain information concerning the gaming operations outside this State.

(NRS 463.710) Section 1.5 of this bill revises those filing requirements to:

(1) require a notice to be filed when participation in gaming outside this State begins and terminates;

(2) eliminate the requirement to file certain annual reports;

and (3) revise the content that is required to be included in the required quarterly reports.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

-(a) 82ndCash Session (2023) – 3 – (b) [Cash] Except as otherwise provided in paragraph (g) of subsection 2, cash received as entrywinnings; fees for the right to participate in contests and tournaments;

(b) [Cash] Except as otherwise provided in paragraph (g) of subsection 2, cash received as entry fees for the right to participate in contests and tournaments;

devices;oins(b) Coins of other countries which are received in gaming (c)devices; Any portion of the face value of any chip, token or other representative of value won by a licensee from a patron for which the licensee can demonstrate that it or its affiliate has not received cash;

(c) Any portion of the face value of any chip, token or other representative of value won by a licensee from a patron for which the licensee can demonstrate that it or its affiliate has not received cash;

or (g) Cash received as entry fees for the right to participate in a contest or tournament conducted on the premises of a licensed gaming establishment with the participants physically present at those premises when participating, if the cash is [:] designated:

(1) [Designated as] As employee compensation and paid as compensation to an employee of a licensee who is involved in the organization or operation of the contest or tournament, in addition to the regular compensation of the employee;

(2)Senate AsAmendment aNo. donation to a nonprofit, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C.

509 to Senate Bill No.

266 Page 5 (2) [Designated as] As a donation to a nonprofit, charitable, fraternal or other organization that qualifies as a tax-exempt organization pursuant to 26 U.S.C.

-(3) 82nd[Added] SessionAs (2023)an –addition 4to –a payoff schedule of the contest or tournament that is fixed, or increases automatically over time or as the contest or tournament is played, and that is paid as a prize to a patron participating in the present or a future contest or tournament;

or (4) [Added] As an addition to an account to fund guaranteed payouts of future contests or tournaments and the disbursement of funds from the account are used to fund guaranteed payouts of future contests or tournaments.

The amount of cash received as entry fees for the right to participate in a contest or tournament that is excluded from gross rev(a) May not be deducted from the amount of the entry fees included in gross revenue pursuant to subsection 1 if the amount is paid or distributed for any purpose other than a purpose set forth in paragraph (g) of subsection 2;2:

(a) May not be deducted from the amount of the entry fees included in gross revenue pursuant to subsection 1 if the amount is paid or distributed for any purpose other than a purpose set forth in paragraph (g) of subsection 2;

1.3.

NRS 463.3086 is hereby amended to read as follows:

463.3086 1.

If the location of a proposed establishment:

(a) Is not within the Las Vegas Boulevard gaming corridor or the(b) Is not within a gaming enterprise district,  the Commission shall not approve a nonrestricted license for the establishment unless the location of the establishment is designated a gaming enterprise district pursuant to this section.

If a person is proposing to operate an establishment with a nonrestricted license and the location of the proposed establishment:

(a) Is not within the Las Vegas Boulevard gaming corridor or the rural Clark County gaming zone;

and (b) Is not within a gaming enterprise district, - 82nd Session (2023) – 5 – jurisdiction over the location of the proposed establishment to designate the location of the proposed establishment a gaming enterprise district pursuant to this section.

3.

If a person files a petition pursuant to subsection 2, the county, city or town shall, at least 10 days before the date of the hearing on the petition, mail a notice of the hearing to:

(a) Each owner of real property whose property line is less than 2,500 feet from the property line of the proposed establishment;

(b) The owner, as listed on the county assessor’s records, of each of the 30 separately owned parcels nearest the proposed establishment, to the extent this notice does not duplicate the notice given pursuant to paragraph (a);

(c) Each tenant of a mobile home park whose property line is less than 2,500 feet from the property line of the proposed establishment;

and (d) Any advisory board that represents one or more owners of is less than 2,500 feet from the property line of the proposedline establishment.

 The notice must be written in language that is easy to understand and must set forth the date, time, place and purpose of the hearing and contain a physical description or map of the location of the proposed establishment.

The petitioner shall pay the costs of providing the notice that is required by this subsection.

4.

Any interested person is entitled to be heard at the hearing on the petition.

5.

The county, city or town shall cause the hearing on the petition to be reported by a court reporter who is certified pursuant to chapter 656 of NRS.

The petitioner shall pay the costs of having the hearing reported.

6.

At the hearing, the petitioner must prove by clear and convincing evidence that:

the location are adequate;anitation, utilities and related services to (b) The proposed establishment will not unduly impact public services, consumption of natural resources and the quality of life enjoyed by residents of the surrounding neighborhoods;

(c) The proposed establishment will enhance, expand and stabilize employment and the local economy;

(d) The proposed establishment will be located in an area planned or zoned for that purpose pursuant to NRS 278.010 to 278.630, inclusive;

- 82nd Session (2023) – 6 – (e) The proposed establishment will not be detrimental to the health, safety or general welfare of the community or be incompatible with the surrounding area;

(f) [On] Except as otherwise provided in subsection 7, on the establishment was not less than:, the property line of the proposed (1) Five hundred feet from the property line of a developed residential district;

and (2) Fifteen hundred feet from the property line of a public school, private school or structure used primarily for religious services or worship;

and (g) [The] Except as otherwise provided in subsection 7, the proposed establishment will not adversely affect:

(1) A developed residential district;

or (2) A public school, private school or structure used primarily for religious services,  whose property line is within 2,500 feet from the property line of the proposed establishment.

7.

The provisions of paragraphs (f) and (g) of subsection 6 do not apply if:

(a) The location of the proposed establishment consists of 20 or more contiguous acres;

(b) The property line of the proposed establishment is separated by an interstate highway from the property line of any developed residential district, public school, private school or structure used primarily for religious services;

and (c) Part of the location of the proposed establishment is within the8.as A three-fourths vote of the governing body of the county, city or town is required to grant the petition to designate the location of the proposed establishment a gaming enterprise district pursuant to this section.

[8.] 9.

A county, city or town that denies a petition submitted pursuant to this section shall not consider another petition concerning the same location or any portion thereof for 1 year after the date of the denial.

[9.] 10.

As used in this section:

(a) “Developed residential district” means a parcel of land zoned primarily for residential use in which at least one completed residential unit has been constructed on the date that the petitioner files a petition pursuant to this section.

(b) “Private school” has the meaning ascribed to it in NRS 394.103.

- 82nd Session (2023) – 7 – (c) “Public school” has the meaning ascribed to it in NRS 385.007.

Sec.

1.5.

NRS 463.710 is hereby amended to read as follows:

463.710 Unless otherwise ordered by the Board or Commission, a licensee who participates in foreign gaming shall file with the Board:

1.

As soon as participation in foreign gaming begins, [all documents filed by the licensee or by an affiliate with the foreign jurisdiction.] a notice indicating that fact.

2.

[Annual operational and regulatory reports describing compliance with regulations, procedures for audit, and procedures for3.]rveQuarterlyelareports thregarding gaanyg oofratthe.

following information which is within the knowledge of the licensee:

(a) Any changes in ownership or control of any interest in the foreign gaming operation;

(b) Any changes in officers, directors or key employees ;

[of the foreign gaming operation;] (c) All complaints, disputes, orders to show cause and disciplinary actions, related to gaming, instituted or presided over by an entity of the United States, a state or any other governmental jurisdiction [concerning the foreign gaming operation;] outside this State;

(d) Any arrest of an employee [of the foreign gaming operation] involving cheating or theft, related to gaming, in the foreign jurisdiction;

and (e) Any arrest or conviction of an officer, director, key employee or owner of equity in the foreign gaming operation for an offense that would constitute a gross misdemeanor or felony in this state.

3.

As soon as participation in foreign gaming has entirely ceased, a notice indicating that fact.

4.

Such other information as the Commission requires by regulation.

Sec.

2.

~~~~~ 23 - 82nd Session (2023)