SB 379 — Revises provisions relating to gaming. (BDR 41-1016)

(a) Require a secondary sports pool wagering broker to be registered with the Board.

(b) Require each employee of a secondary sports pool wagering broker to register with the Board, and renew such a registration, in the same manner as a gaming employee.

(c) Prescribe the period for which a registration as a secondary sports pool wagering broker is valid.

(d) Establish fees for the application and renewal of a registration as a secondary sports pool wagering broker.

- *SB379* – 3 – (e) Establish fees for the application and renewal of a registration of an employee of a secondary sports pool wagering broker, which may not exceed the fees for the application and renewal of a registration as a gaming employee.

(f) Set forth requirements for the operation of a secondary sports pool wagering broker.

(g) Address such other matters as the Commission deems necessary to carry out the provisions of this section and which are consistent with the public policy of the State pursuant to NRS 463.0129.

ExceptThe as otherwise provided by specific statute or by the regulations adopted pursuant to thissubsection section,2 anmay, employeewithout oflimitation: a secondary sports pool wagering broker shall be deemed to be a gaming employee for the purposes of all provisions of this chapter and the regulations adopted pursuant thereto that apply to a gaming employee.

(a) Require each sports wagering ticket broker, each holding company or intermediary company of a sports wagering ticket broker and each owner, officer, member, manager, partner, trustee, beneficiary and key employee of a sports wagering ticket broker or holding company or intermediary company of a sports wagering ticket broker to be registered with the Board and to submit to the Board’s jurisdiction;

(b) Require any person described in paragraph (a) to file an application for a finding of suitability;

(c) Establish fees for the issuance and renewal of a registration required pursuant to this section, including, without limitation, any application fee and any fee for the investigation of an applicant;

(d) Prescribe the period in which a registration required pursuant to this section is valid;

(e) Set forth requirements concerning the manner and method by which a sports wagering ticket broker must facilitate the sale and transfer of an active sports wager;

(f) Require a sports wagering ticket broker to adopt procedures setting forth the method and manner by which the sports wagering ticket broker will:

(1) Prevent transactions with any person who has been placed on the list of persons to be excluded or ejected from any licensed gaming establishment pursuant to NRS 463.151;

(2) Detect and prevent transactions that may be associated with money laundering, fraud and other criminal activities;

and - *SB379_R1* – 4 – (3) Ensure that the sports wagering ticket broker complies with all applicable requirements set forth in state and federal law, including, without limitation, requirements pertaining to the identification and verification of the identity and age of a customer, geolocation, the placement of a wager for the benefit of another and any other applicable requirements and restrictions;

(g) Require a sports wagering ticket broker to maintain records of all transactions involving the sale and transfer of active sports wagers facilitated by the sports wagering ticket broker for a prescribed period of time;

(h) Require a sports wagering ticket broker to deposit with the Board and thereafter maintain a refundable revolving fund in an amount determined by the Chair of the Board to pay the expenses of any investigation by the Board into the activities of the sports wagering ticket broker;

and (i) Set forth any other requirements for the registration and operation of sports wagering ticket brokers that the Commission deems necessary.

InA additionsports towagering theticket registrationbroker requireddoes pursuantnot tobecome subsectiona 2,party theto Commission, upon recommendation of the Board, may require an owner,active operator or employee of a secondary sports poolwager wageringmerely brokerby orfacilitating anythe personsale whoand hastransfer significant involvement with the activities of athat secondaryactive sports poolwager wageringfrom brokera seller to file an application for a findingbuyer. of suitability.

IfAny andispute applicationinvolving forthe asale findingor transfer of suitabilityan isactive notsports submittedwager, toregardless theof Boardwhether withina 30sports dayswagering afterticket thebroker Commissionis sodirectly requests,or theindirectly Commissioninvolved mayin pursuethe anydispute, remedymust orbe combinationresolved ofpursuant remediesto providedNRS in463.362 thisto chapter.463.3668, inclusive.

Sec.A sports wagering ticket broker is subject to the provisions of NRS 463.362 to 463.3668, inclusive, in the same manner as a licensee.

6.

The Chair of the Board may require a sports wagering ticket broker, a holding company or intermediary company of a sports wagering ticket broker or an owner, officer, member, manager, partner, trustee, beneficiary or key employee of a sports wagering ticket broker or a holding company or intermediary company of a sports wagering ticket broker to register with the Board or file an application for a finding of suitability to be associated with a race book or sports pool operation.

7.

A computerized system used by a sports wagering ticket broker to facilitate the sale and transfer of an active sports wager must not communicate directly with any computerized system of betting used by a sports pool except for the purposes of:

(a) Substituting the identity of the buyer of the active sports wager for the identity of the seller on the betting ticket for the active sports wager;

or (b) Issuing a substitute betting ticket for the active sports wager with the buyer of the active sports wager identified as the bettor.

- *SB379_R1* – 5 – Sec.

463.013 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 463.0133 to 463.01967, inclusive, and sectionsections 1.5 and 2 of this act have the meanings ascribed to them in those sections.

5.5.

NRS 463.0136 is hereby amended to read as follows:

463.0136 “Associated equipment” means any equipment or mechanical 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 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 , computerized systems used by a sports wagering ticket broker to facilitate the sale and transfer of an active sports wager which communicate directly with a computerized system of betting at a sports pool and devices for weighing or counting money.

Sec.

NRS(Deleted 463.160by isamendment.) herebySec. amended to read as follows:

463.1607. 1.

Except as otherwise provided in subsection 3 and NRS 462.155463.710 and 463.172, it is unlawfulhereby foramended anyto person,read either as owner,follows: lessee or employee, whether for hire or not, either solely or in conjunction with others:

-463.710 *SB379*Unless –otherwise 4ordered –by (a)the ToBoard deal,or operate,Commission, carrya on,licensee conduct,who maintainparticipates or expose for play in theforeign Stategaming of[, Nevadaother anythan gamblinga game,foreign gaming device,manufacturer,] slotshall machine,file racewith bookthe orBoard: sports pool;

(b)1. To provide or maintain any information service;

(c)As Tosoon operateas aparticipation in foreign gaming salon;begins, [all documents filed by the licensee or by an affiliate with the foreign jurisdiction.] a notice indicating that fact.

(d) To receive, directly or indirectly, any compensation or reward or any percentage or share of the money or property played, for keeping, running or carrying on any gambling game, slot machine, gaming device, race book or sports pool;

(e) To operate as a cash access and wagering instrument service provider;

[or] (f) To operate, carry on, conduct, maintain or expose for play in or from the State of Nevada any interactive gaming system [,] ;

or (g) To operate as a secondary sports pool wagering broker,  without having first procured, and thereafter maintaining in effect, all federal, state, county and municipal gaming licenses or registrations as required by statute, regulation or ordinance or by the governing board of any unincorporated town.

Except[Annual asoperational otherwiseand providedregulatory inreports subsectiondescribing 3,compliance itwith isregulations, unlawfulprocedures for anyaudit, personand knowinglyprocedures tofor permitsurveillance anyrelating gambling game, slot machine, gaming device, 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,foreign ingaming wholeoperation. or in part, by a person who is not licensed pursuant to this chapter, or that person’s employee.

3.] Quarterly reports regarding any of the 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 - *SB379_R1* – 6 – jurisdiction [concerning the foreign gaming operation;] outside of 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.

TheAs Commissionsoon may,as byparticipation regulation,in authorizeforeign a person to own or lease gaming deviceshas forentirely theceased, limited purpose of display or use in the person’s private residence without procuring a statenotice gamingindicating license.that fact.

ForSuch theother purposesinformation ofas this section, the operationCommission ofrequires aby raceregulation. book or sports pool [includes] :

(a) Includes making the premises available for any of the following purposes:

[(a)] (1) Allowing patrons to establish an account for wagering with the race book or sports pool;

[(b)] (2) Accepting wagers from patrons;

[(c)] (3) Allowing patrons to place wagers;

[(d)] (4) Paying winning wagers to patrons;

or [(e)] (5) Allowing patrons to withdraw cash from an account for wagering or to be issued a ticket, receipt, representation of value or other credit representing a withdrawal 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.

- *SB379* – 5 – (b) Does not include operating as a secondary sports pool wagering broker.

5.

A separate license must be obtained for each location at which [such an] the operation of a race book or sports pool is conducted.

7.8.

NRS 463.710465.094 is hereby amended to read as follows:

463.710465.094 1.The provisions of NRS 465.092 and 465.093 do not apply to global risk management pursuant to NRS 463.810 and 463.820 , to the operations of a sports wagering ticket broker registered pursuant to the regulations adopted pursuant to section 3.5 of this act or to a wager placed by a person for the person’s own benefit or, without compensation, for the benefit of another that is accepted or received by, placed with, or sent, transmitted or relayed to:

Unless1. otherwise ordered by the Board or Commission, a licensee who participates in foreign gaming , other than a foreign gaming manufacturer, shall file with the Board:

[1.]A (a)race Asbook soonor assports participationpool inthat foreignis gaminglicensed begins,pursuant allto documentschapter filed463 byof NRS, if the licenseewager is accepted or byreceived anwithin affiliatethis State and otherwise complies with theall foreignother jurisdiction.applicable laws and regulations concerning wagering;

[2.] (b) Annual operational and regulatory reports describing compliance with regulations, procedures for audit, and procedures for surveillance relating to the foreign gaming operation.

[3.] (c) Quarterly reports regarding any of the following information which is within the knowledge of the licensee:

[(a)] (1) Any changes in ownership or control of any interest in the foreign gaming operation;

[(b)] (2) Any changes in officers, directors or key employees of the foreign gaming operation;

[(c)] (3) 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;

[(d)] (4) Any arrest of an employee of the foreign gaming operation involving cheating or theft, related to gaming, in the foreign jurisdiction;

and [(e)] (5) 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.

[4.] (d) Such other information as the Commission requires by regulation.

UnlessA otherwiseperson orderedwho byis licensed to engage in off-track pari-mutuel wagering pursuant to chapter 464 of NRS, if the Boardwager is accepted or Commission,received awithin foreignthis gamingState manufacturerand shallotherwise filecomplies with thesubsection Board:3 of NRS 464.020 and all other applicable laws and regulations concerning wagering;

(a) An annual report that sets forth a list of the location of each gaming device from which the foreign gaming manufacturer receives recurring gaming revenue.

(b) Quarterly reports regarding all complaints, disputes, orders to show cause and disciplinary actions in which the amount of any penalty imposed was $10,000 or more, which are related to gaming and instituted or presided over by an entity of the United States, a state or any governmental jurisdiction concerning the foreign gaming operation.

- *SB379* – 6 – (c) Such other information as the Commission requires by regulation.

AsAny usedother person or establishment that is licensed to engage in wagering pursuant to title 41 of NRS, if the wager is accepted or received within this section:State and otherwise complies with all other applicable laws and regulations concerning wagering;

(a)or “Foreign4. gaming manufacturer” means a licensee whose gaming revenue from the placement of a gaming device outsiderring this State.

(b)Any “Recurringother gamingperson revenue”or meansestablishment compensationthat receivedis fromlicensed theto placementengage ofin awagering gamingin deviceanother outsidejurisdiction thisand Stateis thatpermitted isto calculatedaccept asor receive a percentagewager offrom thepatrons winningswithin orthis revenueState ofunder an agreement entered into by the gamingGovernor device.pursuant to NRS 463.747.

TheH term- does*SB379_R1* not include any money received from:

(1) The sale of a gaming device in which absolute title to the gaming device passes from the seller to the buyer.

(2) The lease of a gaming device that is not calculated as a percentage of the winnings or revenue of the gaming device.

H - *SB379*