Nevada going after online gambling sites

According to the American Gaming Association (AGA), unregulated offshore betting cost licensed casino operators nationwide almost $17 billion in lost revenue last year. Nevada is currently targeting the activity to eradicate it.

SB256, written by Sen. Rochelle Nguyen of Las Vegas, would provide Nevada judges the authority to impose harsher penalties than the $50,000 fine that illegal gambling operators already face for breaking the state's online gaming regulations. The bill suggests making some offenses gross misdemeanors instead of misdemeanors and requiring the disgorgement of any gains related to the offense.

According to Nguyen, the legislation's concept originated from conversations she had with Nevada gaming leaders, such as the Association of Gaming Equipment Manufacturers (AGEM), and during conferences organized by the National Council of Legislators from Gaming States. One of her law school classmates was Daron Dorsey, the organization's executive director.

Although the exact amount Nevada was losing to unregulated gaming websites is unknown, Dorsey estimated it to be in the millions to tens of millions of dollars.

The Nevada Resort Association, the Nevada Council on Problem Gambling, the Las Vegas Chamber of Commerce, and AGEM all backed the legislation when it was recently introduced in the Senate Judiciary Committee.

At a Nevada Gaming Control Board workshop, Virginia Valentine, president of the Nevada Resort Association, spoke with Dorsey. The AGA's senior director of government relations wrote to the committee prior to the hearing to encourage the passage of SB256, stating that Nevada was a good example of leadership in effectively regulating gaming.

According to the senior director, illicit operators don't provide the responsible gambling guidelines or other consumer protection standards that regulated markets require. According to him, illicit operators deprive Nevada of tax funds.

Due to competition from traditional casino operations, the gambling industry in Nevada has long resisted the licensing of internet casinos. Alongside their land-based casino operations, a number of corporations, including Boyd Gaming, run internet casinos in other states.

Despite Nevada's 2013 legalization of online poker, the market never expanded above four operators. The two licensed online poker companies that are currently operating are South Point Casino and World Series of Poker. The Control Board does not record monthly and year-end revenue from online poker as a separate category since the revenue figures are so tiny.

Nevada allows online sports betting, but a player must first open an account at a casino that has a licensed sportsbook. In Nevada, the mobile apps of major sportsbook operators like DraftKings and FanDuel are disabled due to geolocation protocols.

In the last 20 years, just six states have permitted online casinos, including New Jersey, Pennsylvania, and Michigan. Legal internet casinos generated $8.4 billion in revenue in 2024, up 29% from 2023, according to the AGA.

Nonetheless, the AGA said in February that illicit online casinos earned $17.3 billion in income from wagers totaling over $402 billion in 2024.

Existing operator Full House Resorts reported that it anticipates an extension of the company's short-term contract to run the casino at the Hyatt Regency Lake Tahoe in Incline Village.

If Hyatt Lake Tahoe owner Larry Ellison, who purchased the scenic property in 2021, renovates the resort, that casino would gain. According to Forbes, Ellison, who founded the database company Oracle, is worth $184.8 billion.

After the $9.2 million sale of its Stockman's Casino in Fallon is finalized, Hyatt's casino, which is 19,000 square feet and has 255 slot machines and 20 table games, will be the smallest of Full House's five locations.

Source:

“Illegal online gambling sites could face stiffer penalties under Nevada bill” , Howard Stutz, thenevadaindependent.com, March 19, 2025.