Board Member of Nevada Gaming Control Board
Gaming Regulation in Nevada
The Nevada Gaming Control Board is charged with protecting the integrity and stability of the ever-evolving gaming industry. The board executes this statutory mandate through exhaustive investigative procedures, comprehensive licensing practices and strict enforcement of laws and regulations that hold gaming licensees to high standards. These practices ensure the proper collection of taxes and fees, an essential source of revenue for the state of Nevada. To maintain industry stability, the board’s strict practices must be balanced with sufficient autonomy for licensees to innovate. It is through such balance that the board protects its rightfully earned, historical reputation around the globe as the leader in gaming governance. From charitable gaming to card games and slot machines to sports betting, Nevada leads.
Early on, Nevada understood that gaming, when properly regulated, can thrive. Even when public sentiment elsewhere was less amiable, Nevada became the first state to legalize gambling in 1931. In 1949, Nevada legalized sports betting. Early sports scandals hurt public confidence and very few states enacted sports betting regimes; but that has all changed. Today, seventy-seven percent of American adults support legalization in their state of residence.
Gaming Expansion in the U.S.
The shifting sentiment toward gambling can be attributed in part to the fall of the Professional & Amateur Sports Protection Act of 1992 (PASPA). PASPA prohibited state-sanctioned sports betting but provided exception to existing regimes, which included single-game wagering in Nevada. The 1992 ban had the effect of placing Nevada in a sports betting league of its own. Then, in a 2018 landmark United States Supreme Court decision, Murphy v. National Collegiate Athletic Association, the Court declared that PASPA violated the Constitution.
In the five years since the fall of PASPA, the sports betting market has quickly become highly competitive, with numerous other jurisdictions getting in on the action. Now, thirty-eight states and Washington D.C. have legalized some form of sports betting. More are expected to follow. Professional sports leagues, teams, brands and media companies are all getting in on the action, too. Once opposed to the expansion of sports betting, leagues have now embraced it. Many major league franchises now have gambling sponsors, and you can find sports books or lounges in or near their stadiums.
Impact of Expansion on Nevada
When PASPA ruled, and major sporting events occurred, fans could always come to Nevada, where adults could legally place a wager. With PASPA defeated, fans suddenly have numerous choices about where to place a wager. Rather than fretting about the competition, Nevada operators embraced the opportunity to expand to other jurisdictions. This was not only an opportunity for operators to create revenue there, but to bring customers and revenue back here. Hence, the expansion of sports betting to new jurisdictions has brought opportunities for Nevada licensees to attract wider audiences.
Expansion and related demand have propelled contemporary solutions aimed at attracting today’s technology-friendly players. In this environment, Nevada has welcomed an influx of new innovators who seek information service and manufacturing licenses for sports wagering products. In addition, Nevada has seen an increase in mobile sports wagering. Mobile devices offer convenient access and innovative technologies that expand wagering opportunities, such as in-play wagering allowing patrons to place bets after events start. Mobile usage also brings together innovative technologies like cashless wagering, responsible gambling measures and geolocation services that restrict wagering to the appropriate, regulated jurisdiction.
So, how has Nevada fared since PASPA ended its sports betting monopoly on single-game wagers? Nevada continues to flourish alongside other sports betting regimes, and even has its own professional teams to bet on now. According to the American Gaming Association, licensed U.S. sports betting is on track for a record-setting 2023 after a record-setting 2022. In 2022, continued expansion of the U.S. legal market drove handle to $93.8 billion and revenue to $7.6 billion. The last two fiscal years have similarly brought record-setting handle and revenue to Nevada. Total sports wagers of $8.348 billion in 2023 were only eclipsed by the record set in 2022 of $9.212 billion, the highest in state history. Gaming win for Nevada sportsbooks in 2023 was the highest ever, $460.2 million, beating the $432.2 million record set in 2022, a 6.49 percent increase. The Nevada sportsbook experience remains unique and attractive.
Regulating Amid Expansion
Nevada regulators’ relationships with other jurisdictions have also, necessarily evolved. First, because suitability to possess a privileged license in Nevada depends in part on licensee compliance with other jurisdictions’ laws and regulations, Nevada regulators must increasingly observe compliance patterns elsewhere. Second, many of the laws and regulations that Nevada licensees are required to abide by in other jurisdictions were modeled after Nevada, with the assistance of Nevada regulators. The board continues assisting other jurisdictions in this regard, as they look to Nevada for guidance and cooperation.
Third, Nevada regulators continue to collaborate with other jurisdictions on a global scale to exchange information on prominent issues, such as game integrity, cybersecurity and controls on technology that ensure safe betting.
As gaming continues to expand, and new companies enter the market with varying corporate structures, varying contractual arrangements and varying degrees of knowledge of heavily regulated environments, the board must adapt to the corresponding challenges. As it always has, the board stands ready to lead, meet, and exceed those challenges.
Dr. Brittnie T. Watkins
Board Member of Nevada Gaming Control Board
