How Casino Licensing Works in Nevada

Nevada's long and turbulent history as a gambling mecca began in the mid-1800's, however, State Law did not formally legalize gambling until 1931. The “Wide Bill”, passed by then State Governor Balzar gave counties the freedom to establish their own licensing jurisdictions, providing a 25% slice of all profits were turned over to the State Fund. Present day licensing is rather more regulated than the early days of re-approved gaming, refined under 1955 Legislature and regulated by the Nevada Gaming Control Board – formerly an extension of the Nevada Tax Commission. Founded in 1959, the Nevada Gaming Commission (NGC) constitutes a small, three-member subsidiary of NGCB, responsible for all modern casino licensing procedures.

Reports in September 2011 alluded to the possibility of online gaming licenses being legalized in Nevada. NGC Chairman Mark Lipparelli held a formal public assembly on September 28, 2011, attended by legal officials, poker players and regulators from other jurisdictions, in order to outline strategies for the legalization of online poker. At present, temporary legislation (Regulation 5A) prevents any movement on the decision until the Department of Justice has formally reviewed the current plans. According to NGC, a positive outcome looks promising, which could allow the commission to introduce the new scheme by January 2012.

If successful, the Online Gaming Bill would make Nevada the first US State allowed to regulate and license its own jurisdiction, without threat of intervention by Federal law enforcers. Official confirmation of license costs will not be released until a decision has been reached, however, press reports allege the full online gambling license fee will be set at $500,000, followed by an annual renewal fee of $250,000. There will be a separate license issued for service providers, at a cost of $125,000 per annum and a requirement for all offshore companies to partner with an existing, established Vegas gaming company before any license will be considered.

Nevada's present criteria for the issue of casino licenses is surprisingly complex. NGC currently offer two formats of licensing – the Restricted Gaming License (for sites with less than 15 slot machines), and the Non-Restricted Gaming License, allowing sites to operate 15 or more slot machines, in addition to other gambling formats. All licensees must be incorporated within the jurisdiction and preference is given to those whom are affiliated with existing brands/ companies.

Nevada Gaming Commission is made up of six individual departments, ranging from Investigation and Corporate Securities, to Auditing and Tax. Applications for either license format can take up to a year to progress, due to the rigorous background checks and investigation undertaken by NGC. Applicants are required to submit approved financial records for all business dealings, in addition to details of potential share holders and third party financiers/ creditors. All license applications pass through the 2-stage approval process – firstly by the county jurisdiction and subsequently, by the State Gaming Control Board (NGC).