The Nevada Senate voted 20-0 in favor of a bill that attempts to address growing concerns over online gaming in the form of offshore betting and sweepstakes.
Sen. Rochelle Nguyen’s Senate Bill 256 proposes that operators found guilty of illegal online gaming would have to pay all earnings into Nevada’s general fund.
An amendment stated, “The court shall also order any profits, gain, gross receipts or other benefit from the violation to be disgorged and paid to the State Treasurer for deposit in the State General fund.”
Some offenses would also be upgraded from misdemeanours to felonies and carry prison sentences of up to 10 years.
The bill allows Nevada to prosecute unlicensed operators based outside the state who accept bets from residents. This is an attempt to target the rise of offshore betting companies and other alternative betting sites.
The latest approval in the Senate marks the bill at 25% progression after its introduction in February. It will now head to the Assembly for further discussion.
Record numbers for online gaming
Last year saw record numbers for gaming in Nevada for the fourth straight year. The state saw $15.6 billion in gaming revenue. Slot machines accounted for the biggest chunk of that with over $10 billion wagered. However, revenue on the Las Vegas strip decreased from $8.9 billion in 2023 to $8.8 billion in 2024.
The change was only slight, but with overall gaming revenue increasing, it may mark a shift towards online gaming away from traditional casinos.
Legal online gaming is available in Nevada, but more and more players are also using alternative methods such as sweepstakes casinos.
Sweepstakes casinos have been on the rise as they offer faster ways of gambling as well as several deposit options, including cryptocurrencies. Revenue exceeded $4 billion last year and predictions for this year expect that to rise further.
States battle with alternative gambling
Many states have attempted to make stricter regulations against illegal online gaming. Operators were forced to withdraw from New York due to stricter regulations. Similar bills have also been proposed in Illinois, Louisiana, and Mississippi recently.
The bill gained support from the Nevada Gaming Control Board (NGCB), the Association of Gaming Equipment Manufacturers (AGEM), and the Nevada Resort Association. Licensed casino operators fear losing out on revenue to online gaming operators outside the state and are keen for legislation to protect their interests.
The state has also been fighting against Kalshi over their prediction markets. A federal court sided with Kalshi on Tuesday, but the case will continue later this month.
SB256 would give the NGCB more power than sending cease-and-desist letters as it did with Kalshi. It signals a constant running battle between regulators and operators who attempt to find legal loopholes to offer various forms of gambling.
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