Nevada Senator Introduces Bill to Crack Down on Illegal Gambling

A Nevada Senator has introduced a bill that aims to enshrine harsh penalties into law for offering illegal gaming activities in the state.

Senate Bill 256 (SB256) was introduced by Senator Nguyen and referred to the Committee on Judiciary.

Illegal Gambling Profits to Be Seized Under New Nevada Bill

The key provisions of the bill include the disgorgement of illegal gambling profits. The bill reads: “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.”

Any operator involved in unlicensed gaming operations, fraudulent gaming activities or found to be accepting wagers unlawfully would be liable for punishment under the disgorgement provision.

Under Nguyen’s proposals, penalties for violations of Nevada Gaming Law would also be significantly increased. A violation of NRS 463.160, or gaming without a license, would become a Category B felony, punishable by up to ten years in prison and a fine of up to $50,000.

If found guilty of fraudulent gaming acts, first-time offenders face a Category C felony, with repeat offenders facing up to six years in prison and fines of not more than $10,000.

“This is a crucial issue that affects not only the credibility of our gaming regulations but also consumer protections and state revenues,” said Nevada Legislative Intern Janice Wong during a public Senate Judiciary Committee hearing on the measure.

She continued: “With the rise of online gaming apps, we’ve seen an increasing number of unlicensed platforms operating in the shadows accepting illegal wagers, engaging in fraudulent practices, and profiting outside the bounds of our regulatory framework. These bad actors not only undermine our legal gaming industry but also put our consumers at risk.”

It also has harsher regulations for operating online wagering services, which include contentious topics such as online sweepstakes casinos and crypto casinos. Although these mediums are not explicitly defined in legislation, iGaming (other than poker) is not legal in its entirety.

SB 256 must now pass through the Nevada Senate and Assembly before reaching the Governor’s desk for approval.

Nevada Leads the Fight Against Illegal Gambling Operations

Traditionally Nevada’s gambling regulators are considered to be leaders in the field. The Nevada Gaming Control Board is currently the only state which has taken action against prediction markets company Kalshi for the offering of election contracts and sports events contracts.

A cease and desist letter sent to the company notified them that “offering event-based contracts on sporting events and election outcomes is unlawful in Nevada, unless and until approved as licensed by the Nevada Gaming Commission.”

The company has been ordered to shutter all operations in the Silver State by 5pm on 14 March 2024. The NGCB Chairman Kirk Hendrick also explained that past actions are still subject to criminal and civil penalties and any future violations would be considered, under state law, ‘willful violations’ and thus carry more severe penalty.