BEYOND THE SLOT MACHINE: NEW BILL DIRECTS NEVADA'S
GAMING REGULATORS TO CRAFT REGULATIONS TO ALLOW "HYBRID"
GAMES
by Kate Lowenhar-Fisher, Jennifer Gaynor and Greg Gemignani
Nevada is the world's preeminent gaming destination. Not by
chance, but by being a leader in gaming and entertainment
innovations. Nevada was the first state in the nation to legalize
gaming in 1931, the first to introduce the world to the
"casino-resort" with the Mirage in 1989, and, more
recently, the first state to license and regulate Internet gaming.
Now Nevada legislators have given regulators the green light to
allow for the state to take a leadership position in the new world
of "hybrid" games.
What is a "hybrid" game? For those who follow gaming
law, you know there are two types of games, skill games and games
of chance. Then there are those games that fall somewhere on the
spectrum between "pure skill" games and "pure
chance" games. A "hybrid" game would be one where,
by definition, the outcome will be determined by a combination of
skill and chance – and possibly other factors (or
"identifiers"), including frequency of play, use of other
casino services or amenities, and use in combination with other
technologies, such as social networking platforms like Facebook and
Instagram.
The idea is to draw in a new generation of customers who relate to
electronic skill-based game play and would be drawn to features
such as bonus rounds that reward the skill of a player, integration
of the games with their social media accounts, interactive
networked game play, and the use of electronic commerce
transactions.
Senate Bill 9 calls for the Nevada Gaming Commission to draft
regulations allowing the development of such technology for gaming
devices. The bill includes a policy directive and enhanced
rulemaking authority to make it clear that Nevada's gaming
regulators have the authority to both develop technical standards
for such hybrid games and to allow incorporation of other
technologies into gaming devices.
NEW LAW PROVIDES GAMING INDUSTRY WITH BROADER BACKGROUND
INVESTIGATION POWERS
by Kate Lowenhar-Fisher, Jennifer Gaynor and Greg Gemignani
The Nevada Legislature has amended the state's consumer
reporting laws to remove restrictions on the information a credit
reporting agency may report to gaming operators. With the passage
of Senate Bill 409, a credit reporting agency is no longer
prohibited from reporting to gaming licensees information about a
job applicant regarding bankruptcies older than ten years, other
civil judgments older than seven years, and criminal convictions
older than seven years.
Sponsored by former Nevada Gaming Control Board Chairman Senator
Mark Lipparelli, SB409 is aimed at allowing gaming operators to
conduct more thorough background checks on prospective
employees.
Federal law (15 U.S.C. § 1681c) prohibits a credit reporting
agency from disclosing in an individual's credit report
information related to a bankruptcy filing that is more than ten
years old and certain other negative credit information, including
reports of a civil judgment or criminal proceeding that is more
than seven years old. Nevada Revised Statutes 598C.150 contained
similar prohibitions.
However, the federal law provides for certain exceptions,
including an exception for a credit report prepared in connection
with the employment of an individual whose salary will be greater
than $75,000.
Senate Bill 409 creates a similar exception in Nevada state law
for a credit report prepared for a gaming licensee in connection
with a person who is seeking employment with the licensee or
employment in a position connected directly with the licensee's
operations.
The bill also removes the prohibition against disclosing a record
of conviction of a crime which is more than seven years old,
meaning that there is no limitation of time for which such a record
may be disclosed.
These changes are effective upon bill passage, which means that
those seeking positions in Nevada's gaming industry should be
aware that this information will be made available to their
prospective employer and take extra care to proactively disclose
all bankruptcies, civil judgments, and criminal proceedings, no
matter the age of the event.
CANADIAN GAMING SUMMIT LESS THAN ONE MONTH
AWAY
This year's Canadian Gaming Summit, which is advertised as
Canada's premier annual conference and exhibition for gaming
professionals, will take place at Caesars Windsor from June
16-18.
The Canadian Gaming Summit has educational programs, a trade show,
networking events, an annual awards program, and a charity
reception.
Dickinson Wright attorneys have integral roles organizing and
participating in the legal and regulatory educational
programs.
Michael Lipton, from Dickinson Wright's Toronto office, is the
current co-chair of the legal and regulatory track and is
moderating an anti-money laundering panel and an iGaming panel. Bob
Stocker, from Dickinson Wright's Lansing office, is joining
Michael on the iGaming panel.
Kevin Weber, from Dickinson Wright's Toronto office, is
moderating a panel discussion of problem gambling lawsuits. Thomas
McNeill, from Dickinson Wright's Detroit office, will be
participating on that panel.
Jack Tadman, from Dickinson Wright's Toronto office, will be
moderating a panel on the legality of fantasy sports. Greg
Gemignani, from Dickinson Wright's Las Vegas office, will be
participating on that panel.
At the 2011 Canadian Gaming Summit, Michael Lipton received the
Canadian Gaming Association's lifetime achievement award in
recognition of his contributions to the Canadian gaming
industry.
The Canadian Gaming Summit is well attended by regulators,
operators, and suppliers. It is an excellent way to make
introductions and network with prominent stakeholders in the
Canadian gaming industry.
BILL C-290 LOSING STEAM
by Michael D. Lipton, Q.C., Kevin J. Weber and Jack Tadman
Bill C-290 is a private member's bill which would alter the
Canadian Criminal Code to allow for provincial lottery corporations
to offer single-game sports betting.
Despite passing through the House of Commons unanimously, Bill
C-290 has been held up by the Canadian Senate since 2012.
In January 2015, Kathleen Wynne, the Premier of Ontario, and
Ontario's Finance Minister Charles Sousa, spoke publicly in
favour of passing Bill C-290.
Senator Bob Runciman, a supporter of Bill C-290, said in a May
2015 interview with CBC News that "he would be surprised"
if Bill C-290 was passed.
According to Senator Vern White, who is opposed to passing the
bill, passing Bill C-290 is not a priority of the Senate and there
may not be enough support within the Senate to pass it.
If the Bill is not passed prior to the Canadian elections, which
are tentatively scheduled for October 19, 2015, Bill C-290 must be
reintroduced into the House of Commons and essentially start from
the beginning.
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