The Regology Regulatory Report is a monthly roundup analyzing gambling legislation in the US.
As we put an end to the summer and Q4 is already underway, the US state legislatures are gearing up for 2024 and will soon be releasing new calendars for the upcoming sessions starting in January. There is some action going on in the Oklahoma State Legislature, which called a special session regarding taxes on October 3. The session was convened and adjourned on the same day for Senate members. The House of Representatives, however, remains in special session. The eight state legislatures continuing with regular sessions until the end of the year are California, Massachusetts, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, and Wisconsin. During the month of September 2023, a total number of 19 gambling-related bills went through various stages of the lawmaking process. This report will highlight bills that became law and some that have shown movement during this month.
Hot Topic of the Month: Nevada Control Board and Gaming Commission
The Nevada Control Board and Gaming Commission has issued a number of alerts this month regarding adopted amendments to gaming regulations and standards; notices of hearings on proposed amendments to regulations, and technical bulletins.
2023-82 Adoption of Amendments to Regulations of the Nevada Gaming Control Board and Nevada Gaming Commission [effective: 9/21/2023] – New amendments to regulations have been adopted and go into effect immediately. Among the regulations affected are:
Regulation 3 – Licensing Qualifications Section 3.100 Employee Report has been repealed.
Regulation 5 – Recent updates to this regulation no longer requires licensees to submit the name, gaming registration number, position held, and date of hire for each gaming employee hired during the immediately preceding month.
Regulation 6 – There are two major changes to this regulation regarding internal controls for Group I licensee requirements and mandatory disclosure provisions for credit applications and credit instruments regarding signature requirements. The first change to internal control reporting requirements lifts the requirement of a letter from an independent accountant stating that the applicant’s written system has been reviewed by the accountant and complies with the requirements. For a patron’s signature on a credit instrument, “a licensee may accept either a handwritten signature or an electronic signature. A licensee that accepts an electronic signature on a credit instrument shall comply with the applicable provisions of NRS chapter 719.”
Regulation 14 – Two sections have been repealed from this regulation, which includes installation of a system based game or a system supported game and duplication of program storage media. Other recent changes to this regulation can be found in section 14.170(1)(b)(2) where language has been deleted from the requirement for marking, registration, and distribution of gaming devices in the state. The previous requirement mandated the Board approval number or modification approval number to be affixed on all program storage media placed in the device. The requirements for approval of promotional devices, applications and procedures has also been changed to allow restricted licensees to offer a promotional device for play.
Regulation 20 – Requirements for buyers and users to file a monthly written report, itemized by track, of the amounts wagered at the buyer’s or user’s establishment of races and events for which a disseminator supplies the buyer or user with horse or other racing information used to determine winners of or payoffs on the wagers is now due on the 15th of each month instead of the 24th. Furthermore, financial statements submitted to the Board are no longer required to be in duplicate. In the event of a license termination, the submission of financial statements is no longer required unless the Chair makes a request to review “financial statements covering the period since the period covered by the previous financial statement. In the event a new license is granted, within 120 days prior to the end of the business year, the licensee may submit financial statements for this period in conjunction with the financial statements for the first full business year, not later than 120 days after the end of the first full business year.”
Regulation 23 – Card Games – Any licensee wishing to utilize the casino cage in lieu of a card room bank no longer requires written Board approval
Regulation 26 – PariMutuel Wagering – The maximum deduction that can be taken from a gross pool’s commission has been raised to 18 percent of the pool instead of 13 percent. From the commission deducted, the tax due to the Nevada Gaming Commission is now 3 percent instead of two percent of the sum of all pari-mutuel wagers.
Amendments to The Nevada Gaming Control Board Surveillance Standards For Non Restricted Licensees Section 1.010(5), Standard 1(2), and Standard 12(9) [effective: 10/9/2023] – The amendments remove the definition of “slot change booth” and the requirement for category A and B licensees to monitor and record activities occurring in slot change booths. The requirement that licensees notify the NGCB if any portion of their surveillance system changes from an analog to a digital video recorder (DVR) format is also removed.
Notice of Hearing For Consideration of Proposed Amendments to Nevada Gaming Commission Regulation 22 – A hearing is scheduled 10:00 a.m. on October 19, 2023 for amendments to allow race books and sports pools (books) to determine whether to accept wagers on esports events.
Gaming Bills on the Move
Win, Lose, or Draw: Recently Passed Legislation
Casino: Michigan – Business Tax Act – Investments that are not eligible for a tax credit are “investments attributable or related to the operation of a casino, associated or affiliated with the operation of a casino, including, but not limited to, the operation of a parking lot, hotel, motel, or retail store.” [HB 4829 (9/12/2023) Became Law – assigned PA 120’23 with immediate effect]
Casino: North Carolina – 2023 Appropriations Act – Recently passed legislation in June 2023 permits wagering on sports from cellphones and other electronic devices. However, the Appropriations Act was passed without any provision to legalize commercial casinos and video lottery terminals (VLTs). Furthermore, there were no appropriations made to include casinos with mobile sports betting. [HB 259 (9/22/2023) Sent for Signature (10/3/2023) Became Law]
Horse Racing: California – Fairground Satellite Wagering Facilities – permits any fair in the County of Stanislaus, to operate one satellite wagering facility within the boundaries of the fair, on the same conditions as apply in the Counties of Kern and Shasta. [AB 1074 (9/30/2023) Became Law]
On the Clock and In-Play: Movement on Active Bills
Bingo: Wisconsin – Under current law, withdrawals from a bingo account are normally made by check and payable to an individual. However, the exception to this rule is when the prize is to be equally divided among several winners. The amount of allowable cash withdrawal from a bingo account for the purpose of paying cash prizes has been increased per winner from $10 to $25 for the exception to apply. [SB54 (9/6/2023) Senate recommended passage]
Business Tax: Massachusetts – General Law Chapter 63, Section 38- Determination of Net Income Derived from Business Carried on within the Commonwealth – This section is amended to clarify when income is sourced to Massachusetts. The new language now states that, “a business deriving receipts from operating a gaming establishment or otherwise deriving receipts from conducting a wagering business or activity, income-producing activity shall be considered to be performed in the commonwealth to the extent that the location of wagering transactions or activities that generated the receipts is in the commonwealth” [HB 4104 (9/28/2023) Sent for Signature]
Casino: California – Key Employees – repeals provisions relating to key employees working at different gambling establishments with provisions to waive the requirement for a deposit and investigation performed by the department at the time of application. A new owner license, valid for 2 years, will be established that allows for a person or entity to be endorsed on the license certificate of multiple gambling enterprises. The bill would authorize a person with a work permit issued by the commission to act as a gambling enterprise employee, or serve as an independent agent, and entitle the holder of the work permit to work for any gambling enterprise for which the commission issues work permits as a gambling enterprise employee after proper notification to the department. [AB 1271 (9/19/2023) Sent for Signature]
Lottery: Pennsylvania – Disclosure of Lottery Prizewinner Identities – the name, address and other personal information of a prizewinner awarded more than $100,000 will remain confidential and not considered public record unless the prizewinner signs a Waiver of Confidentiality. [SB-373 (9/18/2023) Passed Body of Origin and Referred to House Finance Committee]
New Player In the Game: Recently Introduced Legislation
Casino: US Federal – Permits employees to request changes to their work schedules without fear of retaliation and to ensure that employers consider these requests. Requires employers to provide more predictable and stable schedules for employees in certain occupations, with evidence of unpredictable and unstable scheduling practices that negatively affect employees, and for other purposes. The definition of “Covered Sector Employee” includes retail sales occupations and first-line supervisors of gambling change persons and booth cashiers. [Companion Bills: 118 S 2851 and 118 HR 5563 (9/19/2023) Introduced; Referred to Committee on Education and the Workforce, Committees on House Administration, Oversight, and Accountability]
Casino: Pennsylvania – Protecting Workers from Secondhand Smoke Act – smoking will be prohibited in casinos and other facilities that came under the exemptions of the Clean Indoor Act of 2008. [HB 1657 (9/5/2023) Introduced]
