Skill-based gaming and eSports have gathered an inordinate amount of attention and headlines from the public in recent years. Nevada’s gaming industry, however, has yet to embrace the concepts.
That notion caught the attention of the new Gaming Control Board Chairwoman Sandra Douglass Morgan, who is just seven weeks into the job as Nevada’s top regulator.
Morgan told an audience last week at the UNLV Gaming and Hospitality Education Series – 2020 she was hopeful more ideas would come forward and the agency would work with companies looking to bring their ideas to Nevada.
Sandra Douglass Morgan, Chairwoman, Gaming Control Board
“Skill-based slot machines have not gained significant popularity on the casino floor,” Morgan said. “Similar to skill-based gaming, there seems to be public interest in eSports, but not a significant demand from licensees to offer wagers on eSports events.”
Morgan spoke for roughly 30 minutes during a lunchtime address at the conference, her first public remarks outside February’s Gaming Control Board meeting since she was appointed to a four-year term by Governor Steve Sisolak. She is just the second woman and first African American to chair the Control Board in the 60-year history of the fulltime agency, which is tasked with regulating the state’s casino and gaming industry.
Morgan had been the newest member of the part-time, five-person Nevada Gaming Commission – appointed to the post last April by now former-Governor Brian Sandoval. An attorney, she was director of external affairs in Southern Nevada for AT&T Services, Inc. and was responsible for managing the company’s legislative and community affairs activities.
Now seven weeks into the job, Morgan updated the UNLV audience on gaming industry technology issues and where the products stand within the state’s gaming regulatory system.
Also, Morgan said the control board was evaluating last month’s Federal Wire Act opinion from the U.S. Department of Justice’s Office of Legal Counsel. The 23-page document said the Justice Department should ignore a 2011 opinion that allowed online gaming to be legally regulated in the U.S. The new opinion could end Internet wagering in the U.S. and stifle other technology advancements in gaming, such as mobile sports wagering.
“We’re still reviewing the memorandum and looking at potential options,” Morgan said, adding the agency is working with Nevada’s Attorney General’s office, which serves as its legal counsel. In a brief interview, Morgan said the board had not been approached by a Nevada gaming company to take any action against the Wire Act changes.
Morgan told the UNLV audience skill-based gaming – slot machines that include an element of skill as well as elements of chance – have yet to garner much of a buzz.
Only three skill-based gaming companies have been licensed by the state. A fourth company, GameCo, was recommended for a license by the control board this month and will appear in front of the gaming commission on Thursday for final approval.
The board’s technology division has been working with skill-based companies on various products, but the agency hasn’t seen a spike in new games for approval.
As for eSports, Morgan said the control board has received just four requests to approve wagers on video game-style competition events since the Nevada Legislature approved the concept in 2017.
“As the eSports evolve and oversight and sanctioning organizations emerge, the board expects an increase in the amount of eSports style wagering,” Morgan said.
The chairwoman wasn’t as positive about Nevada casinos being allowed to accept wagers from customers using Bitcoin or other blockchain currency. Bitcoin is not regulated and is treated as a commodity, not currency.
Morgan said gaming regulators could have a problem effectively monitoring Bitcoin transactions as to how the activity would comply with federal anti-money laundering laws and calculating taxes. Values of the product can change between the time when a wager is placed to when the casino operator calculates revenue.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter.
