Regulators may restrict in-store gambling

John Wilen

Friday, Jan. 29, 1999 | 12:15 p.m.

Nevada gaming regulators are considering a set of new rules restricting gambling machines in retail businesses to alcoves and other areas physically separated from the main part of the store.

Other regulations under consideration would ban smoking in the gambling alcoves of grocery, drug and convenience stores; and would prohibit retail establishments from advertising themselves primarily as places to gamble.

The Nevada Gaming Commission discussed what the new regulations should say Thursday. Actual draft regulations will be written over the next month and introduced at the Commission's February meeting. The draft regulations will then be discussed for several months, and won't likely be adopted until later this year.

The fact that the Commission is talking about placing restrictions on the location of gambling machines in retail businesses is an indication of how quickly the idea has caught on.

Last year, Las Vegas Mayor Jan Laverty Jones proposed banning gambling machines from retail establishments. That proposal met fierce resistance from the slot route industry. Jones later backed off, settling for a slot route industry commitment that gambling machines be physically separated from the main store, that gambling areas be closely supervised to prevent minors from using gambling machines, and that more effective smoke removal machines be used.

But at Thursday's meeting, the Gaming Commission discussed writing some of those ideas -- and in some cases more stringent versions of those ideas -- into law.

"We would like to see to it neighborhood gaming protects the vulnerable and those who aren't choosing to be involved in a gaming experience but are compelled by the fact that if they go to a grocery store they are confronted with gaming," said Commission Chairman Bill Curran.

Among the proposals, the Commission is considering:

Requiring gaming machines in retail businesses to be in an alcove or behind a wall or barrier separating them from the rest of the store. The specific type of wall or barrier appears open to discussion, with Curran suggesting a half-wall might be sufficient.

Requiring stores to ensure their gaming areas are not near parts of the store frequented by minors or other "vulnerable people," in Curran's words. Commissioners appear concerned about stores that place machines places they simply can't be avoided, such as near the entrance or exit.

Commissioner Augie Gurrola noted that many stores already put their machines in alcoves.

"They're adhering to the alcove before it's mandatory," said Gurrola.

But Curran noted that many other stores have machines in their entrances or exit corridors, near automatic cash machines -- a possible danger to problem gamblers -- and said he has observed gaming devices near play and child seating areas in some stores.

"There should be something so there isn't the reality or appearance that gaming is available to young people," said Curran.

Commissioners are also worried about minors coming to associate gambling with retail businesses. Commissioner Brian Sandoval recounted a recent experience fighting his way through a crowd of people attending a slot tournament at a Reno area drug store in the company of his two small children. Now, he said, when he takes his son to a store, the boy wonders if there are going to be any "hot" machines.

"I find it incomprehensible to have a slot tournament in a drug store," said Sandoval.

Nevada Retail Gaming Association President Sean Higgins said his organization does not condone slot tournaments in retail locations. Nevada Gaming Control Board Chairman Steve DuCharme said slot tournaments in retail establishments are rare, but not illegal.

Other proposed regulations include:

Banning smoking in the gaming alcoves of retail businesses. Smoking is now often allowed in the gaming area of a store, but banned in the rest of the store.

"When I ask a checker at a grocery store ... are they offended by the gaming," said Wagner, "No (they reply), they're offended by the smoking that goes on there."

Prohibiting retail businesses from advertising their gambling machines as if they are the primary activity at that establishment.

When regulators allow gambling in a retail establishment, said Curran, it is supposed to be a side activity to the main business. In the past, Curran has criticized chains that, in his words say, "I'm going to put a few bags of chips and a candy rack and now I'm a convenience store."

Some Commissioners questioned the need for any new regulations.

"I'm not sure that we need to do anything," said Wagner. "I think basically that it is a local issue."

"Nevada was born from gaming," said Gurrola. "For anybody to think that we can take the state of Nevada and have it emulate other urban areas that don't have gaming ... is just unreal."

Curran proposed "grandfather rules" that would allow any stores currently planned or operating to continue as they are. The new rules would be imposed only on new stores. He also noted that differences of opinion on the Commission might kill the proposals or change them significantly.

"We may have five different takes with regard to where we're going," said Curran.

The ultimate shape the regulations will take will become more clear after next month's Commission meeting.