Nevada regulators debate ban on slot advertising, cartoons

David Strow

Monday, Oct. 18, 1999 | 11:42 a.m.

The Nevada Gaming Control Board took its first look at proposed slot machine regulations Friday -- regulations that could potentially ban all cartoon characters and advertising from Nevada's machines.

Board members were quick to caution, however, that no course of action has been decided. A workshop to discuss new regulations will be held Nov. 9 in Las Vegas.

"We weren't sure this was an issue, but it is a point of concern for the board," said Board Chairman Steve DuCharme. "We may come to the conclusion that no changes are necessary."

In September, the Nevada Gaming Commission authorized the board to begin considering changes to Regulation 14, the statute dealing with gaming devices. The proposed change presented by the attorney general's office would prohibit any use of material typically associated with children, including cartoons, children's programs or books, and board games with an upper age limit of less than 21 years of age.

The other major change in the draft regulation would bar the use of any advertising on machines outside of ads promoting the property where the machine is located.

The board decided the issue needed to be examined after an "explosion" in the number of themed games presented to regulators over the past 18 months, DuCharme said.

"Six months ago, several of the concepts caused concern for the board, for theming that could appeal toward children," he said.

One of the most prominent examples was International Game Technology's "South Park" slot, based on a popular and controversial cartoon appearing on Comedy Central. IGT withdrew the game from Nevada after being told by regulators that it had little chance of approval because it would appeal to children.

Board members said a regulation could prevent similar withdrawals in the future by telling manufacturers what machines were inappropriate before they started pouring money into development.

"We really don't have a procedure in place where a manufacturer can present a concept to the board without investing a lot of time and money in R&D," said member Dennis Neilander. "We're trying to be consistent, and create predictability in the regulatory process."

On Friday, an attorney representing IGT pledged to assist the board in its search for a possible solution to a growing problem.

"IGT shares the Board's commitment to preventing underage gambling," said Bob Faiss of Lionel Sawyer & Collins. "It is, and will be, a difficult task to create the precise words that are workable ... and constitutional."

Edward Launzel, owner of New York-based firm SMARRT, said he has developed a patented process for placing company logos on slot reels in place of a jackpot symbol. He told the board he's gotten interest from a number of companies -- most notably, Miller Brewing -- and questioned the need for bans on advertising.

"We will not in any way, shape or form change the play of the game," Launzel said. "The ultimate decision on what might appear is the board's decision."

But DuCharme noted that there was no regulation in place that required a manufacturer to present advertisements before the board, and that Launzel was acting voluntarily.

"Miller Beer and Jack Daniels may be appropriate, but if we don't have the authority to review whatever appears on the reel strips, something untoward might appear," DuCharme said.

Schreck Morris' Jack Godfrey, representing the Nevada Resort Association, told the board that the powerful trade association hasn't taken a position on the new regulations.

"Our lack of comments today does not indicate a lack of interest in these proceedings," Godfrey said. "We may, at some point in the future, have some comments, but at this point, we are just monitoring."

Of the three board members, Bobby Siller was the most outspoken, saying that he was not convinced new regulations were needed. But he took the industry to task for creating a situation that made the consideration of new regulations necessary, and suggested the best solution was for the gaming industry to self-govern its designs more closely.

"This is a challenge to the core values of gaming in this state," Siller said. "I'd like us to think about this as we discuss this. If the core value truly recognizes the threat any gaming device has on children ... it doesn't reach the point where we're discussing this now.

"What will be our core value when it comes to children?"