Gaming regulators to step up audits of big Nevada casinos

Friday, Feb. 25, 2000 | 11:14 a.m.

CARSON CITY -- The Nevada Gaming Commission Thursday approved a new regulation that will allow more frequent audits of major casinos and reduce some of the accounting burden on smaller clubs.

Dennis Neilander, a member of the state Gaming Control Board, said major casinos are audited once every three years and the goal is to reduce it to 2 1/2 years.

By changing the regulations, some of the state's audit staff will be freed up to concentrate on the big casinos, he said. Commission Chairman Brian Sandoval said, "this is another step towards more efficient regulation of the industry."

The big casinos supply 98 percent of the revenue. And the accounting procedures won't change for them.

The old regulation divided the smaller clubs into two categories -- clubs collecting between $1 million and $3 million in revenue every year and those that took in less. These two groups are being combined.

In the past, the businesses that gross between $1 million and $3 million were required to undergo a full audit. Under the changes, they will have to submit only to a revenue audit that is less burdensome. That will relieve state auditors of some of their duties.

Many of these businesses in the $1 million to $3 million category were grocery stores. Gaming officials said the current regulation "outlived its usefulness" in the changing casino picture.

The regulation becomes effective immediately.

The Thursday meeting was one of the fastest on record for the commission, lasting less than one hour. The commission also approved the following non-restricted applications: