Child-themed slot rule advances

Thursday, Jan. 6, 2000 | 10:56 a.m.

CARSON CITY -- A rule banning slot machine themes such as comic book characters that may attract juveniles will be presented to the state Gaming Commission for final approval at its Jan. 27 meeting in Las Vegas.

"This will be a model that will be followed by the rest of the country, if not the world," Commission Chairman Brian Sandoval said.

His statement came after a subcommittee workshop Wednesday on the proposed regulation to prevent slot machine manufacturers from marketing their products to minors.

Dennis Neilander, a member of the state Gaming Control Board who did the lion's share in drafting the regulation, said he did not know of any slot machines now in the casinos that couldn't meet the rule.

The casino industry and slot machine makers lined up behind the proposed regulation. Their only fear is that their ideas for themed slots might leak out to competitors during the process of state approval of their applications.

The rule prohibits a slot machine theme "that is derived from or based on a product that is currently and primarily intended or marketed for use by persons under 21 years of age..."

It also includes a section that gives the Gaming Commission more clout in keeping risque themes off of slot machines, such as having topless women on the slot reels.

At present, a casino can change the symbols on a slot machine reel without getting state approval. But after this regulation is adopted, state regulators will be looking at any switches to make sure the symbols aren't being marketed to minors.

Brooke Dunn, vice president of marketing for Shuffle Master Gaming in Las Vegas, said the consumer "likes themes like Wheel of Fortune. The same thing goes for Elvis (Presley) and the Three Stooges."

But he said, "We're going after the older adults. The younger adults don't have much money."

The regulation allows a slot machine manufacturer to submit a theme to state regulators for approval before spending millions of dollars in research and development. It says those themes that would probably not be approved would be ones based on a television or cartoon program that have been rated TV-Y, TV-Y7 or TV-G.

It would ban themes of board games suitable only for players under 21 years old or a book or magazine categorized by the Library of Congress only as juvenile literature. Themes that promote movies, videos or computer games that are marketed to children would be off-limits.

Machines now in the casinos would be "grandfathered in" under the regulation.

The manufacturer would have the opportunity to convince the state that the new theme should be approved.

To receive approval, a slot maker would apply to the state. A hearing officer would make a recommendation to the Gaming Control Board, which in turn would make a recommendation to the Gaming Commission.

It's at this juncture that the biggest concerns were expressed by the slot machine manufacturers. They want to keep these priority themes confidential until they show up with a test model on the floor of a casino. But that may run afoul of the Nevada Open Meeting law.

Mark Lerner, assistant general counsel for Alliance Gaming, said it was important to keep this propriety information confidential. "Some casinos are eager to exploit somebody's else's idea."

Dunn said any disclosure of a potential theme would open the market up to a bidding war with the person who generated the idea being able to sell to competitors.

Gaming Control Board member Bobby Siller wondered how these issues could be kept confidential in a meeting open to the public. The board and commission meetings have been traditionally open except for certain items. He wondered how questions could be asked or the issue discussed without revealing the theme. He said these manufacturers should be protected from their competitors.

Deputy Attorney General Kimberly Maxson said this issue must be discussed in public. But after a recess, she said she needed more time to research the matter and added that there "may be room for interpretation" in the Open Meeting Law to allow for a portion of the meeting to be closed.

The genesis of this regulation started a year ago, Neilander said, when some slot makers approached the board with themes from comic books. The board informally told them they would not be approved. But there was no regulation.

The board focused more on the issue after slot makers unveiled at a convention a number of slot themes such as the Munsters and the Addams Family. Nevada regulators became more concerned with Sen. John McCain, R-Ariz., and a presidential candidate, suggested Congress look into the matter.

The state moved quickly to adopt its own regulation, hoping to head off any federal rules.

Nevada, Neilander said, is in a unique position with its gaming. It permits children near gaming areas to go to restaurants or to the elevators to their hotel rooms. Other states keep children out of these areas, he said.

The regulation would permit state regulators to decide where certain machines should be placed. For instance, the Gaming Commission could stop a casino from putting a themed machine near a children's arcade, which are in many clubs.

The rule would permit the approval of a themed slot of an old movie figure like Tarzan, which is attractive to adults because of its nostalgic appeal. But if the slot machine maker used the new theme of Tarzan produced by Walt Disney, that may not get approval.