Internet gambling bill clears key hurdle

Erin Neff

Monday, April 9, 2001 | 11:17 a.m.

CARSON CITY -- A bill to legalize Internet gaming in Nevada has overcome its toughest obstacle.

A last-minute objection from slot-machine manufacturers March 31 postponed the passage of Assembly Bill 296. But the deadline for the manufacturers to offer amendments passed quietly last week without a peep from them.

"The manufacturers no longer object to any part of this," said Bernie Anderson, D-Sparks, chairman of the Assembly's Judiciary Committee, which is hearing testimony on the bill.

Now AB296, sponsored by Assemblywoman Merle Berman, R-Las Vegas, will head into a work session Tuesday that could result in its passage from Anderson's committee. From there it likely faces clear sailing through the rest of the legislative process.

The bill would allow the state's Gaming Commission and Gaming Control Board to license hotel-casinos that want to launch Internet gaming sites.

If the measure passes this legislative session and is signed by Gov. Kenny Guinn, it will be the first such law in the nation.

"There are still some concerns about stepping forward into this new area," Anderson said. "This could be a very dramatic step for this state."

Berman's bill has the kind of support that gets anything in Carson City passed into law. Gaming is squarely behind it as a way to broaden customer bases and the branding of corporate names.

Only resort hotels with nonrestrictive gaming licenses will be allowed to offer gaming over the Internet.

On Tuesday two amendments will be offered. One will change the definition of resort hotel-casinos to enable hotel-casinos in counties other than Clark and Washoe to have Internet gaming sites. The original definition would have limited resorts to those two urban counties.

The other amendment is offered by the Gaming Control Board to clarify its role in formulating any licensing plan for Internet operations. The bill does not mandate that state regulators license such endeavors, it merely gives them the ability to do so when they are ready.

During the March 31 hearing on the bill, Sam McMullen, a lobbyist for the Association of Gaming Equipment Managers, expressed concern about whether slot manufactures were being excluded from a potentially lucrative business.

However, no amendment was offered, those close to the bill say, because slot manufacturers such as International Game Technology Inc. are discussing possible ties with casinos to have some of their noted games offered on the Internet.

Berman said she is confident the bill can now pass committee, and ultimately reach the governor.

Tuesday's Judiciary Committee meeting begins at 8 a.m. After testimony on several bills, the committee will enter its work session. The meeting will be televised in Las Vegas in Room 4412 of the Sawyer State Office Building, 555 E. Washington Ave.