Online gaming bill is revived

Friday, June 1, 2001 | 11:10 a.m.

CARSON CITY -- After being buried four days ago, the bill to allow Nevada casinos to conduct Internet gambling has been revived.

Casino lobbyists obtained a "resurrection waiver" from the leadership to bring Assembly Bill 578 back to life.

Lobbyist Harvey Whittemore, representing the Nevada Resort Association, said the "resurrection waiver" is a little-known device allowed after a bill has died.

The measure had stalled on the desk of the Senate last Monday, the deadline for passage in that house.

With the session closing Monday, Whittemore expressed optimism the legislation could be processed.

The measure would require the state Gaming Control Board and the state Gaming Commission to draft regulations to oversee Internet gambling.

But the Justice Department says that Internet gambling is illegal. But state regulators said they wanted to wait to see what happens to court challenges to the position of the federal government.

Before Nevada casinos are permitted to enter the world of cyberspace gaming, the Gaming Commission must be assured that minors would not be able to play the games and that it not be conducted from states that prohibit gambling.

The bill would permit "resort hotels" with unrestricted licenses to apply to conduct Internet gambling. But the resorts must put up a $500,000 fee when applying for a two-year license.

A manufacturer of an interactive gaming device would pay a $250,000 license fee; a $100,000 fee would be assessed against a manufacturer of equipment associated with a gaming device and a $50,000 fee would be charged for a license of a manufacturer of peripheral equipment.

Casinos would pay a 6 percent tax on the gross win from the Internet.

Gaming officials feel there is a huge untapped market for Internet gambling, but they acknowledge there are the legal hurdles to clear.

The Internet gambling bill would add to the casino successes this session.

The Legislature also passed a bill to permit the big casinos to have private gambling salons to draw the ultra high-rollers to Nevada.

Lawmakers also worked to get a statewide system of work cards for casino employees. And Legislature has avoided any tax on the industry.