Lawmakers adding amendments to ‘Net gambling bill

Erin Neff

Wednesday, May 16, 2001 | 10:19 a.m.

CARSON CITY -- As another legislative deadline approaches, the one remaining gaming bill is about to be adorned with a wish list of items.

Once simply a housekeeping bill for the Gaming Control Board, Assembly Bill 578 was amended when it passed the Assembly to include a previous bill that enabled regulators to establish Internet gaming.

Now in the Senate Judiciary Committee, the Internet gaming portion of the bill is being tweaked, and other amendments are being requested.

After a lengthy hearing Tuesday, the bill was sent to a work session with representatives of casinos, slot manufacturers and even lawmakers requesting changes.

Sen. Mark James, R-Las Vegas, who chairs the committee, focused the bulk of his remarks on the Internet gaming provisions, which he warned needed to be a part of policy decisions by legislators.

The bill enables regulators to establish interactive gaming as long as it is proven secure and legal. If that occurred, hotel-casinos with unrestricted licenses would be allowed to apply for an interactive gaming license, subject to a $500,000 application fee and a 6.25 percent tax on gross revenue.

"We're trying to have the law be ahead of the technology," James told Gaming Control Board Chairman Dennis Neilander. "We're telling you to go satisfy yourself that there isn't going to be a problem.

"You have to proceed with the utmost of caution," he said. "We're taking a leap of faith and I, personally, don't want to get burned on that leap of faith."

Nevada Gaming Commission Chairman Brian Sandoval assured the committee that regulators will move cautiously and will meet with U.S. Justice Department officials to ensure that anything Nevada undertakes is lawful.

"We don't want to put our licensees at risk," Sandoval said.

Sen. Jon Porter, R-Henderson, said he worried that the unwieldy Internet market is driving decision-makers.

"I would hate to see us rush to judgment," Porter said.

Among the many amendments proposed to the bill is a measure -- presented by the Association of Gaming Manufacturers -- that would reduce the license fee for gaming manufacturers from $250,000 to $75,000.

Another amendment would allow the Longstreet Hotel-Casino in Nye County to enter into Internet gaming.

Wall Street analysts have suggested Internet gaming revenue could hit $5 billion worldwide in the next three years -- an estimate that causes Nevada casino owners to drool.

"What will it do in the long term?" asked Senate Minority Leader Dina Titus, D-Las Vegas. "If people get comfortable gambling at home does that mean they won't come to Las Vegas?"

Danny Wade, vice chairman of MGM MIRAGE, said that as the state's largest employer his company would not risk undertaking an unprofitable venture.

"It's a tool that we will use to improve more visitation to Nevada," Wade said.

Harvey Whittemore, a lobbyist representing the Nevada Resort Association, presented an unrelated amendment dealing with labor unions in casinos. Porter suggested an amendment concerning bets on fixed sporting events, and James suggested an amendment related to the suitability of landlords in businesses that have slot machines.

"My bill has everything in it but the kitchen sink," Neilander said.

The committee has until Friday to pass the bill on to the full Senate.

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