Nevada Internet gambling bill clears committee

Tuesday, May 22, 2001 | 11:01 a.m.

CARSON CITY -- Nevada would be the first state to approve Internet gambling under a bill passed by the Senate Judiciary Committee Monday.

Still, it could be some time before casinos are accepting online bets.

Dennis Neilander, chairman of the state Gaming Control Board, said many hurdles must be cleared before any casino can venture into this new field.

Saying he did not favor limiting Internet gambling licenses to resorts in Clark County, Sen. Terry Care, D-Las Vegas, cast the lone dissenting vote on the committee. "It cuts out the entrepreneur."

Care also questioned how problem gamblers would be stopped from betting online.

Sen. Valerie Wiener, D-Las Vegas, said she would have preferred a longer study, but she still voted for Assembly Bill 578. She said she reserved the right to change her mind when it reaches the floor of the Senate.

Major casinos in Nevada have pushed this legislation in hopes of profiting by being pioneers in this industry.

But Neilander said it is the stance of the U.S. Department of Justice that the federal Wire Act prohibits Internet gambling across state lines. "Right now, until that legal issue can be overcome, I don't think anything can be done right now."

Regulations to control online betting won't be drafted by the board until it is determined whether the federal government will bar the practice. Court cases in Louisiana and Oregon center on the question of whether Internet gambling is prohibited by the federal wire act, he said.

"We will have to see how those court cases come out," he said.

If Internet gambling is found to be legal across state lines, it will be the responsibility of the board to ensure minors are not making online wagers. Neilander said the board also must take measures to ensure people are not placing wagers from states in which gambling is illegal.

"We're going to take a very cautious approach," Neilander said.

The committee also approved Assembly Bill 466, which provides for the issuance of uniform statewide work cards for gaming employees. The employee would still apply to county authorities.

The worker, however, would not have to obtain a new permit as he or she moved from casino to casino, as is now the case. The employee would merely notify authorities of job changes.

The committee voted down Assembly Bill 456 to allow the state to mint gaming tokens for casinos. The bill would have permitted the state, using the old Carson City Mint, to produce as many as 500 tokens of one design for a casino, which could issue it only to its customers.

Committee Chairman Mark James, R-Las Vegas, said the state museum, where the mint is located, was opposed to the plan. Sen. Maurice Washington, R-Sparks, was the only committee member to vote to keep the bill alive.