Plan would allow horse-race wagering from outside Nevada

Monday, July 18, 2005 | 11:02 a.m.

Nevada gaming regulators have begun reviewing a new series of regulations that would enable out-of-state gamblers to bet with Nevada casinos on horse and dog races.

The provisions of the proposed Regulation 26C would allow bettors to set up a credit account in the sports books of Nevada casinos that could be accessed by telephone from states where wagering on races is permitted.

Industry experts say the new regulation would put Nevada on equal footing with 17 other states that already permit some form of account wagering.

Existing regulations already allow patrons to wager off track on races occurring in other states and simulcast in casino sports books.

The new regulation and a series of amendments to existing race and sports book rules were presented to members of the state Gaming Control Board for the first time on Wednesday.

Board Chairman Dennis Neilander said Friday that Wednesday's session was an introduction to the proposed regulations and that public comment could be permitted as soon as August's Control Board meeting. If the Control Board recommends the regulations, a similar airing before the Nevada Gaming Commission would occur before the regulations would be enacted.

A 2002 amendment to the federal Interstate Horse Racing Act of 1978 opened up account wagering nationwide and gave states the ability to allow phone-in betting.

Neilander said the Nevada Pari-Mutuel Association was a proponent of state legislation approved in 2003 permitting account wagering on horse and dog racing.

"The other states have been very successful so far," said Tony Cabot, an attorney for Lewis & Roca, who is representing the Nevada Pari-Mutuel Association. "Oregon has produced a higher (horse racing) handle than in the entire state of Nevada and California account wagering alone is now approaching Nevada numbers."

Cabot and Neilander said they have not heard of any opposition to the regulations and that there is unanimity within the industry to establish them.

While Nevada is behind other states in establishing account wagering, Cabot said being behind has some advantages.

"One of the advantages to being a second mover is that a lot of the (technological) issues have been worked out in other states," he said. "We have the advantage of their experience on those operations and are importing it."

The proposed regulation defines how bets could be placed, either directly to casino sports books or by establishing "call centers," and describing permitted phone communications between patrons and casinos. The regulation specifically bars betting via the Internet.

The regulation also outlines credit and funding reserve requirements, the development of audit trails and the maintenance of bookkeeping and accounts.

Barry Lieberman, general counsel of the Coast Hotels division of Boyd Gaming Corp., said it's unclear what the impact of allowing account wagering would be on the race and sports book industry.

Lieberman, who appeared in support of the regulation before the Control Board, said being on equal footing with competitors in other states would be a big help.

"I don't know how big it's going to be," he said. "But it's good that we'll be on equal footing with everybody else. The Gaming Control Board did a good job of getting this in compliance with the national law."