Nevada Senate eyeing wireless gaming

Thursday, May 26, 2005 | 10:46 a.m.

State lawmakers are close to approving legislation that would approve some forms of wireless gaming -- but only in casinos, and only if regulators write rules allowing handheld betting.

And experts say it would be quite some time, at least a year, before gamblers would be able to use a cell phone or handheld digital device to place a wager in a casino.

The Nevada Senate was scheduled today to consider a bill that would allow gamblers to use such devices to place bets while sitting at poolside, in lounges or in restaurants within a casino. The bill, unanimously approved by the Assembly and expected to be signed by the governor, originally was set to be voted on Wednesday.

But approval of the concept only opens the door for regulators to begin testing systems and develop policies. Experts in the industry say that could take a minimum of a year to review.

Assembly Bill 471 defines "mobile gaming" as conducting gambling games through communications devices operated solely in public areas of an establishment which holds a nonrestricted gaming license and which operates at least 100 slot machines.

Under plans outlined for regulators, casinos would likely distribute PDAs, cellular phones or other devices to gamblers who wanted to use them. They couldn't legally be used in hotel rooms or in places where minors could operate them.

State Gaming Control Board member Mark Clayton said today that mobile gaming would only occur after the commission writes rules governing it after finding that mobile systems are secure and reliable.

He said the board's electronic services laboratory would review and test technology, just as it scrutinizes new games and other technology that is introduced into casino settings.

One expert noted that requiring the devices to be used in the state's casinos limited the appeal of the measure.

"The fact that you have to actually go into a casino and take out a device to do it kind of negates the value," said Julie Ask, an analyst with technology research firm Jupiter Research.

Even so, Ask said, Nevada's experiment could serve as a platform for companies to begin figuring out how do offer wireless wagering on a wider scale.

Whether or not that ever happens depends more on the U.S. government relaxing gambling laws than on technology.

Jupiter Research has predicted that mobile gambling could be a $16 billion business worldwide by 2009. None of that would be in the United States, however, because of U.S. gambling laws.

Companies that make software and equipment for mobile gambling applauded the Nevada move, betting that it will be a boon to their business.

"If it is approved as expected, this will be a great milestone for this industry as it will add legitimacy and credibility," Ken Chua, president of Chimera Technology Corp., said in a statement. The Las Vegas company plans to introduce a new wireless gambling system in July.

Another company, Diamond I Inc. of Baton Rouge, La., claims it is negotiating with several Las Vegas casinos to roll out its "Wi-Fi Casino GS" system as soon as the Nevada legislation becomes law.