Lewis Roca Blog

In the last several years, the United States has experienced a surge in the number of sexual assault victims who have publically disclosed their stories. Sexual harassment is prevalent across a broad range of industries, including Hollywood, media, hospitality and healthcare. As such, it has spurred many industries to reexamine their own policies to prevent sexual harassment. The gaming industry is no different.

In a strong response to sexual harassment concerns, on April 2, 2018, the Nevada Gaming Control Board (“NGCB”) proposed amendments to Regulation 5, including a new Regulation 5.250 that requires Nevada gaming licensees to implement comprehensive plans to address sexual harassment prevention. The proposed amendments allow the NGCB to inspect each licensee’s written policies and procedures at any time, and mandates an annual assessment of each licensee’s policies and procedures. The annual assessment would also require licensees to disclose the number of sexual harassment claims filed by employees—which could alert the NGCB to potential patterns.

On November 14, 2018, the NGCB voted to forward the proposed amendments to the Nevada Gaming Commission (the “NGC”). The NGC, which has the discretion to place amendments on its agenda for a vote, took no action on these proposed amendments. Accordingly, on October 17, 2019, the NGCB issued revised amendment language.

The 2019 draft amendments to Regulation 5 require licensed gaming establishments or other gaming businesses that have 15 or more employees to maintain written policies and procedures prohibiting workplace discrimination and harassment. The policies and procedures must address workplace discrimination or harassment committed by: (a) persons within the organization (e.g., owner, manager, employee, or independent contractor) or (b) a person outside the organization (e.g., customer, client, vendor, contractor, consultant, or other person doing business with the organization). The annual assessment from the 2018 version of amendments is no longer required of all licensees. Each licensee’s written policies and procedures regarding workplace discrimination or harassment must include: (a) the procedures and methods available to persons who wish to report an instance of discrimination or harassment, and (b) the procedures the licensee will follow when investigating a report of discrimination or harassment. Additionally, the 2019 draft grants the NGCB Chair or the Chair’s designee the power, at any time, to inspect the written policies and procedures required under the proposed updates to Regulation 5. The NGCB Chair or the Chair’s designee may also issue a determination that identifies areas of deficiency and impose a timeframe in which such deficiency must be cured. Lastly, the NGC may make its own determination regarding whether a licensee has failed to comply with a law or regulation related to workplace discrimination or harassment.

The NGC will hold a public hearing on November 21, 2019 in Las Vegas on the updated draft amendments to Regulation 5.

If you have questions regarding this case, please contact authors Karl Rutledge at krutledge@lewisroca.com, Glenn Light at glight@lewisroca.com, or Mary Tran at mtran@lewisroca.com.