Lewis Roca Blog

Retaining a Grandfathered Gaming Location in Nevada | We have all heard the phrase location, location, location. In the context of gaming in Nevada, grandfathered locations refer to casinos or gaming establishments that have been allowed to continue operations under previous laws or regulations, even after new laws or restrictions were put in place. These locations often enjoy certain privileges that newer establishments do not.

The impact of social media is undeniable in today’s society. Whether it is utilized for personal use, maintaining family connections, or capitalizing on the latest trends, social media is interwoven into the fabric of society. These opportunities are not; however, limited only to individuals. Social media can be an invaluable marketing outlet for all businesses. It allows companies the opportunity to advertise their products and services to large audiences, connect with the public, and strengthen their brand. Of note, promotional sweepstakes are a highly effective marketing tool that companies can utilize to achieve optimal results.

Earlier this week, the Nevada Gaming Control Board (“Board”) released a notice to licensees encouraging the introduction and use of new and innovative technology into the gaming industry in Nevada. To achieve this objective, the Board released guidelines to expedite the evaluation of gaming technology, effective July 1, 2024. The guidelines do not modify or amend any regulation adopted by the Nevada Gaming Commission (“NGC”), rather they are meant to incorporate the processes the Board intends to follow within the existing parameters of the NGC regulations.

In early March 2024, the Nevada Gaming Control Board (“Board”) voted unanimously in favor of a series of proposed amendments to Gaming Regulation 5, specifically as it pertains to registered hosting centers and service providers (in particular, cloud computing service providers). These regulations were recently considered for final approval by the Nevada Gaming Commission (“Commission”) at its May 16^th meeting.

The Nevada Gaming Control Board will hold a workshop on May 23, 2024, to solicit comments on proposed amendments to Nevada Gaming Commission Regulations regarding, without limitation, Regulations 5, 7A, 8, 9, 14, 16, 22, and 28.

The Nevada Gaming Commission (“Commission”) recently amended Commission Regulation 5 to (i) allow hosting centers located outside of Nevada to house Nevada-regulated gaming equipment provided they register with the Gaming Control Board (“Board”) and satisfy certain additional criteria; and (ii) expand the scope of Nevada-regulated gaming equipment that may be housed at hosting centers.

On Thursday, November 19th, 2021, the Gaming Control Board (“Board”) held a public workshop to discuss possible amendments to the Nevada Gaming Commission regulations regarding remote registration for wagering accounts used for other than sports, nonpartimutuel race, or “other event” wagering.

On January 20, 2021, U.S. Circuit Court Judge Kayatta for the First Circuit Court of Appeals issued a 49- page ruling upholding the U.S. District Court’s ruling rejecting the 2018 Wire Act interpretation that The Wire Act applies to all forms of gambling rather than only sports betting.

Prize-linked savings (PLS) accounts are a new and exciting way for banking customers to experience the thrill of a lottery while personally funding their savings account. PLS accounts add a lottery-style feature to certain savings accounts where financial institutions offer incentives to its customers to win prizes. These prizes are funded by the interest that accrues from the pool of prize-linked accounts.

The complaint claims that Apple profits from games with loot boxes by marketing the games to children, acting as an agent for the game developers, and managing the monetary transactions. Apple does not explicitly provide notice that a loot box game feature exists and instead provides disclosures of “Offers In-App Purchases.”

Big Fish Casino is a social gaming application that provides “freemium” online casino games. Similar to many other providers, users are awarded free chips when they create their account and may obtain additional chips by winning games, via free chip replenishment, or by purchasing additional chips. Big Fish Games was owned by Churchill Downs Incorporated and subsequently sold to Aristocrat Leisure Limited earlier this year.

On April 24, 2020, the Small Business Administration (“SBA”) issued revised and updated guidelines to allow certain gaming businesses to benefit from the new Paycheck Protection Program (“PPP”) created under Title II of the CARES Act. This is a reversal of the SBA’s longstanding regulations that made most gaming businesses ineligible for any SBA loans.

With many cities following shelter-in-place orders because of the COVID-19 outbreak, many businesses have been forced to close their doors. This does not mean that businesses are left to only sit back and wait for orders to lift. Instead, businesses should consider proactive measures to connect with their community, raise brand awareness and focus on how to bring in customers once the pandemic subsides.

As social distancing and self-isolating guidelines are set in place with no immediate end in sight, many casinos are facing an uncertain future. Numerous concerts, conferences and other events held in casino convention centers have been canceled because of the coronavirus outbreak.

By June 30, 2020 apps within the Apple App Store that use HTML 5 must be in full compliance with Sections 4, 5, and 6 of Guideline 4.7 of the Apple App Store Review Guidelines. The first extension of the September 2019 deadline was extended to March 2020 and Apple’s second extension is extended to the end of June 2020. Some online gambling apps have already begun to comply with the guidelines.

As many businesses are temporarily shutting down and closing their front doors, companies are forced to reevaluate how they are interacting with customers to ensure the continuation of customer loyalty, connections, and the strength of their brands. Yet, despite this unprecedented time of social distancing, many opportunities still exist for businesses to develop and build those connections.

While most businesses have reduced operations or shut down entirely during this time of economic turmoil, some businesses are thriving. Supermarkets, pharmacies and online retailers are dominating the headlines but another industry quietly thriving is online video gaming.

In a world of shuttered casinos, restaurants and bars, many opportunities still exist for operators to develop business and build their brands through games and sweepstakes on the Internet.

Washington state legislators have introduced legislation that would amend the definition of “illegal gambling games” in current laws to exclude most video games which would prevent further litigation against game companies.

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.

On October 24, 2019, the Nevada Gaming Commission (“NGC”) voted unanimously to adopt amendments to Regulation 4A, which governs lotteries and games of chance that raise money for nonprofit organizations in the state.

A discussion regarding remote registration for Nevada sports books has been raised recently with sports betting commentators having arguments for both innovation and keeping the status quo. On the one hand, the argument is that given the numerous casinos in Las Vegas, it is not difficult to register for a sports wagering account in-person. The …

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Entertainment Software Association (ESA)’s Chief Counsel of Tech Policy, Michael Warnecke, announced at a recent Federal Trade Commission workshop examining loot boxes,[1] that the video game industry will require disclosure of the odds of winning in-game items from paid loot boxes. Microsoft, Nintendo, and Sony Interactive Entertainment have agreed to new platform policies with regard …

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The governor of New Hampshire signed sports betting legislation, HB 480, on July 12, 2019. The new law authorizes sports betting at retail locations and mobile wagering while located within the geographic boundaries of the state. If you would like to discuss this recent legislation, please contact authors Karl Rutledge at krutledge@lrrc.com, Glenn Light at …

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In light of the New Hampshire Lottery Commission Wire Act ruling issued on June 3, 2019, the Deputy Attorney General for the Department of Justice (“DOJ”) issued a new memorandum on June 12, 2019 extending the June 14, 2019 deadline for implementation of the Wire Act reinterpretation. The last extension we reported was issued on …

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On June 3, 2019, U.S. District Court Judge Paul Barbadoro issued a 60-page ruling rejecting the 2018 Wire Act Interpretation that stated the Wire Act applied to all forms of gambling rather than only sports betting. As mentioned in our prior blogs, this case was brought in New Hampshire by the New Hampshire Lottery Commission...

Language for the “The Protecting Children from Abusive Games Act” was introduced on May 23, 2019 by Senator Josh Hawley (R-Mo.), along with Senators Ed Markey (D-Mass.) and Richard Blumenthal (D-Conn.). This bill purports to ban the exploitation of children through “pay-to-win” and “loot box” monetization practices by the video game industry. The rules would …

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On April 30, 2019, Governor Larry Hogan of Maryland approved House Bill 48 titled “eSports Act.”[1] The eSports Act defines “eSports Competition” as a competition involving video games, including first-person shooters, real-time strategy games, and multiplayer online battle arenas in which: (1) players compete against each other; and (2) the dominant element determining the results...

Josh Hawley, a United States Senator from Missouri, recently announced plans to introduce a bill titled “The Protecting Children from Abusive Games Act.” The bill would, in essence, make it illegal for games “played by minors” to include loot boxes or pay-to-win microtransactions. How exactly the bill would achieve this is unclear as there is...

New Jersey Attorney General Gurbir S. Grewal filed suit on May 7, 2019 against the U.S. Department of Justice (“DOJ”) for its failure to respond to a Freedom of Information Act (“FOIA”) request filed on February 5, 2019. The request sought documents relating to Sheldon Adelson’s lobbying efforts regarding the recent DOJ interpretation of the …

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Last week the U.S. Department of Justice (DOJ) refused to rule out future prosecution of state lotteries and their employees and vendors under the 1961 Wire Act. “The potential Wire Act liability of state agencies, employees, and vendors involves the evaluation of numerous complicated and important issues, and the department intends to give these issues …

Continue reading "New Hampshire Lottery Commission and NeoPollard Interactive Respond to DOJ’s Refusal to Determine Wire Act Applicability to State Lotteries as Requested by the Court"

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The Quinault Indian Nation has filed a lawsuit against Valve Corporation in the State of Washington alleging the popular game developer engages in unregulated and unlicensed online gambling. The complaint, filed on April 3, 2019, claims the introduction of the loot box system in CS:GO “was a deliberate attempt . . . to increase its...

The United States Department of Justice (DOJ) continues to leave the gaming industry scratching their heads as it now claims the Office of Legal Counsel’s (OLC) November 2018 Opinion did not address the Wire Act’s applicability to state lotteries and their vendors. This assertion came in a memo from Deputy Attorney General Rod Rosenstein, dated...