The Nevada Gaming Control Board (NGCB) is a government agency that oversees the gaming industry in the state of Nevada. The NGCB was established in 1959 to enforce regulations and investigate violations related to gaming in the state. Some key facts about the Nevada Gaming Control Board:
Overview
The Nevada Gaming Control Board is responsible for ensuring the integrity and stability of Nevada’s gaming industry. The NGCB oversees all gaming activities in the state, including the operations of casinos, gaming devices, and sports betting. The Board’s primary functions include:
- Issuing, renewing, conditioning, suspending, and revoking gaming licenses for individuals, businesses, and establishments
- Investigating applicants and licensees to determine suitability for licensure
- Ensuring gaming licensees comply with laws and regulations through audits and investigations
- Approving and testing new gaming devices, equipment, and software
- Establishing minimum internal control standards for licensees
- Collecting gaming taxes, fees, and penalties
- Developing regulations governing the gaming industry in Nevada
The NGCB operates under the Nevada Gaming Commission, which acts as the policy-making and judicial body. The Commission has final approval on gaming licenses and can levy disciplinary actions against licensees.
History
Nevada legalized gambling in 1931. For many years, there was little regulation of the state’s gaming industry. However, as the Mob became increasingly involved in casino operations, public concern grew over potential criminal activity and exploitation.
In 1955, the Nevada Tax Commission launched a major investigation that uncovered extensive corruption at multiple casinos. This prompted the state legislature to take action to better control the industry. The Nevada Gaming Control Act was passed in 1959, establishing the Gaming Control Board as an independent agency.
The Board was tasked with licensing and overseeing all gaming operations in Nevada. Regulations were enacted to ensure the honesty and integrity of gaming establishments. Since its inception, the NGCB has been pivotal in transforming Nevada’s gaming industry into a legitimate and respected enterprise.
Organization and Members
The Nevada Gaming Control Board consists of three full-time members. Members are appointed by the Nevada Governor and must be confirmed by the state Senate. By law, Board members cannot have any ties to the casino industry.
There are currently three members of the Nevada Gaming Control Board:
- Chairman: John T. Moran Jr.
- Member: Rosa Solis-Rainey
- Member: Steven Cohen
The Board has over 500 employees organized into various divisions and units. Key divisions include Investigation, Audit, Tax and License, Enforcement, and Technology. The Board also operates field offices across Nevada.
Regulatory Responsibilities and Powers
The Nevada Gaming Control Board has comprehensive regulatory authority over Nevada’s gaming industry. The Board’s regulatory responsibilities and powers include:
- Conducting background investigations into gaming license applicants
- Determining suitability of gaming license applicants
- Issuing, revoking, suspending, and conditioning gaming licenses
- Investigating violations of gaming laws and regulations
- Filing complaints and imposing disciplinary actions against licensees
- Establishing minimum standards for gaming establishments
- Reviewing and approving all new gaming equipment and technology
- Approving all gaming chips, tokens, cards, and dice
- Overseeing manufacture, distribution, and destruction of gaming supplies
- Establishing minimum internal control procedures for licensees
- Auditing financial practices of gaming establishments
- Collecting fees, taxes, and penalties from licensees
The NGCB has the power to conduct investigations, issue subpoenas, compel testimony, and require production of evidence as needed to enforce gaming regulations. The Board can issue fines and disciplinary actions against licensees who fail to comply with gaming laws.
Gaming License Approval Process
One of the NGCB’s main functions is vetting applicants and approving gaming licenses. Obtaining a Nevada gaming license is an extensive process that includes:
- Submitting an application and paying required fee
- Undergoing a thorough background investigation
- Disclosing detailed personal, financial, and criminal information
- Releasing tax returns, bank records, and business documents
- Providing fingerprints for an FBI criminal records check
- Attending multiple interviews with NGCB investigators
- Establishing suitability for gaming license
- Gaining recommendation for approval from NGCB staff
- Obtaining final license approval from the Nevada Gaming Commission
The application process is labor intensive and can take 12 months or longer. Applicants must demonstrate high integrity and financial stability to meet suitability requirements. Even the slightest concern could lead the NGCB to deny a gaming license application.
Oversight of Gaming Operations
The Nevada Gaming Control Board oversees all aspects of gaming operations within the state. Key regulatory responsibilities include:
- Inspecting casino premises and gaming equipment
- Testing new gaming devices and systems before they can be used
- Approving the themes and payouts of slot machines
- Establishing minimum bankroll requirements for casinos
- Reviewing and approving casino internal controls
- Monitoring casino accounting and financial practices
- Verifying the integrity of gambling games
- Investigating complaints of cheating or misconduct
- Auditing jackpot payout processes and tax liabilities
- Overseeing collection of gaming debts and markers from patrons
NGCB agents conduct regular inspections of casinos to enforce regulations and standards. Operators must address any deficiencies or violations identified. The Board also investigates any patron disputes over winnings, losses, or unpaid debts.
Gaming Taxes and Revenue
The Nevada Gaming Control Board oversees the collection of gaming license fees and taxes that provide substantial revenue to the state. Key revenue sources include:
- Gaming establishment license fees
- Annual slot machine taxes
- Fees on live entertainment and gaming revenue
- Quarterly non-restricted gaming license fees based on gross revenue
- Fines and penalties for violations
In Fiscal Year 2022, the NGCB collected over $870 million in gaming taxes and license fees. Casino gaming taxes represent the state’s second largest source of revenue after sales tax.
Nevada Gaming Tax Revenue
| Tax/Fee Type | FY 2022 Revenue |
|---|---|
| Gaming Percentage Fee (GPR) | $764 million |
| Annual Slot Tax | $72 million |
| Live Entertainment Tax | $25 million |
| License Fees | $10 million |
| Total Gaming Tax Revenue | $871 million |
Nevada’s gambling taxes and fees account for over 15% of the state’s total General Fund revenue.
Oversight of Sports Betting
The Nevada Gaming Control Board has regulated sports betting in Nevada for decades. However, after the U.S. Supreme Court overturned PASPA in 2018, the Board’s oversight role expanded significantly.
Nevada gaming laws allow wagering on professional, amateur, Olympic, and collegiate sports events. Operators must apply for approval from the NGCB before accepting bets on any athletic event.
The Board enforces strict regulations meant to ensure the integrity of sports betting in Nevada. These include:
- Reviewing and approving all proposed wagers
- Setting betting limits on amateur events
- Prohibiting wagers from insiders or athletes
- Requiring licensees to immediately report any suspicious betting
- Mandating licensees use approved data feeds and information sources
- Allowing the NGCB to require hand-counting of tickets for any event
Licensees that violate Nevada’s sports betting provisions face stiff fines and disciplinary action, including potential license suspension or revocation.
Key Regulations and Policies
The Nevada Gaming Commission establishes gaming regulations and policies. The Gaming Control Board then enforces these rules and regulations. Some of the key NGCB regulations include:
- Gaming Device Testing: All gaming devices like slot machines and automatic shufflers must undergo extensive testing and certification by the NGCB before casinos can deploy them on their floors.
- Underage Gaming: Those under age 21 are strictly prohibited from gambling in Nevada casinos. Casinos face heavy penalties for allowing minors to gamble.
- Self-Exclusion: The Board operates a voluntary self-exclusion program that allows problem gamblers to ban themselves from casinos.
- Anti-Money Laundering: Casinos must file currency reports on large transactions and report any suspicious activity to comply with anti-money laundering laws.
- Work Permits: Gaming employees in sensitive positions must obtain work permits issued by the NGCB, which includes passing background checks.
- Cheating: Using any unauthorized device, technique, or deception to gain advantage in a casino game is considered cheating under Nevada law.
Violating NGCB gaming regulations can result in disciplinary action against the offender’s gaming license. Nevada gaming laws and regulations are designed primarily to protect consumers and the integrity of gaming.
Enforcement Actions
When licensees violate gaming regulations, the Nevada Gaming Control Board can take enforcement actions:
- Fines: The NGCB can issue fines starting at $1,000 for minor violations up to $250,000 for serious offenses.
- Suspension or Revocation: Serious or repeated violations can lead to suspension or revocation of a gaming license.
- Orders to Show Cause: The Board can issue an order requiring an individual appear before the Board to explain why they should maintain a license.
- Conditional Licensing: The NGCB can place conditions or restrictions on gaming licenses.
- Summary Suspension: If urgent action is required, the Board can immediately suspend a license pending further disciplinary proceedings.
In 2020, the NGCB took 144 enforcement actions, including 92 fines totaling over $724,000. The Board aims to use enforcement measures both as a deterrent and corrective action to protect gaming industry integrity.
Notable Recent Actions
Here are some notable recent enforcement actions taken by the Nevada Gaming Control Board:
- In 2019, the NGCB fined Wynn Resorts $20 million for failure to investigate sexual misconduct claims against Steve Wynn, former CEO.
- In 2020, the Board fined Las Vegas Sands $25,000 for meeting rooms rented by Sands being used for illegal gambling.
- In 2021, the NGCB fined betMGM $150,000 for accepting electronic sports bets from individuals on a self-exclusion list.
- In 2022, the Board fined Sahara casino $75,000 for inadvertently exposing player credit card numbers.
These and other actions demonstrate the Board’scommitment to strictly enforcing gaming regulations in Nevada.
Gaming Control Boards in Other States
As of 2023, 45 states have legalized some form of casino gambling. Here are some examples of state regulatory agencies modeled on the Nevada Gaming Control Board:
- New Jersey Casino Control Commission – Oversees Atlantic City casinos and gambling in New Jersey.
- Pennsylvania Gaming Control Board – Regulates the state’s gaming industry, including slots parlors and online betting.
- Louisiana Gaming Control Board – Regulates the Louisiana gaming industry and collects license fees and taxes.
- Mississippi Gaming Commission – Licenses and regulates the state’s commercial casinos and charity gambling.
These agencies all perform similar regulatory functions as the NGCB, but are limited to gaming within their own state borders.
Conclusion
For over 60 years, the Nevada Gaming Control Board has strictly and effectively regulated gaming in the state. With its sweeping investigatory powers and regulatory authority, the NGCB plays a vital role in maintaining Nevada’s gaming industry as transparent, legitimate, and compliant.
The Board’s oversight instills confidence that gaming in Nevada is conducted honestly, competitively, and free of criminal elements. Thanks to the NGCB’s oversight, Nevada continues to lead the nation and world as a trusted gaming destination.