History is starting to repeat itself in the western United States.
Nevada become a trend-setting state in 1931 by becoming the first in all the country to legalize casino gambling. The move would wind up bringing in billions upon billions of dollars to the state, which is internationally recognized as a casino gambling Mecca.
Seventy years later Nevada's legislature is paving the way to making the state the first in the U.S. to legalize and regulate Internet casino gambling. A huge step was taken this week, but it wasn't easy.
After days of debating, the State Assembly was able to reach an agreement to give the initial green light for Internet gambling by passing an amended version of AB 578 by a vote of 37-2.
The final push commenced Wednesday when a pair of companion bills were voted on in the Assembly. The body overwhelmingly (37-2) supported AB 296, the bill making Internet gaming legal, but was unable to pass the companion bill, AB 578, which set the licensing fee structure for the industry.
In its original form, AB 578 called for an initial $1 million fee to be paid up front for every two years of operation. The bill also called for an application fee of $100,000, and those who were given a license would have to pay the 6.25 percent state gambling tax
on winnings. In addition, the bill called for slot manufacturers to pay fees of up to $250,000 for producing Internet gambling software and equipment for operators.
It was this fee structure that had many Assembly members shying away from the bill.
Many felt the bill was too restrictive with its fees and would force many smaller casinos out of the Internet business.
"It allows only large properties to play," said John Carpenter, R-Elko (a rural county in Nevada).
Assemblyman John Lee, D-Las Vegas, favors the initial structure.
"It carves out an industry that only an elite few will be able to participate in," he said. "This issue needs more study."
The stumbling block was eventually overcome, but politicians continue to play partisan games even after the bill's passage.
For the sake of compromise, both bills were combined into one single bill--AB 578. That didn’t sit well with AB 296's sponsor, Merle Bermen, who felt Democrats were trying to take credit for an idea she had.
Assembly Judiciary Chairman Bernie Anderson, D-Sparks, proposed the amended version of AB 578. Anderson, Assembly Speaker Richard Perkins and Majority Floor Leader Barbara Buckley had proposed the original version of AB 578.
Bermen made a plea for bipartisan politics while considering the bills Thursday.
"Please understand my commitment as a public servant to the people of this state overrides any party politics," she said to the Assembly on Thursday. "So allow the process to continue, and if this body chooses to use the language of my bill in another piece of legislation, then it would honor me to have my work utilized for the best interest of all Nevadans."
Off of the floor though, her comments were a little more pointed.
"I was the only one out of 63 legislators who even brought Internet gaming forward," Berman said. "It wasn’t Bernie Anderson or Richard Perkins or Barbara Buckley. It will always be my bill."
Regardless of which party takes claim to passing the bill, industry officials are excited about the potential of Nevada.
Amendments to the bill included reducing the $1 million two-year fee to $500,000. Manufacturers also will be assessed lower fees for making Internet compatible devices.
Carpenter says the amendments would please industry operators throughout the state, not just the ones in Las Vegas.
"We went through each county to make sure that each of those casinos were included," he said.
Anderson requested the revote on Wednesday, saying that both bills had to be passed for the process to continue to move forward.
"Both bills are linked," he said. "Without AB 578 we've left the question of what the Gaming Control Board does about the fees up to them. That should be set by the legislature, not the Gaming Control Board."
Despite the amended bill being passed today, Internet gambling is still a couple years away from being a reality in the Nevada.
The bill now moves to the Senate where it also is expected to pass without much opposition. The governor would then have to sign the bill into law, and even then the Gaming Control Board would have to be given time to set up the guidelines for
the industry. It could be 18 to 24 months after the bill is passed before the state issues its first online gaming license.
Wording in the bill also calls for Nevada to not regulate the industry until it's given the thumbs up by the United States Department of Justice. With a new administration in Washington, it's uncertain what the opinion is of online gaming in the federal government.
Supplemental Documents:
Bill Text (Second Reprint)
Amendment No. 512
Amendment No. 621
Roll Call:
Bernie Anderson - Yea
Sharron E. Angle - Yea
Morse Arberry Jr. - Yea
Douglas A. Bache - Yea
Bob Beers - Yea
Merle Berman - Yea
Greg Brower - No vote
David Brown - Yea
Barbara E. Buckley - Yea
John C. Carpenter - Yea
Barbara K. Cegavske - Yea
Vonne S. Chowning - Yea
Jerry D. Claborn - Yea
Tom Collins - Yea
Marcia de Braga -Yea
Joseph E. Dini, Jr. - No vote
Vivian L. Freeman - Yea
Dawn Gibbons - Yea
Chris Giunchigliani - Nay
David E. Goldwater - Yea
Don Gustavson - No vote
Lynn C. Hettrick - Yea
David E. Humke - Yea
Ellen M. Koivisto - Yea
John J. Lee - Nay
Sheila Leslie - Yea
Mark A. Manendo - Yea
John W. Marvel - Yea
Kathy McClain - Yea
Harry Mortenson - Yea
P.M. "Roy" Neighbors - Yea
Dennis Nolan - Yea
John Oceguera - Yea
Genie Ohrenschall - Yea
David R. Parks - Yea
Bonnie L. Parnell - Yea
Richard D. Perkins - Yea
Bob Price - Yea
Debbie Smith - Yea
Sandra J. Tiffany - Yea
Kathleen A. Von Tobel - Yea
Wendell P. Williams - Yea