Online gambling took another step closer to becoming a reality in Nevada Monday with the state Senate Judiciary Committee passing an amended bill that would enable Nevada casino/resorts to offer their games over the Internet.
The bill, AB 578, passed through committee with only one dissenting vote and now moves to the full Senate for passage. It has two weeks before the Senate adjourns until its next session in 2003. The Nevada legislature meets on a biennial basis and the current session ends June 4.
If the amended bill passes in the full Senate, it will then be sent back to the Assembly for another vote where it's expected to pass without any trouble. It is also anticipate that Gov. Kenny Guinn will give it his final approval.
Under the amended bill, casinos would have to pay $250,000 to be licensed to offer Internet gambling, and manufacturers engaged in the production of Internet gambling equipment would pay a $125,000 fee.
Hotel-casinos with unrestricted licenses seeking an interactive gambling license would pay a $500,000 application fee, they'd also pay a 6.25 percent tax on gross revenue, the same amount now assessed for traditional casinos.
Amendments will also enable casinos in rural areas of the state to venture into the online gaming arena.
The bill would enable the state Gaming Control Board to develop regulations governing the operation of Internet gambling sites. The sites could then be activated if they are found to comply with federal law.
Committee members were quick to point out during the session that not only will sites have to be in line with what the federal government says, but they must be safe and secure places for gamblers to visit on the Web.
"We need to have things in place if the federal government says it's legal," Senate Minority Leader Dina Titus, D-Las Vegas, said. "It's a considerable source of revenue for the state."
The Association of Gaming Manufacturers recommended a cut in fees to be paid by Internet gambling software and equipment firms from $250,000 to $125,000.
State Gaming Control Board Chairman Dennis Neilander assured the Senate Judiciary Committee that regulators would move cautiously and ensure that Nevada is in compliance with federal law.
Another amendment enables smaller establishments to get in on Internet gambling. Instead of needing 135 slots and 500 rooms, a resort with at least 50 slots and 50 rooms could apply for an Internet gambling license.
Sen. Mike McGinness, R-Fallon, told the Associated Press after the vote that including operators outside Las Vegas was a good move for the legislature.
"This way, a lot of different establishments in Nevada will be able to get into it," he said. "Folks in rural Nevada are just as entrepreneurial as others, and it's not like we're giving them something without strings attached."
Sen. Terry Care, D-Las Vegas, opposes the bill and wishes the Senate had more time to study the issue. He warns that the state may be rushing into something without being prepared.
"Unfortunately we have only 120 days and can't do this subject justice," he told the AP. "My preference is to allow authorities to make regulations and during the next legislative session we can look at policy."
During the committee hearing, Chairman Mark James, R-Las Vegas, pointed out that Nevada should continue to be a world leader when it comes to gaming, but the right steps need to be taken.
"It is important for Nevada to get control of this issue early," he said. "If we don't, we will face two problems. First, Nevada will miss the boat in terms of Internet gaming. Second, it would be a disservice to the public throughout the world."
James says that Nevada, with its standard of above-board gaming that is fair to players, must be ready to compete with the unregulated and questionable Internet gaming sites that are ready to ramp up once the practice is made legal.
During hearings, state regulators said that about 18 months would pass before regulations are completed and licensing of Internet casinos begins.