Media reports of the Nevada Gaming Control Board granting a license for a system that would open the door for desktop sports betting are exaggerated, according to officials with the company holding the license.
The Associated Press reported this week that the Gaming Control Board has issued a license to Virtgame Corp for a system that facilitates sports betting via personal computers. In principle, that leaves approval from the Gaming Commission as the final step before launching.
In reality, though, all the Control Board did was recommend Virtgame for a limited license through next April, at which time Virtgame will face another regulatory review. The recommendation also called for an updated business plan after raising questions about the company's finances and previous dealings.
Virtgame is developing an intranet system that would enable Nevada residents to place bets on sporting events and horse races 24 hours a day.
Before playing, customers would have to fund their accounts at land-based sports books, where they'd be issued usernames and passwords enabling them to access a closed-loop betting system from their personal computers. Bettors would also have to return to the land-based facility to claim their winnings.
Gaming Control Board Chairman Dennis Neilander emphasized that Virtgame's system is not an Internet platform; he called it "an extension of telephone wagering using modems and a PC."
The recommendations from the Control Board are the first steps in Virtgame's effort to gain an unrestricted license as a vendor and supplier to gambling operators in Nevada.
The company already holds a restricted license in the state, but industry insiders have speculated that the company is looking to gain an unrestricted license so it can broaden its base for the sports betting platform.
Any system the company comes forward with, though, will have to gain separate approval by gaming regulators, over and above any license that the company and its principals are granted.
The Nevada Gaming Commission will discuss the Virtgame system at its next scheduled meeting on , slated for Oct. 24, and is expected to grant final approval of the limited license.
Virtgame officials wouldn't speculate on any timetable for advancing an intrastate sports betting system. Such a move could happen prior to the evaluation deadline in April, or the company could bide its time and wait until it gets full approval in the spring of 2003.