Nevada § 463.750 - License required for person to operate interactive gaming or to manufacture interactive gaming systems; registration required to act as service provider; powers and duties of Commission; regulations; conditions; limitations; penalty

§ 463.750. License required for person to operate interactive gaming or to manufacture interactive gaming systems; registration required to act as service provider; powers and duties of Commission; regulations; conditions; limitations; penalty

1. The Commission shall, with the advice and assistance of the Board, adopt regulations

governing: (a) The licensing and operation of interactive gaming; and (b) The registration of service providers to perform any action described in paragraph

(b) of subsection 7 of NRS 463.677 . 2. The regulations adopted by the Commission pursuant to this section must: (a) Establish the investigation fees for: (1) A license to operate interactive gaming; (2) A license for a manufacturer of interactive gaming systems; (3) A license for an interactive gaming service provider to perform the actions described

in paragraph (a) of subsection 7 of NRS 463.677 ; and (4) Registration as a service provider to perform the actions described in paragraph

(b) of subsection 7 of NRS 463.677 . (b) Provide that: (1) A person must hold a license for a manufacturer of interactive gaming systems

to supply or provide any interactive gaming system, including, without limitation,

any piece of proprietary software or hardware; (2) A person must hold a license for an interactive gaming service provider to perform

the actions described in paragraph (a) of subsection 7 of NRS 463.677 ; and (3) A person must be registered as a service provider to perform the actions described

in paragraph (b) of subsection 7 of NRS 463.677 . (c) Except as otherwise provided in subsections 6 to 10, inclusive, set forth standards

for the suitability of a person to be: (1) Licensed as a manufacturer of interactive gaming systems; (2) Licensed as an interactive gaming service provider as described in paragraph (a)

of subsection 7 of NRS 463.677 that are as stringent as the standards for a nonrestricted license; or (3) Registered as a service provider as described in paragraph (b) of subsection 7

of NRS 463.677 that are as stringent as the standards for a nonrestricted license. (d) Set forth provisions governing: (1) The initial fee for a license for an interactive gaming service provider as described

in paragraph (a) of subsection 7 of NRS 463.677 . (2) The initial fee for registration as a service provider as described in paragraph

(b) of subsection 7 of NRS 463.677 . (3) The fee for the renewal of such a license for such an interactive gaming service

provider or registration as a service provider, as applicable, and any renewal requirements

for such a license or registration, as applicable. (4) Any portion of the license fee paid by a person licensed to operate interactive

gaming, pursuant to subsection 1 of NRS 463.770 , for which an interactive gaming service provider may be liable to the person licensed

to operate interactive gaming. (e) Provide that gross revenue received by an establishment from the operation of

interactive gaming is subject to the same license fee provisions of NRS 463.370 as the games and gaming devices of the establishment, unless federal law otherwise

provides for a similar fee or tax. (f) Set forth standards for the location and security of the computer system and for

approval of hardware and software used in connection with interactive gaming. (g) Define “interactive gaming system,” “manufacturer of interactive gaming systems,”

“operate interactive gaming” and “proprietary hardware and software” as the terms

are used in this chapter. 3. Except as otherwise provided in subsections 4 and 5, the Commission shall not approve

a license for an establishment to operate interactive gaming unless: (a) In a county whose population is 700,000 or more, the establishment is a resort

hotel that holds a nonrestricted license to operate games and gaming devices. (b) In a county whose population is 52,000 or more but less than 700,000, the establishment

is a resort hotel that holds a nonrestricted license to operate games and gaming devices

or the establishment: (1) Holds a nonrestricted license for the operation of games and gaming devices; (2) Has more than 120 rooms available for sleeping accommodations in the same county; (3) Has at least one bar with permanent seating capacity for more than 30 patrons

that serves alcoholic beverages sold by the drink for consumption on the premises; (4) Has at least one restaurant with permanent seating capacity for more than 60 patrons

that is open to the public 24 hours each day and 7 days each week; and (5) Has a gaming area that is at least 18,000 square feet in area with at least 1,600

slot machines, 40 table games, and a sports book and race pool. (c) In all other counties, the establishment is a resort hotel that holds a nonrestricted

license to operate games and gaming devices or the establishment: (1) Has held a nonrestricted license for the operation of games and gaming devices

for at least 5 years before the date of its application for a license to operate interactive

gaming; (2) Meets the definition of group 1 licensee as set forth in the regulations of the

Commission on the date of its application for a license to operate interactive gaming;

and (3) Operates either: (I) More than 50 rooms for sleeping accommodations in connection therewith; or (II) More than 50 gaming devices in connection therewith. 4. The Commission may: (a) Issue a license to operate interactive gaming to an affiliate of an establishment

if: (1) The establishment satisfies the applicable requirements set forth in subsection

3; (2) The affiliate is located in the same county as the establishment; and (3) The establishment has held a nonrestricted license for at least 5 years before

the date on which the application is filed; and (b) Require an affiliate that receives a license pursuant to this subsection to comply

with any applicable provision of this chapter. 5. The Commission may issue a license to operate interactive gaming to an applicant

that meets any qualifications established by federal law regulating the licensure

of interactive gaming. 6. Except as otherwise provided in subsections 7, 8 and 9: (a) A covered person may not be found suitable for licensure under this section within

5 years after February 21, 2013; (b) A covered person may not be found suitable for licensure under this section unless

such covered person expressly submits to the jurisdiction of the United States and

of each state in which patrons of interactive gaming operated by such covered person

after December 31, 2006, were located, and agrees to waive any statutes of limitation,

equitable remedies or laches that otherwise would preclude prosecution for a violation

of any provision of federal law or the law of any state in connection with such operation

of interactive gaming after that date; (c) A person may not be found suitable for licensure under this section within 5 years

after February 21, 2013, if such person uses a covered asset for the operation of

interactive gaming; and (d) Use of a covered asset is grounds for revocation of an interactive gaming license,

or a finding of suitability, issued under this section. 7. The Commission, upon recommendation of the Board, may waive the requirements of

subsection 6 if the Commission determines that: (a) In the case of a covered person described in paragraphs (a) and (b) of subsection

1 of NRS 463.014645 : (1) The covered person did not violate, directly or indirectly, any provision of federal

law or the law of any state in connection with the ownership and operation of, or

provision of services to, an interactive gaming facility that, after December 31,

2006, operated interactive gaming involving patrons located in the United States;

and (2) The assets to be used or that are being used by such person were not used after

that date in violation of any provision of federal law or the law of any state; (b) In the case of a covered person described in paragraph (c) of subsection 1 of NRS 463.014645 , the assets that the person will use in connection with interactive gaming for which

the covered person applies for a finding of suitability were not used after December

31, 2006, in violation of any provision of federal law or the law of any state; and (c) In the case of a covered asset, the asset was not used after December 31, 2006,

in violation of any provision of federal law or the law of any state, and the interactive

gaming facility in connection with which the asset was used was not used after that

date in violation of any provision of federal law or the law of any state. 8. With respect to a person applying for a waiver pursuant to subsection 7, the Commission

shall afford the person an opportunity to be heard and present relevant evidence. The Commission shall act as finder of fact and is entitled to evaluate the credibility

of witnesses and persuasiveness of the evidence. The affirmative votes of a majority of the whole Commission are required to grant

or deny such waiver. The Board shall make appropriate investigations to determine any facts or recommendations

that it deems necessary or proper to aid the Commission in making determinations pursuant

to this subsection and subsection 7. 9. The Commission shall make a determination pursuant to subsections 7 and 8 with

respect to a covered person or covered asset without regard to whether the conduct

of the covered person or the use of the covered asset was ever the subject of a criminal

proceeding for a violation of any provision of federal law or the law of any state,

or whether the person has been prosecuted and the prosecution terminated in a manner

other than with a conviction. 10. It is unlawful for any person, either as owner, lessee or employee, whether for

hire or not, either solely or in conjunction with others, to operate interactive gaming: (a) Until the Commission adopts regulations pursuant to this section; and (b) Unless the person first procures, and thereafter maintains in effect, all appropriate

licenses as required by the regulations adopted by the Commission pursuant to this

section. 11. A person who violates subsection 10 is guilty of a category B felony and shall

be punished by imprisonment in the state prison for a minimum term of not less than

1 year and a maximum term of not more than 10 years or by a fine of not more than

$50,000, or both.