Nevada lawmakers have passed a bill in both the Senate and the Assembly that will increase the penalties for illegal gambling platforms operating in the state.
Senator Rochelle Nguyen’s SB256 was voted 42-0 in favor in the Assembly last week after passing through the Senate earlier this month. The bill will head back to the Senate for reapproval following minor amendments. After that, it will be up to Gov. Joe Lombardo to sign off on the legislation to take effect.
The bill proposes stricter penalties for platforms accepting wagers from the state’s residents without a license issued by the Nevada Gaming Control Board (NGCB).
Stronger penalties and financial consequences
Nevada online casinos have not been officially legalized, leaving players seeking out alternative platforms. Janice Wong, an intern for Nguyen, discussed the bill at a Senate committee hearing in March, stating, “SB 256 directly targets illegal online gaming operators by implementing stronger penalties and financial consequences.
“It does three key things, Wong explained. “First, this bill mandates the disgorgement of profits. Any online gaming app or operator found guilty of illegal gaming activities must forfeit all profits, gross receipts, and benefits obtained from these activities. That money will go into the state general fund.
“Second, it increases criminal penalties. The bill increases fines and turns some offenses from misdemeanors into felonies, meaning serious legal consequences for the violators.
“Third, this bill extends liability beyond state borders. Even if an illegal gaming app operates outside of Nevada, it can still be prosecuted if it takes bets from people within the state.”
Protecting Vegas interests
The Nevada Resort Association and the Vegas Chamber of Commerce have shown support for the bill as a means of protecting the state’s casinos. Nevada achieved a record $15.6 billion in gaming revenue last year, a 0.55% increase from 2023. Slots accounted for over 67% of this at $10.52 billion.
The powerful lobby of Nevada’s land-based casinos argues that online casinos could divert visitors away from physical casinos in Las Vegas and Reno, potentially harming tourism and employment.
Nevada sports betting is also tied to the casinos, with users first having to register in person before being allowed to bet online. Due to the hassle of this, many players choose to use alternative platforms where they can bet faster and with fewer identity checks.
The bill aims to make it harder for operators to continue offering players quick and easy options for online betting, but enforcement will remain a challenge for the NGCB. The regulator issued a cease-and-desist letter to Kalshi over its sports prediction markets, but the company responded by filing a lawsuit, and the Nevada courts sided with Kalshi, allowing it to continue operating in the state.
While the penalties may be increased by this legislation, the ability of the NGCB to actually collect profits from companies, or even have them cease operations is unlikely to change.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
