Assembly Bill No. 294

Assembly Bill No. 294-Committee on Judiciary

CHAPTER

296

AN ACT relating to gaming; authorizing the state gaming control board to require a licensee who has an actual activity or association in a foreign gaming operation or intends to engage in such an activity or association to file an application for a finding of suitability; prohibiting a gaming licensee from associating with certain persons; and providing other matters properly relating thereto.

[Approved July 5, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

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Section 1. Chapter 463 of NRS is hereby amended by adding thereto a new section to read as follows:
1. If the board determines that an actual or intended activity or association of a licensee in a foreign gaming operation may be prohibited pursuant to subsection 3 of NRS 463.720, the board may require the licensee to file an application for a finding of suitability to be made by the commission concerning the activity or association. Except as otherwise provided in subsection 2, the licensee shall file the application for a finding of suitability within 30 days after receiving the request from the board unless the chairman of the board grants an extension of time.
2. In lieu of filing an application for a finding of suitability pursuant to subsection 1, a licensee may, within 30 days after receiving a request from the board pursuant to subsection 1, petition the commission to review the request and determine whether the licensee is required to file the application.
3. A licensee may, without a request from the board, file an application for a finding of suitability concerning his actual or intended activity or association in a foreign gaming operation.
4. If the commission finds that:
(a) An intended activity or association of a licensee in a foreign gaming operation is unsuitable pursuant to subsection 3 of NRS 463.720, the licensee shall not engage in the activity or enter into the association.
(b) An activity or association of a licensee in a foreign gaming operation is prohibited pursuant to subsection 3 of NRS 463.720, the licensee shall terminate the activity or association within the time prescribed by the commission.
5. An application for a finding of suitability filed pursuant to this section is subject to the same procedures and standards as any other application for a finding of suitability filed pursuant to this chapter.
Sec. 2. NRS 463.680 is hereby amended to read as follows:
463.680 For the purposes of NRS 463.700 to 463.720, inclusive [:] , and section 1 of this act:
1. "Foreign gaming" means the conduct of gaming outside this state.
2. "Licensee" means a person who:
(a) Is licensed or required to be licensed pursuant to NRS 463.160, 463.162, 463.167 or 463.650;
(b) Is or is required to be licensed, registered or found suitable pursuant to NRS 463.482 to 463.645, inclusive; or
(c) Directly or through one or more intermediaries controls, is controlled by or is under common control with a person described in paragraph (a) or (b).
Sec. 3. NRS 463.710 is hereby amended to read as follows:
463.710 Unless otherwise ordered by the board or commission, a licensee who participates in foreign gaming shall file with the board:
1. As soon as participation in foreign gaming begins:
(a) All documents filed by him or by an affiliate with the foreign jurisdiction; and
(b) The systems of accounting and internal control utilized in the foreign gaming operation and any amendments to the systems as soon as made.
2. Annual operational and regulatory reports describing compliance with regulations, procedures for audit, and procedures for surveillance relating to the foreign gaming operation.
3. Quarterly reports regarding any of the following information which is within the knowledge of the licensee:
(a) Any changes in ownership or control of any interest in the foreign gaming operation;
(b) Any changes in officers, directors or key employees of the foreign gaming operation;
(c) All complaints, disputes, orders to show cause and disciplinary actions, related to gaming, instituted or presided over by an entity of the United States, a state or any other governmental jurisdiction concerning the foreign gaming operation;
(d) Any arrest of an employee of the foreign gaming operation involving cheating or theft, related to gaming, in the foreign jurisdiction; and
(e) Any arrest or conviction of an officer, director, key employee or owner of equity in the foreign gaming operation for an offense that would constitute a gross misdemeanor or felony in this state.
4. Such other information as the commission requires by regulation.
Sec. 4. NRS 463.720 is hereby amended to read as follows:
463.720 A licensee shall not, in a foreign gaming operation, knowingly:
1. Violate [any] a foreign, federal, tribal, state, county, city or township law, regulation, ordinance or rule, or any equivalent thereof, concerning the conduct of gaming;
2. Fail to conduct the operation in accordance with the standards of honesty and integrity required for gaming in this state;
3. Engage in [any activity that:] an activity or enter into an association that is unsuitable for a licensee because it:
(a) Poses [any] an unreasonable threat to the control of gaming in this state;
(b) Reflects or tends to reflect discredit or disrepute upon this state or gaming in this state; or
(c) Is contrary to the public policy of this state concerning gaming;
4. Engage in [any] an activity or enter into an association that interferes with the ability of this state to collect all license fees imposed by this chapter; or
5. Employ , [or] contract with or associate with [any] a person whom the commission or [any] a court in this state has found guilty of cheating or to whom the commission has denied a gaming license, or finding of suitability, on the ground of unsuitability.
Sec. 5. This act becomes effective upon passage and approval.
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