Senate Bill No. 318

Senate Bill No. 318-Committee on Judiciary

CHAPTER

662

AN ACT relating to gaming; making various changes concerning the use of televised broadcasts; authorizing the state gaming control board to permit an establishment to relocate and transfer its license to a new location in certain circumstances; providing that certain information relating to applicants and licensees is confidential; prohibiting certain acts relating to wagering; revising certain provisions relating to off-track pari-mutuel wagering; providing penalties; and providing other matters properly relating thereto.

[Approved July 17, 1997]

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

Section 1. Chapter 463 of NRS is hereby amended by adding thereto the provisions set forth as sections 2, 2.5 and 3 of this act.
Sec. 2. "Televised broadcast" means an audio and video transmission of a race, or series of races, as it occurs at a track that is broadcast by a television broadcast station or transmitted by a cable television system or a satellite television distribution service.
Sec. 2.5. An operator of a race book licensed in this state may use a televised broadcast to maintain and operate the race book, including, without limitation, the determination of and payoffs on wagers.
Sec. 3. 1. Notwithstanding any other provision of law and except as otherwise provided in this section, the board may, in its sole and absolute discretion, allow a licensee to move the location of its establishment and transfer its restricted or nonrestricted license to:
(a) A location within a redevelopment zone, if the redevelopment zone is located in the same local governmental jurisdiction as the existing location of the establishment; or
(b) Any other location, if the move and transfer are necessary because the existing location of the establishment has been taken by the state or a local government through condemnation or eminent domain.
2. The board shall not approve a move and transfer pursuant to subsection 1 unless, before the move and transfer, the licensee receives all necessary approvals from the local government having jurisdiction over the location to which the establishment wants to move and transfer its license.
3. Before a move and transfer pursuant to subsection 1, the board may require the licensee to apply for a new license pursuant to the provisions of this chapter.
4. The provisions of subsection 1 do not apply to an establishment that is:
(a) A resort hotel; or
(b) Located in a city which has established one or more gaming enterprise districts.
Sec. 3.3. NRS 463.013 is hereby amended to read as follows:
463.013As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 463.0133 to 463.0197, inclusive, and section 2 of this act have the meanings ascribed to them in those sections.
Sec. 3.7. NRS 463.0147 is hereby amended to read as follows:
463.0147"Disseminator" means any person who furnishes an operator of a race book [, sports pool or gambling game] who is licensed in this state with information relating to horse racing or other racing which is used to determine winners of or payoffs on wagers accepted by the operator. The term does not include a [person who provides a] television broadcast station, or operator of a cable television system or satellite distribution service that provides a televised broadcast . [without charge to any person who receives the broadcast.]
Sec. 4. NRS 463.120 is hereby amended to read as follows:
463.120 1. The board and the commission shall cause to be made and kept a record of all proceedings at regular and special meetings of the board and the commission. These records are open to public inspection.
2. The board shall maintain a file of all applications for licenses under this chapter and chapter 466 of NRS, together with a record of all action taken with respect to those applications. The file and record are open to public inspection.
3. The board and the commission may maintain such other files and records as they may deem desirable.
4. Except as otherwise provided in this subsection and subsection 5, all information and data:
(a) Required by the board or commission to be furnished to it under this chapter or which may be otherwise obtained relative to the finances, earnings or revenue of any applicant or licensee;
(b) Pertaining to an applicant's criminal record, antecedents and background which have been furnished to or obtained by the board or commission from any source;
(c) Provided to the members, agents or employees of the board or commission by a governmental agency or an informer or on the assurance that the information will be held in confidence and treated as confidential; [or]
(d) Obtained by the board from a manufacturer, distributor or operator relating to the manufacturing of gaming devices [,] ; or
(e) Prepared or obtained by an agent or employee of the board or commission relating to an application for a license, a finding of suitability or any approval that is required pursuant to the provisions of this chapter,
are confidential and may be revealed in whole or in part only in the course of the necessary administration of this chapter or upon the lawful order of a court of competent jurisdiction. The board and commission may reveal such information and data to an authorized agent of any agency of the United States Government, any state or any political subdivision of a state or the government of any foreign country. Notwithstanding any other provision of state law, such information may not be otherwise revealed without specific authorization by the board or commission.
5. Before the beginning of each legislative session, the board shall submit to the legislative commission for its review and for the use of the legislature a report on the gross revenue, net revenue and average depreciation of all licensees, categorized by class of licensee and geographical area and the assessed valuation of the property of all licensees, by category, as listed on the assessment rolls.
6. Notice of the content of any information or data furnished or released pursuant to subsection 4 may be given to any applicant or licensee in a manner prescribed by regulations adopted by the commission.
7. The files, records and reports of the board are open at all times to inspection by the commission and its authorized agents.
8. All files, records, reports and other information pertaining to gaming matters in the possession of the Nevada tax commission must be made available to the board and the Nevada gaming commission as is necessary to the administration of this chapter.
9. The Nevada gaming commission, by the affirmative vote of a majority of its members, may remove from its records the name of a debtor and the amount of tax, penalty and interest, or any of them, owed by him, if after 5 years it remains impossible or impracticable to collect such amounts. The commission shall establish a master file containing the information removed from its official records by this section.
Sec. 5. NRS 463.240 is hereby amended to read as follows:
463.240 1. No county, [incorporated] city or town [, or unincorporated town] may grant a [license for] gaming license to any applicant unless the applicant holds a valid state gaming license issued by the commission , [;] but the issuance by the commission of the state gaming license imposes no requirements upon any such county, city or town to issue a [gambling] gaming license to the applicant.
2. Any information that is supplied to a county, city or town by an applicant or a licensee shall be deemed to be confidential if the information is confidential pursuant to NRS 463.120.
Sec. 5.5. NRS 463.430 is hereby amended to read as follows:
463.4301. [It] Except as otherwise provided in subsection 2, it is unlawful for any person in this state to receive, supply or disseminate in this state by any means information received from any source outside of this state concerning racing, when the information is to be used to maintain and operate any gambling game and particularly any race book, except off-track pari-mutuel wagering for which the user is licensed pursuant to chapter 464 of NRS, without first having obtained a license so to do as provided in NRS 463.430 to 463.480, inclusive.
2. The provisions of this section do not apply to:
(a) Any person who provides a televised broadcast which is presented without charge to any person who receives the broadcast.
(b) Any licensee who has been issued a gaming license and receives from or supplies to any affiliated licensee, by means of a computerized system for bookmaking used by the licensee and the affiliated licensee, information concerning racing.
(c) An operator of a race book licensed in this state that uses a televised broadcast to maintain and operate the race book, including, without limitation, the determination of or payoffs on wagers.
3. For the purposes of this section:
(a) Any broadcasting or display of information concerning racing held at a track which uses the pari-mutuel system of wagering is an incident of maintaining and operating a race book.
(b) "Affiliated licensee" means any person to whom a valid gaming license or pari-mutuel wagering license has been issued that directly, or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, a licensee.
Sec. 6. Chapter 464 of NRS is hereby amended by adding thereto a new section to read as follows:
1. A person who is licensed to engage in off-track pari-mutuel wagering shall not:
(a) Accept from a patron less than the full face value of an off-track pari-mutuel wager;
(b) Agree to refund or rebate to a patron any portion or percentage of the full face value of an off-track pari-mutuel wager; or
(c) Increase the payoff of, or pay a bonus on, a winning off-track pari-mutuel wager.
2. A person who is licensed to engage in off-track pari-mutuel wagering and who:
(a) Attempts to evade the provisions of subsection 1 by offering to a patron a wager that is not posted and offered to all patrons; or
(b) Otherwise violates the provisions of subsection 1,
is subject to the investigatory and disciplinary proceedings that are set forth in NRS 463.310 to 463.318, inclusive, and shall be punished as provided in those sections.
3. The Nevada gaming commission shall adopt regulations to carry out the provisions of this section.
Sec. 7. NRS 464.020 is hereby amended to read as follows:
464.020 1. The Nevada gaming commission is charged with the administration of this chapter for the protection of the public and in the public interest.
2. The Nevada gaming commission may issue licenses permitting the conduct of the pari-mutuel system of wagering, including off-track pari-mutuel wagering, and may adopt, amend and repeal regulations relating to the conduct of such wagering.
3. The wagering must be conducted only by the licensee at the times determined by the Nevada gaming commission and only:
(a) Within the enclosure wherein the race or other sporting event which is the subject of the wagering occurs; or
(b) Within a licensed gaming establishment which has been approved to conduct off-track pari-mutuel wagering.
This subsection does not prohibit a person licensed to accept, pursuant to regulations adopted by the Nevada gaming commission, off-track pari-mutuel wagers from accepting wagers made by wire communication from patrons within the State of Nevada or from states in which such wagering is legal.
4. The regulations of the Nevada gaming commission may include, without limitation:
(a) Requiring fingerprinting of an applicant or licensee, or other method of identification.
(b) Requiring information concerning an applicant's antecedents, habits and character.
(c) Prescribing the method and form of application which any applicant for a license issued pursuant to this chapter must follow and complete before consideration of his application by the Nevada gaming commission.
5. The Nevada gaming commission may appoint [a] an off-track pari-mutuel wagering committee consisting of nine persons who are licensed to engage in off-track pari-mutuel wagering. [The commission may grant to that committee] If the commission appoints such a committee, it shall appoint to the committee:
(a) Five members from a list of nominees provided by the state association of gaming establishments whose members collectively paid the most gross revenue fees to the state pursuant to NRS 463.370 in the preceding year;
(b) Two members who, in the preceding year, paid gross revenue fees pursuant to NRS 463.370 in an amount that was less than the average amount of gross revenue fees paid by licensees engaged in off-track pari-mutuel wagering in the preceding year; and
(c) Two other members.
If a vacancy occurs in a position on the committee for any reason, including, but not limited to, termination of a member, the commission shall appoint a successor member who satisfies the same criteria in paragraph (a), (b) or (c) that applied to the member whose position has been vacated.
6. If the Nevada gaming commission appoints an off-track pari-mutuel wagering committee pursuant to subsection 5, the commission shall:
(a) Grant to the off-track pari-mutuel wagering committee the exclusive right to negotiate an agreement relating to off-track pari-mutuel wagering with:
[(a)] (1) A person who is licensed or otherwise permitted to operate a wagering pool in another state; and
[(b)] (2) A person who is licensed pursuant to chapter 464 of NRS as an operator of a system.
(b) Require the off-track pari-mutuel wagering committee to grant to each person licensed pursuant to this chapter to operate an off-track pari-mutuel race pool the right to receive, on a fair and equitable basis, all services concerning wagering in such a race pool that the committee has negotiated to bring into or provide within this state.
[6.] 7. The Nevada gaming commission shall, and it is granted the power to, demand access to and inspect all books and records of any person licensed pursuant to this chapter pertaining to and affecting the subject of the license.
Sec. 8. NRS 464.100 is hereby amended to read as follows:
464.100 [The] Except as otherwise provided in section 6 of this act, a violation of any of the provisions of this chapter or the regulations [promulgated hereunder] adopted pursuant to this chapter is a misdemeanor.
Sec. 9. Chapter 465 of NRS is hereby amended by adding thereto the provisions set forth as sections 10 to 13, inclusive, of this act.
Sec. 10. As used in sections 10 to 13, inclusive, of this act, unless the context otherwise requires, "medium of communication" includes, but is not limited to, mail, telephone, television, telegraph, facsimile, cable, wire, the Internet or any other similar medium.
Sec. 11. 1. Except as otherwise provided in section 13 of this act, a person, alone or with others, shall not knowingly, within or outside of this state:
(a) Accept or receive, directly or indirectly, through any medium of communication a wager from another person who is physically present within this state; or
(b) Allow a lessee, agent or employee to accept or receive, directly or indirectly, through any medium of communication a wager from another person who is physically present within this state.
2. If a person engages in conduct in violation of subsection 1 and the person is outside of this state at the time of the offense:
(a) The offense shall be deemed to commence outside of this state;
(b) The offense shall be deemed to be consummated within this state; and
(c) The person may be prosecuted within this state pursuant to the provisions of NRS 171.015.
3. A person who violates the provisions of this section is guilty of a misdemeanor.
Sec. 12. 1. Except as otherwise provided in section 13 of this act, a person, alone or with others, shall not knowingly:
(a) From within this state, place, send, transmit or relay through a medium of communication a wager to another person or an establishment that is located within or outside of this state; or
(b) From outside of this state, place, send, transmit or relay through a medium of communication a wager to another person or an establishment that is located within this state.
2. A person who violates the provisions of this section is guilty of a misdemeanor.
Sec. 13. The provisions of sections 11 and 12 of this act do not apply to a wager placed by a person for his own benefit or, without compensation, for the benefit of another that is accepted or received by, placed with, or sent, transmitted or relayed to:
1. A race book or sports pool that is licensed pursuant to chapter 463 of NRS, if the wager is accepted or received within this state and otherwise complies with all other applicable laws and regulations concerning wagering;
2. A person who is licensed to engage in off-track pari-mutuel wagering pursuant to chapter 464 of NRS, if the wager is accepted or received within this state and otherwise complies with subsection 3 of NRS 464.020 and all other applicable laws and regulations concerning wagering; or
3. Any other person or establishment that is licensed to engage in wagering pursuant to Title 41 of NRS, if the wager is accepted or received within this state and otherwise complies with all other applicable laws and regulations concerning wagering.
Sec. 13.3. Section 4 of Senate Bill No. 345 of this session is hereby amended to read as follows:

Sec. 4. NRS 463.013 is hereby amended to read as follows:

463.013 As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 463.0133 to 463.0197, inclusive, [and] section 2 of [this act] Senate Bill No. 318 of this session and section 2 of this act have the meanings ascribed to them in those sections.

Sec. 14. The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
Sec. 15. 1. Any committee heretofore created by the Nevada gaming commission pursuant to NRS 464.020 before the effective date of this act may be dissolved by the commission upon appointment of a committee pursuant to NRS 464.020 after the effective date of this act.
2. Any valid agreement that was executed by such a committee pursuant to NRS 464.020 before the effective date of this act is enforceable, and if the off-track pari-mutuel wagering committee is established pursuant to the amendatory provisions of section 7 of this act, the off-track pari-mutuel wagering committee shall be deemed to have assumed all rights and responsibilities associated with such an agreement.
Sec. 16. The amendatory provisions of this act do not apply to offenses that are committed before the effective date of this act.
Sec. 16.5. The amendatory provisions of sections 2, 2.5, 3.3, 3.7 and 5.5 of this act become effective when the Nevada gaming commission adopts regulations to govern the use of televised broadcasts which ensure the integrity of results of races, and upon a recommendation of the state gaming control board, and expire by limitation on December 31, 1997, if such regulations have not been adopted.
Sec. 17. This act becomes effective upon passage and approval.
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