SUMMARY--Revises provisions regulating providers of information services to gaming licensees. (BDR 41-487)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to gaming; revising the provisions governing the regulation of persons who provide information services concerning wagering on sporting and other events to gaming licensees; exempting such information services from provisions governing solicitation by telephone; and providing other matters properly relating thereto.
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 the provisions set forth as sections 2 and 3 of this act.
Sec. 2 "Information service" means a person who sells, furnishes or otherwise provides information to a licensed sports pool that is used primarily to aid the placing of wagers on events of any kind. The term includes, without limitation, a person who sells, furnishes or otherwise provides any:
1. Line, point spread or odds;
2. Information, advice or consultation considered by a licensee in establishing or setting any line, point spread or odds; or
3. Advice, estimate or prediction regarding the outcome of an event.
The term does not include a newspaper or magazine of general circulation or a television or radio broadcast if the primary purpose of the newspaper, magazine or broadcast is other than to aid the placing of wagers on events of any kind.
Sec. 3 1. The commission shall, before issuing a state gaming license to an operator of an information service, charge and collect an annual fee of $6,000.
2. Each such license must be issued for a calendar year beginning on January 1 and ending on December 31. If the operation of the licensee is continuing, the commission shall charge and collect the fee on or before December 31 for the ensuing calendar year.
3. Except as otherwise provided in NRS 463.386, the fee to be charged and collected pursuant to this section is the full annual fee, without regard to the date of application for or issuance of the license.
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 have the meanings ascribed to them in those sections.
Sec. 5 NRS 463.0157 is hereby amended to read as follows:
463.0157 1. "Gaming employee" means any person connected directly with an operator of a slot route, the operator of a pari-mutuel system, the operator of an inter-casino linked system or a manufacturer, distributor or disseminator, or with the operation of a gaming establishment licensed to conduct any game, 16 or more slot machines, a race book, sports pool or pari-mutuel wagering, including:
(a) Accounting or internal auditing personnel who are directly involved in any recordkeeping or the examination of records associated with revenue from gaming;
(b) Boxmen;
(c) Cashiers;
(d) Change personnel;
(e) Counting room personnel;
(f) Dealers;
(g) Employees of a person required by NRS 464.010 to be licensed to operate an off-track pari-mutuel system;
(h) Employees of a person required by NRS 463.430 to be licensed to disseminate information concerning racing;
(i) Employees of manufacturers or distributors of gaming equipment within this state whose duties are directly involved with the manufacture, repair or distribution of gaming equipment;
(j) Employees of operators of slot routes who have keys for slot machines or who accept and transport revenue from the slot drop;
(k) Employees of operators of inter-casino linked systems;
(l) Floormen;
(m) Hosts or other persons empowered to extend credit or complimentary services;
(n) Keno runners;
(o) Keno writers;
(p) Machine mechanics;
(q) Odds makers and line setters;
(r) Security personnel;
(s) Shift or pit bosses;
(t) Shills;
(u) Supervisors or managers; [and]
(v) Ticket writers [.] ; and
(w) Employees of a person required by NRS 463.160 to be licensed to operate an information service.
2. "Gaming employee" does not include bartenders, cocktail waitresses or other persons engaged exclusively in preparing or serving food or beverages.
Sec. 6 NRS 463.160 is hereby amended to read as follows:
463.160 1. Except as otherwise provided in subsection 4, it is unlawful for any person, either as owner, lessee or employee, whether for hire or not, either solely or in conjunction with others:
(a) To deal, operate, carry on, conduct, maintain or expose for play in the State of Nevada any gambling game, gaming device, inter-casino linked system, slot machine, race book or sports pool;
(b) To provide or maintain any information service ; [the primary purpose of which is to aid the placing or making of wagers on events of any kind;] or
(c) To receive, directly or indirectly, any compensation or reward or any percentage or share of the money or property played, for keeping, running or carrying on any gambling game, slot machine, gaming device, race book or sports pool,
without having first procured, and thereafter maintaining in effect, all federal, state, county and municipal gaming licenses as required by statute, regulation or ordinance or by the governing board of any unincorporated town.
2. The licensure of an operator of an inter-casino linked system is not required if:
(a) A gaming licensee is operating an inter-casino linked system on the premises of an affiliated licensee; or
(b) An operator of a slot machine route is operating an inter-casino linked system consisting of slot machines only.
3. Except as otherwise provided in subsection 4, it is unlawful for any person knowingly to permit any gambling game, slot machine, gaming device, inter-casino linked system, race book or sports pool to be conducted, operated, dealt or carried on in any house or building or other premises owned by him, in whole or in part, by a person who is not licensed pursuant to this chapter, or his employee.
4. The commission may, by regulation, authorize a person to own or lease slot machines for the limited purpose of display or use in the person's private residence without procuring a state gaming license.
5. As used in this section, "affiliated licensee" has the meaning ascribed to it in NRS 463.430.
Sec. 7 NRS 599B.010 is hereby amended to read as follows:
599B.010 As used in this chapter, unless the context otherwise requires:
1. "Chance promotion" means any plan in which premiums are distributed by random or chance selection.
2. "Commissioner" means the commissioner of consumer affairs.
3. "Consumer" means a person who is solicited by a seller or salesman.
4. "Division" means the consumer affairs division of the department of business and industry.
5. "Donation" means a promise, grant or pledge of money, credit, property, financial assistance or other thing of value given in response to a solicitation by telephone, including, but not limited to, a payment or promise to pay in consideration for a performance, event or sale of goods or services. The term does not include volunteer services, government grants or contracts or a payment by members of any organization of membership fees, dues, fines or assessments or for services rendered by the organization to those persons, if:
(a) The fees, dues, fines, assessments or services confer a bona fide right, privilege, professional standing, honor or other direct benefit upon the member; and
(b) Membership in the organization is not conferred solely in consideration for making a donation in response to a solicitation.
6. "Goods or services" means any property, tangible or intangible, real, personal or mixed, and any other article, commodity or thing of value.
7. "Premium" includes any prize, bonus, award, gift or any other similar inducement or incentive to purchase.
8. "Recovery service" means a business or other practice whereby a person represents or implies that he will, for a fee, recover any amount of money that a consumer has provided to a seller or salesman pursuant to a solicitation governed by the provisions of this chapter.
9. "Salesman" means any person:
(a) Employed or authorized by a seller to sell, or to attempt to sell, goods or services by telephone;
(b) Retained by a seller to provide consulting services relating to the management or operation of the seller's business; or
(c) Who communicates on behalf of a seller with a consumer:
(1) In the course of a solicitation by telephone; or
(2) For the purpose of verifying, changing or confirming an order,
except that a person is not a salesman if his only function is to identify a consumer by name only and he immediately refers the consumer to a salesman.
10. Except as otherwise provided in subsection 11, "seller" means any person who, on his own behalf, causes or attempts to cause a solicitation by telephone to be made through the use of one or more salesmen or any automated dialing announcing device under any of the following circumstances:
(a) The person initiates contact by telephone with a consumer and represents or implies:
(1) That a consumer who buys one or more goods or services will receive additional goods or services, whether or not of the same type as purchased, without further cost, except for actual postage or common carrier charges;
(2) That a consumer will or has a chance or opportunity to receive a premium;
(3) That the items for sale are gold, silver or other precious metals, diamonds, rubies, sapphires or other precious stones, or any interest in oil, gas or mineral fields, wells or exploration sites or any other investment opportunity;
(4) That offered for sale is information or opinions relating to sporting events;
(5) That offered for sale are the services of a recovery service; or
(6) That the consumer will receive a premium or goods or services if he makes a donation;
(b) The solicitation by telephone is made by the person in response to inquiries from a consumer generated by a notification or communication sent or delivered to the consumer that represents or implies:
(1) That the consumer has been in any manner specially selected to receive the notification or communication or the offer contained in the notification or communication;
(2) That the consumer will receive a premium if the recipient calls the person;
(3) That if the consumer buys one or more goods or services from the person, the consumer will also receive additional or other goods or services, whether or not the same type as purchased, without further cost or at a cost that the person represents or implies is less than the regular price of the goods or services;
(4) That offered for sale are the services of a recovery service; or
(5) That the consumer will receive a premium or goods or services if he makes a donation; or
(c) The solicitation by telephone is made by the person in response to inquiries generated by advertisements that represent or imply that the person is offering to sell any:
(1) Gold, silver or other metals, including coins, diamonds, rubies, sapphires or other stones, coal or other minerals or any interest in oil, gas or other mineral fields, wells or exploration sites, or any other investment opportunity;
(2) Information or opinions relating to sporting events; or
(3) Services of a recovery service.
11. "Seller" does not include:
(a) A person licensed pursuant to chapter 90 of NRS when soliciting offers, sales or purchases within the scope of his license.
(b) A person licensed pursuant to chapter 119A, 119B, 624, 645 or 696A of NRS when soliciting sales within the scope of his license.
(c) A person licensed as an insurance broker, agent or solicitor when soliciting sales within the scope of his license.
(d) Any solicitation of sales made by the publisher of a newspaper or magazine or by an agent of the publisher pursuant to a written agreement between the agent and publisher.
(e) A broadcaster soliciting sales who is licensed by any state or federal authority, if the solicitation is within the scope of the broadcaster's license.
(f) A person who solicits a donation from a consumer when:
(1) The person represents or implies that the consumer will receive a premium or goods or services with an aggregated fair market value of 2 percent of the donation or $50, whichever is less; or
(2) The consumer provides a donation of $50 or less in response to the solicitation.
(g) A charitable organization which is registered or approved to conduct a lottery pursuant to chapter 462 of NRS.
(h) A public utility or motor carrier which is regulated pursuant to chapter 704 or 706 of NRS, or by an affiliate of such a utility or motor carrier, if the solicitation is within the scope of its certificate or license.
(i) A utility which is regulated pursuant to chapter 710 of NRS, or by an affiliate of such a utility.
(j) A person soliciting the sale of books, recordings, video cassettes or similar items through an organization whose method of sales is governed by the regulations of the Federal Trade Commission relating to the use of negative option plans by sellers in commerce, including the use of continuity plans, subscription arrangements, arrangements for standing orders, supplements, and series arrangements under which the person periodically ships merchandise to a consumer who has consented in advance to receive the merchandise on a periodic basis and has the opportunity to review the merchandise for at least 10 days and return it for a full refund within 30 days after it is received.
(k) A person who solicits sales by periodically publishing and delivering a catalog to consumers if the catalog:
(1) Contains a written description or illustration of each item offered for sale and the price of each item;
(2) Includes the business address of the person;
(3) Includes at least 100 pages of written material and illustrations;
(4) Is distributed in more than one state; and
(5) Has an annual circulation by mailing of not less than 250,000.
(l) A person soliciting without the intent to complete and who does not complete, the sales transaction by telephone but completes the sales transaction at a later face-to-face meeting between the solicitor and the consumer, if the person, after soliciting a sale by telephone, does not cause another person to collect the payment from or deliver any goods or services purchased to the consumer.
(m) Any commercial bank, bank holding company, subsidiary or affiliate of a bank holding company, trust company, savings and loan association, credit union, industrial loan company, personal property broker, consumer finance lender, commercial finance lender, or insurer subject to regulation by an official or agency of this state or of the United States, if the solicitation is within the scope of the certificate or license held by the entity.
(n) A person holding a certificate of authority issued pursuant to chapter 452 of NRS when soliciting sales within the scope of the certificate.
(o) A person licensed pursuant to chapter 689 of NRS when soliciting sales within the scope of his license.
(p) A person soliciting the sale of services provided by a community antenna television company subject to regulation pursuant to chapter 711 of NRS.
(q) A person soliciting the sale of agricultural products, if the solicitation is not intended to and does not result in a sale of more than $100. As used in this paragraph, "agricultural products" has the meaning ascribed to it in NRS 587.290.
(r) A person who has been operating, for at least 2 years, a retail business establishment under the same name as that used in connection with the solicitation of sales by telephone if, on a continuing basis:
(1) Goods are displayed and offered for sale or services are offered for sale and provided at the person's business establishment; and
(2) At least 50 percent of the person's business involves the buyer obtaining such goods or services at the person's business establishment.
(s) A person soliciting only the sale of telephone answering services to be provided by the person or his employer.
(t) A person soliciting a transaction regulated by the Commodity Futures Trading Commission, if:
(1) The person is registered with or temporarily licensed by the Commission to conduct that activity pursuant to the Commodity Exchange Act (7 U.S.C. §§ 1 et seq.); and
(2) The registration or license has not expired or been suspended or revoked.
(u) A person who contracts for the maintenance or repair of goods previously purchased from the person:
(1) Making the solicitation; or
(2) On whose behalf the solicitation is made.
(v) A person to whom a license to operate an information service or a nonrestricted gaming license, which is current and valid, has been issued pursuant to chapter 463 of NRS when soliciting sales within the scope of his license.
(w) A person who solicits a previous customer of the business on whose behalf the call is made if the person making the call:
(1) Does not offer the customer any premium in connection with the sale;
(2) Is not selling an investment or an opportunity for an investment that is not registered with any state or federal authority; and
(3) Is not regularly engaged in telephone sales.
(x) A person who solicits the sale of livestock.
(y) An issuer or wholly owned subsidiary of an issuer which has a security that is listed on the New York Stock Exchange.
Sec. 8 Notwithstanding the provisions of section 2 of this act, an information service that is conducting business on October 1, 1997, may continue conducting business after that date if it submits an application for a license to the Nevada gaming commission on or before December 31, 1997. Upon the timely filing of an application, the information service may continue to conduct business without a license until it receives notification of the decision of the commission granting or denying a license.