LAS VEGAS SEES LIGHT AT THE END OF THE TUNNEL
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By Sharon Harris
he desert town has enjoyed huge growth and popularity since the legalization of gaming in the 1930s. A short time ago, Las Vegas was repeatedly the American city with the highest annual population growth. Unfortunately, Las Vegas has suffered devastating economic woes since 2008.
Las Vegas unemployment – more than 15 per cent – ranks among the highest jurisdictions in the US. Housing vacancy rates have affected one in seven homes, with thousands more in jeopardy.
The alarming news from September 2010 through March 2011has meant the three Las
Vegas gaming neighborhoods (the Strip, downtown and the Boulder Highway properties) have experienced both slot and table games revenue decreases. Fuel prices have affected automobile traffic from California into Nevada. Spring 2011 brought better news in May. For the fifteenth straight month, the Las Vegas
Convention and Visitors Authority (LVCVA) reported increased visitation and room rates/occupancy. Passenger traffic at McCarran International Airport was also up five per cent during the year-over-year period. The Strip gaming win rose by its largest percentage since early 2010. The LVCVA reported the increases were boosted by strong baccarat play and sports betting over slots and tables. Nevada legislators realize the necessity of creating a positive commercial investment
climate. They have streamlined some official procedures to keep pace with the ever-changing gaming industry.
Expediting gaming machine certification will become a reality next year. Governor Brian
Sandoval recently approved Assembly Bill 279, which will allow independent laboratories to validate a new game’s functions and integrity. Certification will no longer be restricted to state-run laboratories. Nevada gaming manufacturers currently use private testing labs for approvals in other jurisdictions. Adding Nevada’s game to their certification programs would assist in their development of more consistent standards while also promote new games that may be backlogged at the state’s labs. The law will maintain the Nevada Gaming Control Board’s authority to oversee the private
laboratories’ work. New guidelines and methodology for private certification must be adopted by May 1, 2012.
To promote greater gaming investment within Nevada, another new state law shortens the licensing process. Individuals or companies may now apply for a license even if they do not operate a gaming company or hold an acquisition agreement to buy a casino. Since state regulators sought financially
secure deals, the former 1980s criteria required applicants to already be conducting casino business or have an agreement to be involved in one. However, the May 2011 closure of the Sahara and the unfinished Echelon and Fountainebleau projects on the Strip have forced regulators to reassess their regulations. Applicants will face the same scrutiny by the Nevada Gaming Control Board, with
background checks completed within 12 to 18 months. A "finding of suitability", the same as a regular gaming license, will expire after two years if not renewed. It should shorten a subsequent application for specific casino ownership or operation. Violators will face significant repercussions since the new law streamlines gaming control disciplinary complaints. Each violation will carry fines of $25,000 to $250,000. Internet gaming continues to be a major concern for Nevada legislators. To plan for
potential federal Internet gaming laws, a bill is working its way through Nevada’s state government. It would allow the Nevada Gaming Commission to adopt online poker regulations and grant licenses to casinos if either Congress passes an Internet gambling bill or the U.S. Department of Justice legalizes online gaming. The plan addresses the 2006 federal Unlawful Internet Gambling Enforcement Act, which
prohibited banks and other financial companies from processing gambling transactions across state lines and spelled out the criteria for legalizing intrastate gambling if expressly permitted by state law. An amendment will prevent the state and federal government from simultaneously levying
a tax. Nevada’s 6.75 percent gross gaming tax would be voided if the federal government applies its own tax. License fees for operating interactive gaming, and for manufacturers and equipment
associated with interactive gaming, are defined. Any resort that with a non-restricted license for at least five years prior to filing the application may receive an interactive poker license.
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