Las Vegas Review Journal – A legislative committee tasked with looking at technology’s effect on the casino industry launched a debate Thursday on whether Nevada’s more than 2,000 restricted gaming locations rely too heavily on slot machines as a revenue source.
The issue — whether funds gleaned from gaming in bars, taverns, restaurants and other businesses with 15 or fewer slot machines incidental to the location’s overall revenue stream — has been argued over the past few years by lawmakers, gaming regulators, the casino industry, restricted licensees and others.
Various changes have been made to state and local ordinances, regulations and statutes.
On Thursday, the Committee to Conduct an Interim Study Concerning the Impact of Technology Upon Gaming, which is comprised of legislators, regulators and gaming industry representatives, was told to leave well enough alone.
“It’s been governed and it’s been regulated,” said Las Vegas attorney John O’Reilly, representing several tavern operators and their trade association. “It’s as perfect as it’s going to be. As it is now, we have a clear direction and there should not be any changes made.”
Las Vegas attorney and lobbyist Sean Higgins, representing Golden Gaming, agreed with O’Reilly, but added one caveat.
Higgins suggested the Legislature increase funding to the Gaming Control Board so agents can better police the restricted gaming locations and weed out businesses that are nothing more than slot machine parlors.
“The regulations, as they stand right now, are fine and our members are meeting the requirement,” Higgins said. “But let’s make sure our regulators have the ability to police those that are not in compliance.”
Several tavern operators and casino industry representatives, backed by the Nevada Resort Association, have long questioned the business model of the Dotty’s casinos, which are operated by Nevada Restaurant Services.
Station Casinos Vice President Mike Sloan, a member of the committee, questioned O’Reilly on the number of people employed by Dotty’s.
Three casino company executives didn’t mention Dotty’s by name, but testified that the business model, which in the past included locations with 15 slot machines offering minimal food and beverage service, was unfair to nonrestricted licensees.
“The vast majority of the restricted licensees play by the rules of the game,” Cannery Casinos Executive Vice President Guy Hillyer told the committee. “But there are others that don’t. Give the regulators the tools they need to make sure these locations are brought into compliance.”
