On May 19, 2015, Nevada Governor Brian Sandoval signed into law Senate Bill 9, which requires the Nevada Gaming Commission (“Commission”) to adopt regulations to allow skill-based gaming elements for casino games. The new law is expected to greatly expand the types of games that patrons can play in a casino by allowing new technologies and play styles to be utilized.

The law states that the Commission must “adopt regulations which encourage manufacturers to develop and deploy gaming devices, associated equipment and various gaming support systems that incorporate innovative, alternative and advanced technology.” These regulations may include games of skill, chance, or hybrid games featuring both elements. In addition, the law authorizes the Commission to allow multiplayer games that allow for “the interactive and concurrent play of games supported by networked server computers.”

The legislation was initiated in part by the Association of Gaming Equipment Manufacturers (“AGEM”), who polled slot machine technology companies prior to the introduction of the legislation on how best to create an innovative environment. After a wide consensus that variable payback games governed in part by player skill provided the greatest opportunity for creative game changes, AGEM forwarded its concept to a Nevada legislative committee that in turn recommended the concept to the legislature.

AGEM President and Chief Compliance Officer of Konami Gaming Thomas Jingoli announced that “AGEM is especially proud to be the initiator and one of the driving forces behind the milestone event.” Executive Director Marcus Prater also noted the event, stating in a press release, “I believe we will look back on the passage of SB 9 as a monumental moment for the gaming industry and its overall evolution. The slot floor will not transform overnight, but this will allow our industry to capitalize on radical new gaming concepts and technologies and give AGEM members the ability to unleash a new level of creativity for their casino customers.”

The legislation was also applauded by the American Gaming Association, which called on other gaming jurisdictions to follow Nevada’s lead and incorporate similar types of gaming options in their gaming facilities.

For more information on Senate Bill 9, including the text of the legislation, please visit the Nevada legislature’s website at:  https://www.leg.state.nv.us/Session/78th2015/Reports/history.cfm?BillName=SB9


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