Introduction to the Online Casino Business MAIN
Software Licensing and a List of Companies that Provide Internet Casino and Sportsbook Software SOFTWARE
Internet Marketing Companies that get Web Traffic to a Casino Web Site MARKETING
Sublicensing an Online Casino and Sportsbook operation from a Licensee AFFILIATE PROGRAMS
Payment Processing and Merchant Accounts for Online Casino and Sportsbook operations to use E-COMMERCE
Software Considerations GAME TYPES
Legislation issues for the USA and abroad LEGAL ISSUES
Internet Betting and Other Gambling/Casino Related Conferences CONFERENCES
Economic Factors worth considering with an Internet Casino Operation ECONOMICS
Things to Watch for when Starting an Online Betting Business PITFALLS
Forums - Hear what others have to say about the business MESSAGE BOARDS
Internet Casino and Sportsbook Links: News, Stocks, Organizations, etc. LINKS
About Yorktown Ventures and the Author ABOUT US


SIGNUP

Signup for the FREE START CASINO newsletter : Industry News, New Betting Software, Marketing Opportunities, Upcoming Conferences and Legal Developments

START CASINO . COM
Independent Information Site on Starting an Online Casino Business
 
English en espa˝ol en Franšais Deutsch Italiano Wersja Polska Japanese Hebrew Mandarin) Cantonese
 

INTERNET BETTING INFORMATION
NEVADA STATE LEGISLATURE BILL AB 466






PROPOSED LEGISLATION
Provided to  START CASINO . COM   courtesy of the Nevada State Legislature

Assembly Bill No. 578 - Committee on Judiciary
Includes Assembly Amendment to Assembly Bill No. 578 (BDR 41 ‑531)

(On Behalf of Gaming Control Board)



SUMMARY - Revises various provisions relating to gaming. .
        (BDR 41-531)

FISCAL NOTE: Effect on Local Government: No.
                        Effect on the State: No.



Amend the title of the bill to read as follows:

AN ACT relating to gaming; providing for certain application fees and license fees relating to interactive gaming; exempting the operation of interactive gaming from certain other fees and taxes; revising the definition of "gross revenue" for the purposes of the Nevada Gaming Control Act; revising the computation of interest payable by the Nevada gaming commission on the overpayment of certain fees and taxes; revising provisions relating to persons who acquire a certain beneficial ownership in a publicly traded corporation registered with the commission; providing a penalty; and providing other matters properly relating thereto.

Amend the bill as a whole by deleting section 1, renumbering sections 2 and 3 as sections 8 and 9 and adding new sections designated sections 1 through 7, following the enacting clause, to read as follows:

Section 1.

Chapter 463 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6, inclusive, of this act.

Sec. 2.

1. An application for a license for an establishment to operate interactive gaming:

(a) Must be accompanied by a nonrefundable application fee of $100,000 when the application is filed with the board.

(b) May be filed with the board, on a form approved by the board:

(1) Not later than 90 days after the effective date of this section; or

(2) Not earlier than 181 days after the commission issues the first license for an establishment to operate interactive gaming pursuant to this chapter.

2. The board shall not accept an application for a license for an establishment to operate interactive gaming filed on any date other than a date described in paragraph (b) of subsection 1.

Sec. 3.

1. Before issuing a license for an establishment to operate interactive gaming, the commission shall charge and collect from the establishment a license fee of $1,000,000.

2. Each license for an establishment to operate interactive gaming must be issued for a 2-year period beginning on January 1 of the first year and ending on December 31 of the second year.

3. Notwithstanding the provisions of subsections 1 and 2 to the contrary, a license for an establishment to operate interactive gaming may be issued after January 1 of a calendar year for a period beginning on the date of issuance of the license and ending on the second December 31 following the date of issuance of the license. Before issuing a license pursuant to this subsection, the commission shall charge and collect from the establishment a license fee of $1,000,000 prorated by 1/24 for each full month between January 1 of the calendar year and the date of issuance of the license.

4. Before renewing a license issued pursuant to this section, but in no case later than the second December 31after the license was issued or previously renewed, the commission shall charge and collect a renewal fee of $1,000,000 for the renewal of the license for the immediately following 2-year period.

Sec. 4.

The operation of interactive gaming is exempt from the fees and taxes imposed pursuant to NRS463.375, 463.380, 463.383 and 463.385.

Sec. 5.

1. Before issuing a license for a manufacturer of a gaming device for interactive gaming, manufacturer of equipment associated with a gaming device for interactive gaming or manufacturer of peripheral equipment related to a gaming device for interactive gaming, the commission shall charge and collect a license fee of:

(a) Two hundred and fifty thousand dollars for a license for a manufacturer of a gaming device for interactive gaming;

(b) One hundred thousand dollars for a license for a manufacturer of equipment associated with a gaming device for interactive gaming; or

(c) Fifty thousand dollars for a license for a manufacturer of peripheral equipment related to a gaming device for interactive gaming.

2. Each license issued pursuant to this section must be issued for a 1-year period that begins on the date the license is issued.

3. Before renewing a license issued pursuant to this section, but in no case later than 1 year after the license was issued or previously renewed, the commission shall charge and collect a renewal fee for the renewal of the license for the immediately following 1-yearperiod. The renewal fee for a license for a:

(a) Manufacturer of a gaming device for interactive gaming is an amount equal to the greater of:

(1) Fifty thousand dollars; or

(2) Fifty thousand dollars multiplied by the number of establishments licensed to operate interactive gaming that, on the date of renewal, have an agreement with the manufacturer of a gaming device for interactive gaming to share the revenue from an interactive gaming system.

(b) Manufacturer of equipment associated with a gaming device for interactive gaming is $50,000.

(c) Manufacturer of peripheral equipment related to a gaming device for interactive gaming is $25,000.

Sec. 6.

1. In addition to the fees set forth in section5 of this act, a licensed manufacturer of a gaming device for interactive gaming shall pay a monthly license fee pursuant to this section for each agreement to share the revenue from an interactive gaming system into which the manufacturer of a gaming device for interactive gaming has entered with an establishment licensed to operate interactive gaming.

2. Each establishment licensed to operate interactive gaming with which the manufacturer of a gaming device for interactive gaming has an agreement to share the revenue from an interactive gaming system shall transmit the license fee required by subsection 1 on behalf of the manufacturer of a gaming device for interactive gaming based upon the amount of revenue to which the manufacturer of a gaming device for interactive gaming is entitled pursuant to the agreement, as follows:

(a) Six and one-quarter percent of the revenue from the previous calendar month that does not exceed $500,000;

(b) Nine and one-half percent of the revenue from the previous calendar month that exceeds $500,000 and does not exceed $1,000,000; and

(c) Twelve and three-quarters percent of the revenue from the previous calendar month that exceeds $1,000,000.

3. For the purposes of subsection 2, the amount of revenue to which the manufacturer of a gaming device for interactive gaming is entitled pursuant to an agreement to share the revenue from an interactive gaming system:

(a) Includes all revenue of the manufacturer of a gaming device for interactive gaming that is his share of the revenue from the interactive gaming system pursuant to the agreement; and

(b) Does not include revenue that is the fixed purchase price for the sale of a component of the interactive gaming system.

4. Each establishment licensed to operate interactive gaming described in subsection 2 shall:

(a) Withhold the amount necessary to pay the license fee from the share due the manufacturer of a gaming device for interactive gaming pursuant to the agreement; and

(b) Transmit the license fee on behalf of the manufacturer of a gaming device for interactive gaming on the same date and in the same manner as the establishment pays license fees pursuant to NRS 463.370.

5. Revenue upon which a license fee is paid pursuant to this section is not subject to the provisions of NRS 463.370.

Sec. 7.

NRS 463.0161 is hereby amended to read as follows:

463.0161 1. "Gross revenue" means the total of all:

(a) Cash received as winnings;

(b) Cash received in payment for credit extended by a licensee to a patron for purposes of gaming; and

(c) Compensation received for conducting any game in which the licensee is not party to a wager, less the total of all cash paid out as losses to patrons, those amounts paid to fund periodic payments and any other items made deductible as losses by NRS 463.3715. For the purposes of this section, cash or the value of noncash prizes awarded to patrons in a contest or tournament are not losses, except that losses in a contest or tournament conducted in conjunction with an inter-casino linked system may be deducted to the extent of the compensation received for the right to participate in that contest or tournament.

2. The term does not include:

(a) Counterfeit facsimiles of money, chips, tokens, wagering instruments or wagering credits;

(b) Coins of other countries which are received in gaming devices;

(c) Any portion of the face value of any chip, token or other representative of value won by a licensee from a patron for which the licensee can demonstrate that it or its affiliate has not received cash;

(d) Cash taken in fraudulent acts perpetrated against a licensee for which the licensee is not reimbursed;

(e) Cash received as entry fees for contests or tournaments in which patrons compete for prizes, except for a contest or tournament conducted in conjunction with an inter-casino linked system;

(f) Uncollected baccarat commissions;

(g) Cash provided by the licensee to a patron and subsequently won by the licensee, for which the licensee can demonstrate that it or its affiliate has not been reimbursed; or

(h) Revenue from an interactive gaming system to which a manufacturer of a gaming device for interactive gaming is entitled pursuant to an agreement to share revenue between the manufacturer of a gaming device for interactive gaming and the licensee.

3. As used in this section, "baccarat commission" means:

(a) A fee assessed by a licensee on cash paid out as a loss to a patron at baccarat to modify the odds of the game; or

(b) A rate or fee charged by a licensee for the right to participate in a baccarat game.".

Sec. 8.

1. An application for a license for an establishment to operate interactive gaming:

(a) Must be accompanied by a nonrefundable application fee of $100,000 when the application is filed with the board.

(b) May be filed with the board, on a form approved by the board:

(1) Not later than 90 days after the effective date of this section; or

(2) Not earlier than 181 days after the commission issues the first license for an establishment to operate interactive gaming pursuant to this chapter.

2. The board shall not accept an application for a license for an establishment to operate interactive gaming filed on any date other than a date described in paragraph (b) of subsection 1.

Sec. 9.

1. Before issuing a license for an establishment to operate interactive gaming, the commission shall charge and collect from the establishment a license fee of $1,000,000.

2. Each license for an establishment to operate interactive gaming must be issued for a 2-year period beginning on January 1 of the first year and ending on December 31 of the second year.

3. Notwithstanding the provisions of subsections 1 and 2 to the contrary, a license for an establishment to operate interactive gaming may be issued after January 1 of a calendar year for a period beginning on the date of issuance of the license and ending on the second December 31 following the date of issuance of the license. Before issuing a license pursuant to this subsection, the commission shall charge and collect from the establishment a license fee of $1,000,000 prorated by 1/24 for each full month between January 1 of the calendar year and the date of issuance of the license.

4. Before renewing a license issued pursuant to this section, but in no case later than the second December 31 after the license was issued or previously renewed, the commission shall charge and collect a renewal fee of $1,000,000 for the renewal of the license for the immediately following 2-year period.

Amend the bill as a whole by renumbering sections 4 through 6 as sections 11 through 13 and adding a new section designated sec. 10, following sec. 3, to read as follows:

Sec. 10.

NRS 463.400 is hereby amended to read as follows:

463.400 Any person who willfully fails to report, pay or truthfully account for and pay over the license fees imposed by NRS 463.370,463.373 to 463.3855, inclusive, and sections 3 to 6, inclusive, of this act, 463.390 and 463.450, or willfully attempts in any manner to evade or defeat any such tax or payment thereof, or any licensee who puts additional games into play without authority of the commission to do so or any licensee who fails to remit any license fee provided for by this chapter when due is in addition to the amount due liable for a penalty of the amount of the license fee evaded or not paid, collected or paid over. The penalty must be assessed and collected in the same manner as are other charges, license fees and penalties under this chapter.

Sec. 11.

The operation of interactive gaming is exempt from the fees and taxes imposed pursuant to NRS 463.375, 463.380, 463.383 and 463.385.

Sec. 12.

1. Before issuing a license for a manufacturer of a gaming device for interactive gaming, manufacturer of equipment associated with a gaming device for interactive gaming or manufacturer of peripheral equipment related to a gaming device for interactive gaming, the commission shall charge and collect a license fee of:

(a) Two hundred and fifty thousand dollars for a license for a manufacturer of a gaming device for interactive gaming;

(b) One hundred thousand dollars for a license for a manufacturer of equipment associated with a gaming device for interactive gaming; or

(c) Fifty thousand dollars for a license for a manufacturer of peripheral equipment related to a gaming device for interactive gaming.

2. Each license issued pursuant to this section must be issued for a 1-year period that begins on the date the license is issued.

3. Before renewing a license issued pursuant to this section, but in no case later than 1 year after the license was issued or previously renewed, the commission shall charge and collect a renewal fee for the renewal of the license for the immediately following 1-year period. The renewal fee for a license for a:

(a) Manufacturer of a gaming device for interactive gaming is an amount equal to the greater of:

(1) Fifty thousand dollars; or

(2) Fifty thousand dollars multiplied by the number of establishments licensed to operate interactive gaming that, on the date of renewal, have an agreement with the manufacturer of a gaming device for interactive gaming to share the revenue from an interactive gaming system.

(b) Manufacturer of equipment associated with a gaming device for interactive gaming is $50,000.

(c) Manufacturer of peripheral equipment related to a gaming device for interactive gaming is $25,000.

Sec. 13.

1. In addition to the fees set forth in section 5 of this act, a licensed manufacturer of a gaming device for interactive gaming shall pay a monthly license fee pursuant to this section for each agreement to share the revenue from an interactive gaming system into which the manufacturer of a gaming device for interactive gaming has entered with an establishment licensed to operate interactive gaming.

2. Each establishment licensed to operate interactive gaming with which the manufacturer of a gaming device for interactive gaming has an agreement to share the revenue from an interactive gaming system shall transmit the license fee required by subsection 1 on behalf of the manufacturer of a gaming device for interactive gaming based upon the amount of revenue to which the manufacturer of a gaming device for interactive gaming is entitled pursuant to the agreement, as follows:

(a) Six and one-quarter percent of the revenue from the previous calendar month that does not exceed $500,000;

(b) Nine and one-half percent of the revenue from the previous calendar month that exceeds $500,000 and does not exceed $1,000,000; and

(c) Twelve and three-quarters percent of the revenue from the previous calendar month that exceeds $1,000,000.

3. For the purposes of subsection 2, the amount of revenue to which the manufacturer of a gaming device for interactive gaming is entitled pursuant to an agreement to share the revenue from an interactive gaming system:

(a) Includes all revenue of the manufacturer of a gaming device for interactive gaming that is his share of the revenue from the interactive gaming system pursuant to the agreement; and

(b) Does not include revenue that is the fixed purchase price for the sale of a component of the interactive gaming system.

4. Each establishment licensed to operate interactive gaming described in subsection 2 shall:

(a) Withhold the amount necessary to pay the license fee from the share due the manufacturer of a gaming device for interactive gaming pursuant to the agreement; and

(b) Transmit the license fee on behalf of the manufacturer of a gaming device for interactive gaming on the same date and in the same manner as the establishment pays license fees pursuant to NRS 463.370.

5. Revenue upon which a license fee is paid pursuant to this section is not subject to the provisions of NRS 463.370.

Amend the bill as a whole by deleting sec.7 and adding new sections designated sections 14 and 15, following sec. 6, to read as follows:

Sec. 14.

The amendatory provisions of sections 1 through 7, inclusive, and10 of this act do not apply to offenses committed before the effective date of sections 1 through 7, inclusive, and 10 of this act.

Sec. 15.

1. This section and section 14 of this act become effective upon passage and approval.

2. Sections 1 through 7, inclusive, and 10 of this act become effective upon passage and approval only if the governor has first signed Assembly Bill No. 296 of this session.

3. Sections 8, 9, 11, 12 and 13 of this act become effective on July 1, 2001.

MAIN    SOFTWARE    MARKETING    AFFILIATE PROGRAMS    E-COMMERCE    GAME TYPES    LEGAL ISSUES    CONFERENCES    ECONOMICS    PITFALLS    MESSAGE BOARDS    LINKS    ABOUT US



Questions/Comments? Email the WEBMASTER
Interested in Advertising on this page? E-mail HERE
   Last Update: October 2010    Legal Disclaimers
Copyright © 2000-2017
Yorktown Ventures, Inc
All rights reserved