Nevada Warns Land Casinos to Stay Away from Online Gambling

June 16, 2010 | News Category: Gaming Law

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Although the UIGEA (Unlawful Internet Gambling Enforcement Act) has been implemented, the work towards legal, and regulated, online gambling has not ceased.

The NGCB (Nevada Gaming Control Board) has told casinos based in Las Vegas that they should not yet get involved with any types of online casinos at this time. The Gaming Board has cautioned Nevada casinos to keep away from anything to do with online gaming until either federal or state legislation regarding online gambling has been passed, and it is considered legal.

Although Nevada’s gambling revenue has dipped substantially, and the only way that some casinos feel they may be able to continue to operate, and to thrive once again, is by being involved in some kind of venture that is connected to online casino gambling. Essentially, these land-based casinos wish to take their casinos online.

Randall Sayre, a board member of the NGCB, published a copy of a letter written to an anonymous lawyer, which advised that clients of the lawyer be told that they should not do business with online casino operators. The letter continued to explain that any agreements that are made between unlicensed Internet casinos, and licensed land-based casinos, are “inconsistent with the Nevada Gaming Control Act.”

One of the most well known deals that has taken place between a land-based casino operator, and an online casino operator, is that which involves Harrah’s Entertainment. They have developed their own online casino branch, and use online casino software from 888.com.

888.com are under review by the NGCB because of Harrah’s agreement with the company. The board is trying to ascertain whether the company meets their rules that will allow them to do business with a licensee. Should 888.com be approved by the NGCB, they will be the first online casino operator that may be approved for business relations with Nevada casinos.

There are other land-based casino companies that have begun to negotiate with online partners in order to be ready to establish online casinos for themselves once the online gambling market in the United States is legalized and regulated, so that they will take no time at all to move forward in the online casino industry as soon as they are allowed to according to the law.

Mr. Sayre also noted that there are a number of investigations that are being carried out by board regulators at this time, and that it would be best to avoid connections with online gambling connections for those land-based operators that are based in Nevada because it would be a sound decision “from both a state and a federal perspective.”