Nevada Could Allow Gamblers to Use Winnings as Cash Alternative
Nevada's gambling landscape could soon see a significant modernization if a proposal from the Nevada Gaming Control Board (NGCB) to expand the use of wagering accounts is approved. According to CDC Gaming, the Nevada Gaming Commission is set to vote in December on a regulatory amendment that would permit gamblers to use their wagering accounts not only for gambling but also for non-gaming expenses such as meals, retail shopping, and other purchases within a casino resort.
A partial view of the Las Vegas skyline during the day. (Source: Associated Press)
LISTEN TO THIS ARTICLE:Currently, wagering accounts in Nevada are restricted solely to gambling purposes. However, this shift comes as the cashless payment trend continues to grow, and Nevada's regulators seek ways to keep pace with technological advances in the gaming industry.
Related: Boyd and Aristocrat Bring Cashless Gaming to NevadaThe proposed regulation would allow casino patrons to tap into their winnings as a cash alternative to cover expenses within the same casino property. The NGCB has recommended the change, emphasizing that cashless gaming companies have been a driving force behind this shift, aiming to broaden the use of their technology while enhancing convenience for players. However, the proposal would keep the expanded use of wagering accounts confined strictly to the boundaries of the casino resort, with no allowances for use outside of the property or out of state.
The NGCB's chair, Kirk Hendrick, voiced support for the proposal, emphasizing the inevitability of cashless systems in today's world and suggesting that Nevada should adapt to these shifts in consumer behavior. Hendrick noted that while there are inherent concerns about issues like money laundering, he feels confident that the proposed system includes safeguards that minimize these risks. The expansion of wagering account uses is seen as a logical progression, aligned with the broader societal trend toward digital transactions.
Another NGCB member, Brittnie Watkins, backed the proposal, highlighting that technological advances have made such an expansion feasible. Watkins observed that cashless gaming companies already have the necessary technology to facilitate non-gaming transactions.
Fellow member George Assad also voiced support for regulatory updates that would benefit Nevada's gaming industry, though he raised concerns about compliance with federal banking and anti-money-laundering laws. Assad cited a previous instance involving Wynn, where issues with money transfer compliance led to a substantial fine. He expressed the need for clear safeguards to prevent similar occurrences under the proposed system.
More Business News
Technical Applications Still Unclear
Technical aspects of the regulation were a focal point in discussions, especially in terms of how funds could be transferred across different jurisdictions. Scott Scherer, representing Sightline Payments, explained that some systems already permit customers to move funds from Nevada-based wagering accounts to accounts in other jurisdictions.
Scherer raised concerns that the new regulation could unintentionally restrict this flexibility, especially for patrons who wish to use their funds after leaving Nevada. He emphasized that the language in the regulation should ensure clarity on this point to avoid inconveniencing tourists who deposit funds into Nevada accounts but then return to their home states and expect continued access.
Jennifer Carleton, chief legal officer for Sightline, highlighted that limiting the use of wagering accounts strictly within Nevada could put casino operators with properties in multiple states at a disadvantage. Carleton cautioned that the proposed regulation might inadvertently impact Nevada's competitiveness by making it less convenient for patrons accustomed to multi-state account flexibility. The industry ultimately hopes for regulations that would allow the transfer of funds across state lines, though Carleton expressed that the Nevada-only restriction could be a positive first step.
Jim Barbee, head of the technology division for the NGCB, clarified that while the technology supporting wagering accounts does not have geographical limitations, the proposed regulation's language specifically pertains to activities within Nevada. Barbee explained that patrons with a Nevada wagering account could, theoretically, fund the account from another location, such as Massachusetts, and withdraw funds there, but only for wagering.
However, spending the funds for non-gaming activities in another state, such as a vacation in Colorado, would remain restricted. Barbee noted that the regulation's intent is to expand convenience for Nevada patrons without fully opening cross-state usage of the funds for all types of purchases.
The industry is advocating for a future where wagering account funds could be used in a variety of locations, with the current Nevada-specific restriction seen as an incremental step. Carleton remarked that from a regulatory and technological standpoint, the ability to use funds across state lines aligns with consumer expectations and industry goals.
Hendrick echoed this sentiment, acknowledging that the direction of the industry is moving rapidly toward increased flexibility and cross-jurisdictional usability. He stressed the importance of incremental progress, with a focus on avoiding confusion for Nevada patrons eager to use their wagering accounts for purchases within the casino.
If the proposal is approved, the expanded use of wagering accounts would only apply to casinos with non-restricted licenses, meaning other restricted venues would remain ineligible for wagering accounts. This limitation reflects a cautious, gradual approach by Nevada regulators, who are aware of the industry's shifting demands but remain attentive to the challenges of compliance and responsible financial practices.
RELATED TOPICS: Business
Latest News
Most Read
Must Read
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Nevada Could Allow Gamblers to Use Winnings as Cash Alternative