Key Takeaways:
- The Nevada Gaming Control Board has implemented changes to its test lab procedures to speed up the approval process for new games and technology.
- The changes were made to help Nevada keep up with other states and to make it easier for gaming equipment developers to launch new products in the state.
- The board is also dealing with issues related to prediction markets and sports betting, including a legal fight with companies that are offering sports contracts in Nevada without proper regulation.
- The board has imposed fines on several casinos for violating anti-money laundering laws and is working to strengthen its regulations in this area.
- The new chairman of the board, Mike Dreitzer, brings a unique set of skills and experience to the role, having worked in the gaming industry for many years.
Introduction to the Nevada Gaming Control Board’s New Chairman
Mike Dreitzer, the new chairman of the Nevada Gaming Control Board, has been working to make changes to the agency’s test lab procedures to speed up the approval process for new games and technology. This is a significant step forward for the state, which has often lagged behind other states in adopting new gaming technology. Dreitzer, who has experience working in the gaming industry, recognized the need for change and has been working to implement it. As he stated, "I think it’s essential for regulators in any jurisdiction to work at a faster pace. When it came to lab matters and gaming technology, we weren’t moving at the speed of business." This change is expected to have a positive impact on the gaming industry in Nevada, allowing for new games and technology to be introduced more quickly.
The Need for Change
The need for change in the Nevada Gaming Control Board’s test lab procedures was evident. The state’s casino operators often launched new games in markets outside of Nevada first, due to the complicated and time-consuming approval process in the state. As Dreitzer noted, "The message was, ‘We’ll get to Nevada last because it’s just too complicated.’" This was a problem that needed to be addressed, and Dreitzer’s changes were welcomed by the Association of Gaming Equipment Manufacturers (AGEM). The organization’s executive director, Daron Dorsey, praised Dreitzer’s efforts, saying, "Mike is a person who not only understands the control board, its operation, and its mission, but also how the equipment companies operate." Dorsey also noted that the changes in the lab and processes in approving gaming equipment allow developers to include Nevada as part of national launches of new slot machines.
The Impact of the Changes
The changes made by Dreitzer have had a positive impact on the gaming industry in Nevada. The Association of Gaming Equipment Manufacturers (AGEM) has praised the changes, saying that they will allow developers to include Nevada in national launches of new slot machines. This is a significant benefit for suppliers, as it allows them to launch their products in multiple jurisdictions at the same time. As Dorsey stated, "Being able to hit multiple [jurisdictions] at the same time is a benefit to suppliers." The changes have also helped to streamline the regulatory process, making it easier for gaming equipment developers to get their products approved and onto the market.
The Fight Over Prediction Markets
One of the challenges that Dreitzer has faced in his new role is the fight over prediction markets. These markets have exploded in popularity and have threatened to cannibalize sports betting in Nevada. The companies offering these markets have eluded state regulation, and the battle is taking place in the courts. Dreitzer has taken a strong stance on the issue, saying that Nevada views sports event contracts as wagers that should be regulated and taxed by the state. As he stated, "There are decades of precedent that this is a states’ rights issue and Nevada is within its proper purview." The control board has also taken action against companies that have offered sports contracts in Nevada without proper regulation, including Kalshi and other federally regulated prediction markets.
Discipline for Brick-and-Mortar Casinos
In addition to dealing with the issue of prediction markets, Dreitzer has also had to discipline brick-and-mortar casinos for violating anti-money laundering laws. In November, the control board reached a stipulated settlement with Caesars Entertainment, in which the gaming company agreed to pay a $7.8 million fine to cover a five-count complaint. The fine followed $10.5 million paid by Resorts World Las Vegas in March and $8.5 million from MGM Resorts International in April over similar violations. Dreitzer noted that fines are important, but that the other part of the equation is having regulations that enable licensees to have better information so they can make better decisions about whether or not to allow certain individuals to play at their casinos.
Dreitzer’s Background and Experience
Dreitzer’s background and experience have been an asset in his new role as chairman of the Nevada Gaming Control Board. He has a unique set of skills, having worked in the gaming industry for many years, including as the CEO of a gaming equipment company. He has also worked as an executive with Mikohn Systems, president of Australia-based Ainsworth Game Technology’s North American division in Las Vegas, and as the chief operating officer of test lab and gaming consultant BMM Americas. As a licensed attorney, Dreitzer worked with his predecessor, Kirk Hendrick, in the attorney general’s office’s gaming division in the late 1990s. Hendrick praised Dreitzer’s experience and skills, saying, "Mike possesses a uniquely qualified vision for the technology division."
The Future of the Nevada Gaming Control Board
As Dreitzer looks to the future, he is focused on improving gaming technology, dealing with prediction markets, and making regulation more efficient. He is not thinking about the long-term future, but rather is focused on the present and the challenges that the board is facing. As he stated, "These are all things I’m focusing on. The future will take care of itself." Dreitzer’s term expires in January 2027, and he is expected to earn a full four-year term if Governor Lombardo is re-elected. For now, he is committed to making a positive impact on the gaming industry in Nevada and to ensuring that the state remains a leader in the industry. As he noted, "I believe that licensees want to do the right thing. Are there bad apples? Sure. It’s our job to use every tool we have to be able to root them out and to improve all of these areas."
