The Nevada Gaming Control Board (“Board”) will hold a workshop on May 23, 2024, to solicit comments on proposed amendments to Nevada Gaming Commission (“NGC”) Regulations regarding, without limitation, Regulations 5, 7A, 8, 9, 14, 16, 22, and 28.

Nevada Gaming Control Board Workshop: Proposed Changes

The items considered for action cover the breadth of Nevada’s gaming industry ranging from transaction reports to cybersecurity. Most of the proposed changes appear to be administrative “clean-up” items.

The most intriguing item is the proposed changes by PropSwap, Inc.[1] concerning the regulation of betting ticket resale providers. To address the increasingly popular and scrutinized betting ticket resale market, PropSwap has proposed regulatory changes to create the new category of service provider “betting ticket resale service provider.” The proposed changes would set out specific requirements for betting ticket resale service providers including, without limitation, the manner and method of transactions, prohibiting out of state transactions, prohibiting payments based on a percentage of revenue, and requiring the adoption of certain policies and procedures; and, in turn, clarify that betting ticket resale service providers do not engage in messenger betting if they comply with such requirements.

PropSwap previously appeared before the Gaming Control Board at a public workshop in March. At the workshop, PropSwap put forward a comprehensive presentation detailing the benefits its proposed regulatory amendments would bestow upon Nevada’s gaming industry. The Board members had numerous questions for PropSwap, with a majority of the questions revolving around whether the reselling of sports betting tickets is considered a second “wager” and subject to gaming taxation, and, if so, how the appropriate taxes would be calculated. Further, the Board inquired into the internal procedures the company had in place for KYC, AML, and patron disputes, etc. Overall, the Board wanted to get a sense of how the company operates in the 23 jurisdictions where it is currently live. Ultimately, the Board decided the proposal needed further vetting and this month’s workshop should offer insight as to whether the Board has gained a comfort level to regulate the ticket resale market.

The full agenda and manner in which public comments can be submitted on these items is available in this link.

[1] PropSwap Inc., is a company that allows users to buy and sell sports betting tickets. While they previously remained active for six (6) years in Nevada, they do not currently operate in Nevada.