Nevada Gaming Regulators To Look At Sportsbook House Rules

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The chairman of the Nevada Gaming Control Board called for forming a task force of industry leaders to examine sportsbooks’ house rules that are often at the center of patron disputes over payouts.

Task Force Proposal At The Gaming Law Conference

Kirk Hendrick, speaking Friday at the Gaming Law Conference hosted by the State Bar of Nevada during the all-day conference at the Palms Casino Resort in Las Vegas, brought up the idea of creating the task force in 2025. It was part of a wide-ranging discussion that included challenges the industry and regulators face dealing with cybersecurity, anti-money laundering, and technology.

Complexity Of House Rules

Hendrick told the audience that at one time, sportsbook house rules were easy to understand. Bettors could see them posted on the at the book.

“Does anybody have any idea how long house rules are today? They’re over 180 pages in some instances,” Hendrick replied. “A guy with a six-team parlay card and a dispute says he didn’t know about these esoteric issues. Well, they’re in the house rules on page 74. Go look them up. I’m interested in putting together a task force that looks into whether we can make house rules easier for everybody — not just for the operator, but for the patron. They shouldn’t be hidden. They should be online.”

Call For Standardized House Rules

Hendrick said house rules should be uniform enough so that the first 100 pages are the same for everybody, with tweaks to properties that might offer different bets. This is important, according to Hendrick, because house rules serve as a contract between the player and operator. “A 180-page contract with a guy trying to get down a $2 bet? We’ve got to do better.”

Role Of Sports And Entertainment In Gaming Revenue

Hendrick spoke about sports and entertainment becoming a big part of Las Vegas’s gaming industry and economic success.

“As we’ve seen recently, gaming revenue isn’t just tied to three-day weekends when Californians come in or a particular sporting event like a Super Bowl (when it’s not played in Las Vegas),” Hendrick said. “That was always a big deal. Now you can bet on the Super Bowl in a lot of different states. You don’t have to come to Nevada. We saw a difference in the Super Bowl when it was in Las Vegas. We saw a difference when Adele came here. We see a difference when Garth Brooks is here. It actually affects gaming revenue and the entire state budget.”

Cybersecurity And Technological Advancements

While house rules comprise one issue to be discussed by the Board, Hendrick said cybersecurity, anti-money laundering and technology are among the biggest issues facing the gaming industry. The goal is to keep Nevada at the forefront of the world of gaming, but and in order to do that, everything has to be focused on at one time.

“We don’t have a big enough budget to stay on top of all of these topics, so we rely on the industry and gaming attorneys to keep us apprised,” Hendrick said.

Collaboration With The Industry

“That’s how we try to stay ahead of it. We’re responsive. Our doors are always open and phones are always available. I always say we’re here to regulate, not to road block.”

Since a lot of manufacturers are based in Nevada, Hendrick noted it’s important to get products out as fast as possible, while protecting what he calls the big three issues: collecting the right amount of tax, providing patron integrity, and following Nevada public policy.

“In order to do that, we have to ensure our technology division is staying at the forefront of all the knowledge coming along with it. If other states are accepting technology faster than we are, it’s not affecting tax, not affecting the game, and not affecting Nevada public policy. We need to speed up and do it faster.”

Maintaining Nevada’s Gold Standard

Gaming attorney Erica Okerberg with the firm Greenberg Traurig, who moderated the discussion, said companies want to see Nevada stay at the forefront and be the gold standard. She asked Hendrick what needs to happen to stay in that position.

Hendrick has mixed feelings about that the gold standard and noted that next year is the 70th anniversary of the Nevada Gaming Control Board.

“Calling us the gold standard sometimes concerns me because a lot of other states and nations around the world are doing it very well. It’s a great thing to be called, but we have to be sure it doesn’t become the old standard. Mike Tyson is my favorite boxer of all time. He was the gold standard and a few weeks ago was the old standard. We have to make sure the Gaming Control Board provides the tools for the industry to keep doing what it’s doing.”

Responsible Use Of Artificial Intelligence

“Artificial intelligence is like any tool. A hammer it can do great things or bad things. We have to let the industry know about the guidelines on being sure that the tool is used effectively. If we can continue to do that, I’m happy to educate the other states.”

Need For Funding And Education

While Nevada spends a lot of time educating everyone else around the world on the Nevada gold standard, Hendrick said the state doesn’t always have the time and money “to educate our own people.”

He asked the audience that if they hear anything about Gov. Joe Lombardo’s budget for the Gaming Control Board, say that the Board needs the money.

“We can educate the rest of the world, but if we’re not educating ourselves, how do we continue to help the industry?”

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