(Reprinted with amendments adopted on April 15, 2025) FIRST REPRINT S.B. 203 - *SB203_R1* SENATE BILL NO. 203–SENATOR PAZINA FEBRUARY 12, 2025 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions relating to the pari-mutuel system of wagering. (BDR 41-608) FISCAL NOTE: Effect on Local Government: No. Effect on the State: No. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to gaming; removing and revising certain provisions relating to the pari-mutuel system of wagering; providing immunity from civil liability for certain agencies, entities and persons relating to the pari-mutuel system of wagering; defining certain terms relating to the pari-mutuel system of wagering; repealing certain provisions relating to the pari-mutuel system of wagering; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires the Nevada Gaming Commission to administer provisions 1 governing the issuance of licenses and to perform various acts relating to the 2 regulation and control of the pari-mutuel system of wagering. (Chapters 463 and 3 464 of NRS) Existing law: (1) authorizes the Nevada Gaming Control Board to 4 approve an agreement for a disseminator to disseminate a live broadcast from a 5 track where horse or other racing for pari-mutuel wagering is conducted; and (2) 6 establishes a statutory scheme governing the dissemination of live broadcasts and 7 certain information concerning racing. (NRS 463.421-463.427, 463.430-463.480) 8 Section 1.7 of this bill removes the provisions relating to disseminators and instead 9 authorizes a track to directly enter into an agreement with an operator of a race 10 book, sports pool or gambling game. Sections 1-1.3 and 1.6 of this bill make 11 conforming changes to eliminate references to disseminators, and section 2.9 of 12 this bill repeals the relevant provisions of existing law referencing disseminators 13 and the current statutory scheme governing the dissemination of live broadcasts. 14 Section 1.8 of this bill revises the term “service provider” to include an 15 “operator of a system,” as defined by section 2.1 of this bill, for purposes of 16 registering such operators with the Board rather than requiring the operators to be 17 licensed by the Commission. Section 2.9 repeals the corresponding provision 18 governing fees paid by an operator of a system, and sections 1.4 and 1.5 of this bill 19 make conforming changes to remove references to the repealed fees. 20 – 2 – - *SB203_R1* Section 2 of this bill provides that the State of Nevada, the Commission, the 21 Board, the Off-Track Pari-Mutuel Wagering Committee and certain other persons 22 are immune from civil liability for any decision or action taken in good faith and 23 without malicious intent in carrying out the provisions of law relating to the pari-24 mutuel system of wagering. Section 2.1 defines certain terms for purposes of the 25 pari-mutuel system of wagering and, sections 2.4, 2.6 and 2.7 of this bill make 26 conforming changes to incorporate those terms. 27 Existing law requires certain persons who operate, carry on, conduct or 28 maintain any form of wagering under the pari-mutuel system of wagering to be 29 licensed. (NRS 464.010) Section 2.2 of this bill additionally provides that such 30 persons may be found suitable, registered or approved for such purposes. Sections 31 2.5 and 2.8 of this bill make conforming changes to incorporate the changes 32 allowing for registration. 33 Section 2.3 of this bill provides that neither the off-track pari-mutuel system 34 nor the operator of a system must be physically present in this State under certain 35 circumstances. 36 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 463.0157 is hereby amended to read as 1 follows: 2 463.0157 1. “Gaming employee” means any employee, 3 temporary employee or other representative of an operator of a slot 4 route, the operator of a pari-mutuel system, the operator of an inter-5 casino linked system or a manufacturer, distributor or disseminator, 6 or a gaming establishment licensed to conduct any game, 16 or more 7 slot machines, a race book, sports pool or pari-mutuel wagering, 8 whose job duties pertain to the operation, control or outcome of any 9 gambling game or the access, transport or review of any gaming 10 revenue, including, without limitation: 11 (a) Accounting or internal auditing personnel who are directly 12 involved in any recordkeeping or the examination of records 13 associated with revenue from gaming; 14 (b) Table games personnel; 15 (c) Cage and counting room personnel; 16 (d) Slot personnel; 17 (e) Keno personnel; 18 (f) Race book and sports pool personnel; 19 (g) Employees of a person required by NRS 464.010 to be 20 [licensed] registered to operate an off-track pari-mutuel system; 21 (h) [Employees of a person required by NRS 463.430 to be 22 licensed to disseminate information concerning racing and 23 employees of an affiliate of such a person involved in assisting the 24 person in carrying out the duties of the person in this State; 25 – 3 – - *SB203_R1* (i)] Employees of a person required by paragraph (e) of 1 subsection 1 of NRS 463.160 to be registered to operate as a cash 2 access and wagering instrument service provider; 3 [(j)] (i) Employees whose duties are directly involved with the 4 manufacture, repair, sale or distribution of gaming devices, 5 associated equipment when the employer is required by NRS 6 463.650 to be licensed, cashless wagering systems or interactive 7 gaming systems; 8 [(k)] (j) Employees of operators of interactive gaming systems 9 whose duties include the operational or supervisory control of the 10 systems or the games that are part of the systems; 11 [(l)] (k) Employees of operators of call centers who perform, or 12 who supervise the performance of, the function of receiving and 13 transmitting wagering instructions; 14 [(m)] (l) Employees who have access to the Board’s system of 15 records for the purpose of processing the registrations of gaming 16 employees that a licensee is required to perform pursuant to the 17 provisions of this chapter and any regulations adopted pursuant 18 thereto; 19 [(n)] (m) Information technology personnel who have 20 operational or supervisory control over information technology 21 systems associated with any of the matters related to gaming 22 described in this subsection; 23 [(o)] (n) Hosts or other persons empowered to extend credit or 24 complimentary services related to gaming; 25 [(p)] (o) Machine mechanics; 26 [(q)] (p) Odds makers and line setters; 27 [(r)] (q) Security personnel; 28 [(s)] (r) Shift or pit bosses; 29 [(t)] (s) Shills; 30 [(u)] (t) Supervisors or managers whose duties include the 31 supervision of employees described in this subsection; 32 [(v)] (u) Employees of a person required by NRS 463.160 to be 33 licensed to operate an information service; 34 [(w)] (v) Club venue employees; and 35 [(x)] (w) Other persons whose duties are similar to the 36 classifications set forth in paragraphs (a) to [(w),] (v), inclusive, as 37 the Commission may from time to time designate by regulation. 38 2. “Gaming employee” does not include employees whose 39 duties do not involve gaming activities, persons engaged exclusively 40 in preparing or serving food or beverages or persons involved 41 primarily in the resort or hotel functions of a licensed gaming 42 establishment. 43 – 4 – - *SB203_R1* Sec. 1.1. NRS 463.0165 is hereby amended to read as follows: 1 463.0165 “License” means a gaming license [,] or a 2 manufacturer’s or distributor’s license . [, a license issued to a 3 disseminator of information concerning racing or a license issued to 4 an operator of an off-track pari-mutuel system.] 5 Sec. 1.2. NRS 463.0167 is hereby amended to read as follows: 6 463.0167 “License fees” means any money required by law to 7 be paid to obtain or renew a gaming license [,] or manufacturer’s or 8 distributor’s license . [or license issued to an operator of an off-track 9 pari-mutuel system. The term also includes the fees paid by a 10 disseminator of information concerning racing.] 11 Sec. 1.3. NRS 463.0171 is hereby amended to read as follows: 12 463.0171 “Licensee” means any person to whom a valid 13 gaming license [,] or a manufacturer’s or distributor’s license [, 14 license for the operation of an off-track pari-mutuel system or 15 license for dissemination of information concerning racing] has 16 been issued. 17 Sec. 1.4. NRS 463.270 is hereby amended to read as follows: 18 463.270 1. Subject to the power of the Commission to deny, 19 revoke, suspend, condition or limit licenses, any state license in 20 force may be renewed by the Commission for the next succeeding 21 license period upon proper application for renewal and payment of 22 state license fees and taxes as required by law and the regulations of 23 the Commission. 24 2. All state gaming licenses are subject to renewal on the first 25 day of each January and all quarterly state gaming licenses on the 26 first day of each calendar quarter thereafter. 27 3. Application for renewal must be filed with the Commission, 28 and all state license fees and taxes required by law, including, 29 without limitation, NRS 368A.200, 463.370, 463.373 to 463.3855, 30 inclusive, 463.660 [, 464.015] and 464.040, must be paid to the 31 Board on or before the dates respectively provided by law for each 32 fee or tax. 33 4. Application for renewal of licenses for slot machines only 34 must be made by the operators of the locations where such machines 35 are situated. 36 5. Any person failing to pay any state license fees or taxes due 37 at the times respectively provided shall pay in addition to such 38 license fees or taxes a penalty of not less than $50 or 25 percent of 39 the amount due, whichever is the greater, but not more than $1,000 40 if the fees or taxes are less than 10 days late and in no case in excess 41 of $5,000. The penalty must be collected as are other charges, 42 license fees and penalties under this chapter. 43 6. Any person who operates, carries on or exposes for play any 44 gambling game, gaming device or slot machine or who 45 – 5 – - *SB203_R1* manufactures, sells or distributes any gaming device, equipment, 1 material or machine used in gaming after the person’s license 2 becomes subject to renewal, and thereafter fails to apply for renewal 3 as provided in this section, is guilty of a misdemeanor and, in 4 addition to the penalties provided by law, is liable to the State of 5 Nevada for all license fees, taxes and penalties which would have 6 been due upon application for renewal. 7 7. If any licensee or other person fails to renew his or her 8 license as provided in this section, the Commission may order the 9 immediate closure of all his or her gaming activity until the license 10 is renewed by the payment of the necessary fees, taxes, interest and 11 any penalties. Except for a license for which fees are based on the 12 gross revenue of the licensee, failure to renew a license within 30 13 days after the date required by this chapter shall be deemed a 14 surrender of the license. 15 8. The voluntary surrender of a license by a licensee does not 16 become effective until accepted in the manner provided in the 17 regulations of the Commission. The surrender of a license does not 18 relieve the former licensee of any penalties, fines, fees, taxes or 19 interest due. 20 Sec. 1.5. NRS 463.386 is hereby amended to read as follows: 21 463.386 1. If the Commission approves the issuance of a 22 license for gaming operations at the same location that is currently 23 licensed, or locations that are currently licensed if the license is for 24 the operation of a slot machine route, the Chair of the Board, in 25 consultation with the Chair of the Commission may administratively 26 determine that, for the purposes of NRS 463.370, 463.373 to 27 463.3855, inclusive, [463.450,] 463.660, 463.677, 463.760 [,] and 28 463.765 , [and 464.015,] the gaming license shall be deemed 29 transferred, the previously licensed operation shall be deemed a 30 continuing operation and credit must be granted for prepaid license 31 fees, if the Chair of the Board makes a written finding that such 32 determination is consistent with the public policy of this State 33 pursuant to NRS 463.0129. 34 2. The Chair of the Board may refer a request for 35 administrative determination pursuant to this section to the Board 36 and the Commission for consideration, or may deny the request for 37 any reasonable cause. A denial may be submitted for review by the 38 Board and the Commission in the manner set forth by the 39 regulations adopted by the Commission which pertain to the review 40 of administrative approval decisions. 41 3. Except as otherwise provided in this section, no credit or 42 refund of fees or taxes may be made because a gaming 43 establishment ceases operation. 44 – 6 – - *SB203_R1* 4. The Commission may, with the advice and assistance of the 1 Board, adopt regulations consistent with the policy, objects and 2 purposes of this chapter as it may deem necessary to carry out the 3 provisions of this section. 4 Sec. 1.6. NRS 463.400 is hereby amended to read as follows: 5 463.400 Any person who willfully fails to report, pay or 6 truthfully account for and pay over the license fees imposed by NRS 7 463.370, 463.373 to 463.3855, inclusive, 463.390 [, 463.450] and 8 463.760 to 463.775, inclusive, or willfully attempts in any manner 9 to evade or defeat any such tax or payment thereof, or any licensee 10 who puts additional games into play without authority of the 11 Commission to do so or any licensee who fails to remit any license 12 fee provided for by this chapter when due is in addition to the 13 amount due liable for a penalty of the amount of the license fee 14 evaded or not paid, collected or paid over. The penalty must be 15 assessed and collected in the same manner as are other charges, 16 license fees and penalties under this chapter. 17 Sec. 1.7. NRS 463.426 is hereby amended to read as follows: 18 463.426 1. The Board may [: 19 1. Authorize] authorize a [disseminator] track or an 20 authorized agent or representative of a track to enter into an 21 agreement with [a track to disseminate to] users to provide a live 22 broadcast [which is received] from the track. Any such agreement 23 must require that all users pay the same rate or fee for the right to 24 receive the live broadcast. This section does not apply to a live 25 broadcast that is furnished to users in connection with an 26 agreement that allows users to participate in off-track pari-mutuel 27 wagering at the track pursuant to chapter 464 of NRS. 28 2. [Establish fees to be paid by a disseminator of a live 29 broadcast in an amount which is equal to the cost of carrying out the 30 provisions of NRS 463.421 to 463.427, inclusive.] As used in this 31 section: 32 (a) “Live broadcast” means an audio and video transmission 33 of a race, or series of races, as it occurs at a track and which is 34 furnished by a track to a user for a fee. 35 (b) “Track” means a facility licensed to operate horse or other 36 racing where pari-mutuel wagering on races is conducted. 37 (c) “User” means an operator of a race book, sports pool or 38 gambling game who is licensed in this State and receives and 39 displays a live broadcast within this State and uses information 40 contained in the broadcast to determine winners of or payoffs on 41 wagers the operator accepts. 42 Sec. 1.8. NRS 463.677 is hereby amended to read as follows: 43 463.677 1. The Legislature finds that: 44 – 7 – - *SB203_R1* (a) Technological advances have evolved which allow licensed 1 gaming establishments to expose games, including, without 2 limitation, system-based and system-supported games, gaming 3 devices, interactive gaming, cashless wagering systems or race 4 books and sports pools, and to be assisted by an interactive gaming 5 service provider or a service provider, as applicable, who provides 6 important services to the public with regard to the conduct and 7 exposure of such games. 8 (b) To protect and promote the health, safety, morals, good 9 order and general welfare of the inhabitants of this State, and to 10 carry out the public policy declared in NRS 463.0129, it is necessary 11 that the Board and Commission have the ability to: 12 (1) License interactive gaming service providers; 13 (2) Register service providers; and 14 (3) Maintain strict regulation and control of the operation of 15 such interactive gaming service providers or service providers, 16 respectively, and all persons and locations associated therewith. 17 2. Except as otherwise provided in subsection 4, the 18 Commission may, with the advice and assistance of the Board, 19 provide by regulation for the: 20 (a) Licensing of an interactive gaming service provider; 21 (b) Registration of a service provider; and 22 (c) Operation of such a service provider or interactive gaming 23 service provider, respectively, and all persons, locations and matters 24 associated therewith. 25 3. The regulations pursuant to subsection 2 may include, 26 without limitation: 27 (a) Provisions requiring: 28 (1) The interactive gaming service provider to meet the 29 qualifications for licensing pursuant to NRS 463.170, in addition to 30 any other qualifications established by the Commission and to be 31 licensed regardless of whether the interactive gaming service 32 provider holds any license. 33 (2) The service provider to be registered regardless of 34 whether the service provider holds any license. 35 (b) Criteria regarding the location from which the interactive 36 gaming service provider or service provider, respectively, conducts 37 its operations, including, without limitation, minimum internal and 38 operational control standards established by the Commission. 39 (c) Provisions relating to: 40 (1) The licensing of persons owning or operating an 41 interactive gaming service provider, and any person having a 42 significant involvement therewith, as determined by the 43 Commission. 44 – 8 – - *SB203_R1* (2) The registration of persons owning or operating a service 1 provider, and any persons having a significant involvement 2 therewith, as determined by the Commission. 3 (d) A provision that a person owning, operating or having 4 significant involvement with an interactive gaming service provider 5 or a service provider, respectively, as determined by the 6 Commission, may be required by the Commission to be found 7 suitable to be associated with licensed gaming, including race book 8 or sports pool operations. 9 (e) Additional matters which the Commission deems necessary 10 and appropriate to carry out the provisions of this section and which 11 are consistent with the public policy of this State pursuant to NRS 12 463.0129, including that an interactive gaming service provider or a 13 service provider, respectively, must be liable to the licensee on 14 whose behalf the services are provided for the interactive gaming 15 service provider’s or service provider’s proportionate share of the 16 fees and taxes paid by the licensee. 17 4. The Commission may not adopt regulations pursuant to this 18 section until the Commission first determines that interactive 19 gaming service providers or service providers, respectively, are 20 secure and reliable, do not pose a threat to the integrity of gaming 21 and are consistent with the public policy of this State pursuant to 22 NRS 463.0129. 23 5. Subject to any regulations adopted by the Commission 24 pursuant to subsection 6, the premises on which an interactive 25 gaming service provider or a service provider conducts its 26 operations are subject to the power and authority of the Board and 27 Commission pursuant to NRS 463.140, as though the premises are 28 where gaming is conducted and the interactive gaming service 29 provider or service provider, respectively, is a gaming licensee. 30 6. The Commission may adopt regulations that define the 31 scope of the power and authority of the Board and Commission 32 provided in subsection 5 as it deems appropriate based on the type 33 and function of a specific interactive gaming service provider or 34 service provider. 35 7. As used in this section: 36 (a) “Interactive gaming service provider” means a person who 37 acts on behalf of an establishment licensed to operate interactive 38 gaming and: 39 (1) Manages, administers or controls wagers that are 40 initiated, received or made on an interactive gaming system; 41 (2) Manages, administers or controls the games with which 42 wagers that are initiated, received or made on an interactive gaming 43 system are associated; 44 – 9 – - *SB203_R1* (3) Maintains or operates the software or hardware of an 1 interactive gaming system; or 2 (4) Provides products, services, information or assets to an 3 establishment licensed to operate interactive gaming and receives 4 therefor a percentage of gaming revenue from the establishment’s 5 interactive gaming system. 6 (b) “Service provider” means a person who: 7 (1) Is a cash access and wagering instrument service 8 provider; [or] 9 (2) Is an operator of a system as defined in subsection 7 of 10 NRS 464.005; or 11 (3) Meets such other or additional criteria as the Commission 12 may establish by regulation. 13 Sec. 2. Chapter 464 of NRS is hereby amended by adding 14 thereto a new section to read as follows: 15 In addition to any other rights, privileges and immunities 16 recognized by law, the State of Nevada, the Commission and any 17 of its members, employees, attorneys and other personnel, the 18 Board and any of its members, employees, attorneys and other 19 personnel, and the Off-Track Pari-Mutuel Wagering Committee 20 appointed pursuant to NRS 464.020 and any of its members, 21 employees, attorneys and other personnel are immune from civil 22 liability for any decision or action taken in good faith and without 23 malicious intent in carrying out the provisions of this chapter. 24 Sec. 2.1. NRS 464.005 is hereby amended to read as follows: 25 464.005 As used in this chapter, unless the context otherwise 26 requires: 27 1. “Board” means the Nevada Gaming Control Board. 28 2. “Commission” means the Nevada Gaming Commission. 29 3. “Gross revenue” means the amount of the commission 30 received by a [licensee] licensed book that is deducted from off-31 track pari-mutuel wagering, plus breakage and the face amount of 32 unpaid winning tickets that remain unpaid for a period specified by 33 the [Nevada Gaming] Commission. 34 4. “Licensed book” means a race book or sports pool licensed 35 to operate, carry on, conduct or maintain any form of wagering 36 under a pari-mutuel system of wagering pursuant to this chapter. 37 [2.] 5. “Off-track pari-mutuel system” means a computerized 38 system, or component of such a system, that is used with regard to a 39 pari-mutuel pool to transmit information such as amounts wagered, 40 odds and payoffs on races, sporting events or other events. 41 [3.] 6. “Off-track pari-mutuel wagering” means any pari-42 mutuel system of wagering approved by the [Nevada Gaming] 43 Commission for the acceptance of wagers on: 44 (a) Horse or dog races which take place outside of this state; 45 – 10 – - *SB203_R1* (b) Sporting events; or 1 (c) Other events. 2 [4.] 7. “Operator of a system” means a person engaged in 3 providing an off-track pari-mutuel system. An operator of a system 4 shall be deemed a service provider as set forth in NRS 463.677 and 5 is subject to any applicable regulations adopted by the 6 Commission. 7 [5.] 8. “Pari-mutuel system of wagering” means any system 8 whereby wagers with respect to the outcome of a race, sporting 9 event or other event are placed in a wagering pool conducted by a 10 person licensed or otherwise permitted to do so under state law, and 11 in which the participants are wagering with each other and not 12 against that person. The term includes off-track pari-mutuel 13 wagering. 14 Sec. 2.2. NRS 464.010 is hereby amended to read as follows: 15 464.010 1. It is unlawful for any person, either as owner, 16 lessee or employee, whether for hire or not, to operate, carry on, 17 conduct or maintain in this state, any form of wagering under the 18 pari-mutuel system on any racing, sporting event or other event 19 without having first procured and maintained all required federal, 20 state, county and municipal licenses [.] , findings of suitability, 21 registrations and approvals. 22 2. It is unlawful for any person to function as an operator of a 23 system without having first [obtained a state gaming license.] 24 registered with the Board as a service provider pursuant to 25 NRS 463.677. 26 3. Where any other state license , registration or approval is 27 required to conduct a racing, sporting event or other event, that 28 license , registration or approval must first be procured before the 29 pari-mutuel system of wagering may be licensed in connection 30 therewith. 31 Sec. 2.3. NRS 464.020 is hereby amended to read as follows: 32 464.020 1. The [Nevada Gaming] Commission is charged 33 with the administration of this chapter for the protection of the 34 public and in the public interest. 35 2. The [Nevada Gaming] Commission may issue licenses 36 permitting the conduct of the pari-mutuel system of wagering, 37 including off-track pari-mutuel wagering, and may adopt, amend 38 and repeal regulations relating to the conduct of such wagering. 39 3. The wagering must be conducted only by [the licensee] a 40 licensed book at the times determined by the [Nevada Gaming] 41 Commission and only: 42 (a) Within the enclosure wherein the race, sporting event or 43 other event which is the subject of the wagering occurs; or 44 – 11 – - *SB203_R1* (b) Within a licensed gaming establishment which has been 1 approved to conduct off-track pari-mutuel wagering. 2 This subsection [does] and the provisions of NRS 464.060 do not 3 prohibit a [person] licensed [to accept, pursuant to regulations 4 adopted by the Nevada Gaming Commission, off-track pari-mutuel 5 wagers] book from accepting wagers made by wire communication 6 from patrons within the State of Nevada, from other states in which 7 such wagering is legal or from places outside the United States in 8 which such wagering is legal. Neither the off-track pari-mutuel 9 system nor the operator of a system must be physically present in 10 this State provided that each is present in another state or location 11 outside of the United States where off-track pari-mutuel wagering 12 is legal and is licensed or otherwise approved by a governmental 13 authority having regulatory jurisdiction or control over pari-14 mutuel wagering. 15 4. The regulations of the [Nevada Gaming] Commission may 16 include, without limitation: 17 (a) Requiring fingerprinting of an applicant or licensee, or other 18 method of identification. 19 (b) Requiring information concerning an applicant’s 20 antecedents, habits and character. 21 (c) Prescribing the method and form of application which any 22 applicant for a license issued pursuant to this chapter must follow 23 and complete before consideration of the applicant’s application by 24 the [Nevada Gaming] Commission. 25 (d) Prescribing the permissible communications technology and 26 requiring the implementation of border control technology that will 27 ensure that a person cannot place a wager with a licensee in this 28 State from another state or another location where placing such a 29 wager is illegal. 30 5. The [Nevada Gaming] Commission may appoint an Off-31 Track Pari-Mutuel Wagering Committee consisting of 11 persons 32 who are licensed to engage in off-track pari-mutuel wagering. If the 33 Commission appoints such a Committee, it shall appoint to the 34 Committee: 35 (a) Five members from a list of nominees provided by the State 36 Association of Gaming Establishments whose members collectively 37 paid the most gross revenue fees to the State pursuant to NRS 38 463.370 in the preceding year; 39 (b) Three members who, in the preceding year, paid gross 40 revenue fees pursuant to NRS 463.370 in an amount that was less 41 than the average amount of gross revenue fees paid by licensees 42 engaged in off-track pari-mutuel wagering in the preceding year; 43 and 44 (c) Three other members. 45 – 12 – - *SB203_R1* If a vacancy occurs in a position on the Committee for any 1 reason, including, but not limited to, termination of a member, the 2 Commission shall appoint a successor member who satisfies the 3 same criteria in paragraph (a), (b) or (c) that applied to the member 4 whose position has been vacated. 5 6. If the [Nevada Gaming] Commission appoints [an Off-Track 6 Pari-Mutuel Wagering] a Committee pursuant to subsection 5, the 7 Commission shall: 8 (a) Grant to the [Off-Track Pari-Mutuel Wagering] Committee 9 the exclusive right to negotiate an agreement relating to off-track 10 pari-mutuel wagering with: 11 (1) A person who is licensed or otherwise permitted to 12 operate a wagering pool in another state; and 13 (2) A person who is [licensed] registered pursuant to this 14 chapter as an operator of a system. 15 (b) Require that any agreement negotiated by the [Off-Track 16 Pari-Mutuel Wagering] Committee with a track relating to off-track 17 pari-mutuel wagering must not set a different rate for intrastate 18 wagers placed on the licensed premises of a [race] licensed book 19 and wagers placed through the use of communications technology. 20 (c) Require the [Off-Track Pari-Mutuel Wagering] Committee to 21 grant to each person licensed pursuant to this chapter to operate an 22 off-track pari-mutuel race pool the right to receive, on a fair and 23 equitable basis, all services concerning wagering in such a race pool 24 that the Committee has negotiated to bring into or provide within 25 this State. 26 7. The [Nevada Gaming] Commission shall, and it is granted 27 the power to, demand access to and inspect all books and records of 28 any person licensed pursuant to this chapter pertaining to and 29 affecting the subject of the license. 30 Sec. 2.4. NRS 464.025 is hereby amended to read as follows: 31 464.025 1. The [Nevada Gaming] Commission, upon the 32 recommendation of the [Nevada Gaming Control] Board, may adopt 33 regulations for: 34 (a) The conduct by a [licensee of] licensed book offering off-35 track pari-mutuel wagering on a race, sporting event or other event; 36 and 37 (b) The approval of the terms and conditions of any agreement 38 between a [licensee] licensed book and an agency of the state in 39 which the race, sporting event or other event takes place or a person 40 licensed or approved by that state to participate in the conduct of the 41 race, sporting event or other event or the pari-mutuel system of 42 wagering thereon. 43 2. A person or governmental agency must not receive any 44 commission or otherwise share in the revenue from the conduct of 45 – 13 – - *SB203_R1* off-track pari-mutuel wagering in this State without the approval of 1 the [Nevada Gaming] Commission. The Commission may approve 2 any person or governmental agency after such investigation as the 3 [Nevada Gaming Control] Board deems proper. 4 Sec. 2.5. NRS 464.040 is hereby amended to read as follows: 5 464.040 1. The total commission deducted from pari-mutuel 6 wagering other than off-track pari-mutuel wagering by any licensee 7 licensed pursuant to the provisions of this chapter must not exceed 8 18 percent of the gross amount of money handled in each pari-9 mutuel pool operated by the licensee during the period of the 10 license. 11 2. The total commission deducted from off-track pari-mutuel 12 wagering must be determined by the [Nevada Gaming] Commission 13 and may be divided between the persons licensed , registered or 14 approved to participate in the conduct of the race or event or the 15 pari-mutuel system of wagering thereon. Such licensure , 16 registration or approval must be obtained pursuant to this chapter or 17 chapter 463 of NRS and pursuant to regulations which may be 18 adopted by the [Nevada Gaming] Commission. 19 3. Except as otherwise provided in NRS 464.045 for off-track 20 pari-mutuel wagering, each licensee shall pay to the [Nevada 21 Gaming] Commission quarterly on or before the last day of the first 22 month of the following quarter of operation for the use of the State 23 of Nevada a tax at the rate of 3 percent on the total amount of 24 money wagered on any race, sporting event or other event. 25 4. The licensee may deduct odd cents less than 10 cents per 26 dollar in paying bets. 27 5. Except as otherwise provided in NRS 464.045 for off-track 28 pari-mutuel wagering, the amount paid to the [Nevada Gaming] 29 Commission must be, after deducting costs of administration which 30 must not exceed 5 percent of the amount collected, paid over by the 31 [Nevada Gaming] Commission to the State Treasurer for deposit in 32 the State General Fund. 33 Sec. 2.6. NRS 464.060 is hereby amended to read as follows: 34 464.060 [All] Except as otherwise provided in subsection 3 of 35 NRS 464.020, all other forms of wagering or betting on the results 36 of any of the races or events licensed under this chapter outside the 37 enclosure or establishment where the races, events or off-track pari-38 mutuel wagering are licensed by the [Nevada Gaming] Commission 39 are illegal. 40 Sec. 2.7. NRS 464.075 is hereby amended to read as follows: 41 464.075 1. Except as otherwise provided in subsection 4, a 42 person who is licensed to engage in off-track pari-mutuel wagering 43 shall not: 44 – 14 – - *SB203_R1* (a) Accept from a patron less than the full face value of an off-1 track pari-mutuel wager; 2 (b) Agree to refund or rebate to a patron any portion or 3 percentage of the full face value of an off-track pari-mutuel wager; 4 or 5 (c) Increase the payoff of, or pay a bonus on, a winning off-track 6 pari-mutuel wager. 7 2. A person who is licensed to engage in off-track pari-mutuel 8 wagering and who: 9 (a) Attempts to evade the provisions of subsection 1 by offering 10 to a patron a wager that is not posted and offered to all patrons; or 11 (b) Otherwise violates the provisions of subsection 1, 12 is subject to the investigatory and disciplinary proceedings that 13 are set forth in NRS 463.310 to 463.318, inclusive, and shall be 14 punished as provided in those sections. 15 3. The [Nevada Gaming] Commission shall adopt regulations 16 to carry out the provisions of subsections 1 and 2 of this section. 17 4. The [Nevada Gaming] Commission may, by regulation, 18 exempt certain bets, refunds, rebates, payoffs or bonuses from the 19 provisions of subsection 1 if the Commission determines that such 20 exemptions are in the best interests of the State of Nevada and 21 licensed gaming in this state. Any bets, refunds, rebates, payoffs or 22 bonuses that would result in the amount of such bets, refunds, 23 rebates, payoffs or bonuses being directly or indirectly deductible 24 from gross revenue may not be exempt. 25 Sec. 2.8. NRS 464.080 is hereby amended to read as follows: 26 464.080 1. All licenses and registrations granted under this 27 chapter are subject to suspension or revocation by the [Nevada 28 Gaming] Commission in any case where the [Nevada Gaming] 29 Commission has reason to believe that any condition of its license 30 has not been complied with or that any law or regulation of the 31 [Nevada Gaming] Commission has been broken or violated. 32 2. [No] A license or registration may not be revoked or 33 suspended until after a hearing had by the [Nevada Gaming] 34 Commission. Such a hearing must be initiated by the filing of a 35 complaint by the [Nevada Gaming Control] Board and must be 36 conducted in accordance with the provisions of NRS 463.312 to 37 463.3145, inclusive. 38 3. The action of the [Nevada Gaming] Commission in revoking 39 or suspending a license or registration issued under this chapter is 40 subject to court review in accordance with the provisions of NRS 41 463.315 to 463.318, inclusive. 42 Sec. 2.9. NRS 463.0147, 463.421, 463.4212, 463.4214, 43 463.4216, 463.4218, 463.422, 463.423, 463.424, 463.425, 463.427, 44 – 15 – - *SB203_R1* 463.430, 463.435, 463.440, 463.445, 463.450, 463.460, 463.462, 1 463.464, 463.466, 463.480 and 464.015 are hereby repealed. 2 Sec. 3. This act becomes effective upon passage and approval. 3 LEADLINES OF REPEALED SECTIONS 463.0147 “Disseminator” defined. 463.421 Definitions. 463.4212 “Live broadcast” defined. 463.4214 “Racing meet” defined. 463.4216 “Track” defined. 463.4218 “User” defined. 463.422 Proposal by disseminator for exclusive right to disseminate live broadcast for racing meet; determination of necessity of hearing; notice; determination without hearing. 463.423 Hearing panel: Appointment; qualifications; expenses; agreements for services; additional personnel. 463.424 Procedure at hearing; submission of recommendation to Board; action on recommendation; regulations for contents of proposals. 463.425 Administrative review of decision of Board. 463.427 Unauthorized use or dissemination of live broadcast prohibited. 463.430 Unlawful to disseminate information without license; exceptions. 463.435 Renewal of license: Application to include information relating to state business license; denial of renewal for unpaid debt assigned to State Controller for collection. 463.440 Regulation and control of dissemination of information: Public policy of State; power of Commission; regulations. 463.445 Control of rates charged by disseminator; report of financial information. 463.450 Fees: Amount; collection; overpayment or underpayment; deposit in State General Fund. 463.460 Licensee to furnish information without discrimination. 463.462 Payment of child support: Statement by applicant for license; grounds for denial of license; duty of Commission. 463.464 Suspension of license for failure to pay child support or comply with certain subpoenas or warrants; reinstatement of license. – 16 – - *SB203_R1* 463.466 Application for license to include social security number of applicant. 463.480 Penalty. 464.015 Fee for issuance or renewal of license; disposition. 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