Gambling News | 20 Dec 2024

A modest but substantial extension of wagering accounts has been approved by the Nevada Gaming Commission.

With the approval of new uses for patron wagering accounts yesterday afternoon (19 December) by the Nevada Gaming Commission (NGC), gaming payment providers in Nevada achieved a triumph.
 Gambling barrier
 Following much discussion, the commission unanimously approved the long-awaited revisions to Regulation 5.225.  Winnings from wagering accounts could previously only be withdrawn from such accounts.  Now, though, customers can spend those points on anything they choose, provided it's at a licensed business in Nevada, or at a tenant or affiliate of that business.

 For instance, customers can now pay for their drinks and meals in the casino's bars and restaurants or at the gift shop using their wagering accounts.  Notably, this extension is exclusively applicable to licensees (casinos) that are not subject to any restrictions.  Wagering accounts cannot be offered by restricted licensees.

 Statistically, the shift is negligible.  However, in actuality, it's a major win for carriers and payment providers alike.  For a long time, casinos were slow to accept cashless payments.  This is because of the enormous regulatory and compliance challenges in the banking and casino industries, as well as their historical dependence on cash.  The process of transferring funds is laborious and costly.

 People used the term "intermediate" to designate this initial stage.  Providers would like to have all limitations removed because, in theory, customers pay for the accounts in advance, so they should have unlimited spending power, similar to a debit account.

 Water for account expansions was transported by Sightline.
 While advocating for the reform, Sightline Payments was the most forceful industry spokesperson.  Jennifer Carleton, chief legal officer for the provider, was there once again on Thursday. Throughout the past year and a half, the company has actively participated in all workshops and conversations pertaining to the matter.

 Commissioner Brian Krolicki raised some valid concerns about the necessity of the proposed modification.  "I simply don't get why this is even happening to us," he bemoaned.  "I have no idea how this will do in the marketplace."

 Carlton wasted no time in demonstrating how ineffective the present limitations are.  The money must be transferred out if patrons want to spend it for something else.  Transfer fees can add up to millions of dollars annually, and operators are the ones who have to pay them.  Carleton astutely pointed out that other markets have already done away with such limits; the thought that other states are inventing before Nevada authorities is repulsive to them.

 There are other states and jurisdictions that have given their clearance for them to proceed with the idea, and they have already inked deals with operators to implement it outside of Nevada, she added.

 Barbee was instrumental in promoting, elucidating
 Jim Barbee, head of the NGCB's technical section, was the state's leading voice in favour of the reform.

 He reiterated multiple times that the necessary technology to implement the modifications currently exists within providers; the only issue is that it has not yet received approval.  Additionally, he addressed enquiries concerning the transfer of funds and provided an overview of the accounts themselves.  Sightline expressed their gratitude to Barbee for his advocacy in a statement released after the ruling.

 Omer Sattar, CEO of Sightline, expressed his admiration for the Nevada Gaming Commission, the Gaming Control Board, and Chief Barbee for their efforts in revising Nevada Regulation 5.225. This change will enable gaming operators and their payment partners, such as Sightline, to introduce products that improve the casino customer experience.

 Opposition to checks and balances among commissioners
 What was interesting is that the idea itself was unrelated to the protracted argument that surrounded it.  Such an increase, according to the commissioners, is a modern-day no-brainer.  Rather, their disagreement pertained on a single paragraph concerning the approval process for future account uses.

 A clause for "any other uses approved by the chair" is inserted into the revised version of Regulation 5.225.  The person that chairs the Nevada Gaming Control Board is being referred to here.  Every single commissioner opposed this wording right from the beginning.  The unique dual-regulatory system in Nevada is characterised by the control board's day-to-day operations and the commission's ultimate decision-making power.  Commissioners were uneasy, despite staffers' claims that such wording is frequent.

 The chair of the commission, Jennifer Togliatti, expressed her concern that the purpose for which they were established—a statutory purpose—is gradually being undermined.  Additionally, she mentioned that the commission is "the last to know in a lot of regards" in her comments.

 In attendance was control board chair Kirk Hendrick, who made the argument that bureaucracy swiftly stifles creativity.

 It will take longer if the commission is involved in the day-to-day activities...  He confidently stated that the state will fall behind other states if the board was unable to advance the matter incrementally and repeatedly return to the commission with questions regarding the notion.

 Everything is OK to go, but please keep us informed of any changes to the account.
 Deputy attorney general John Michela, in the end, had a valid point.  Since the limits have already been set, he clarified, the head of the control board does not have final say over increasing account usage.  All transactions must take place at a licensee or tenant/affiliate of a licensee in Nevada, according to these conditions.

 According to Commissioner George Markantonis, who had a long career in the hotel sector before to his appointment, licensees would seize the chance.

 He predicted that all casinos would be eager to vote for it and would be pounding on doors to get it.  In the end, the item was greenlit, but only under certain conditions.  Togliatti asked for an update on the number of expansion requests and their processing status by December 2025.

 She made a joke about how it would be titled "Wagering Account Update" and how it would be on the agenda.