Gambling Bill for Entity Betting Fails to Get House Judiciary Committee’s Support
Senate Bill 346, which contains a proposal to allow private equity firms to place large bets in Nevada racing and sports betting arenas, failed to muster even a vote in Nevada’s House of Assembly Judiciary Committee last Friday.
The bill’s sponsor, Senator Greg Bower (R-Reno) stoically accepted the fact that the bill may have to wait until the slated legislative session for 2015. The bill’s failure to pass last Friday’s Judiciary Committee meeting denotes its exclusion from the committee’s line-up of bills for deliberation and discussions in the near future.
The bill had a good start, but met with a strong opposition coming from no less than the Nevada Gaming Control Board Chairman A.G. Burnett. The latter recently appeared before the Assembly Judiciary Committee, in which he voiced his disapproval over the proposed equity betting system.
Although the bill includes a provision that gives the Nevada Gaming Commission (NGC) authorization to institute rules in governing the so-called entity bettors, the concerns raised by NGCB Chairman Burnett, go beyond the need for regulatory measures to prevent money laundering, under age gambling and other acts of fraud.
Aside from violating the state’s law against “messenger betting”, which is the act of paying another person to place a wager in behalf of another bettor; it places regulators in a precarious position in case private investments electronically transferred by out-of-town investors become part of the proposed entity-betting scheme.
As Chairman Burnett sees it, the only way by which gaming regulators can trek such path safely and clearly, is for Congress to pass a law, or for the U.S. Department of Justice to issue a legal opinion that the wiring of money to Nevada’s racing or sports betting agencies, is lawful.