Sun Coverage
A request by two companies to share race and sports book revenue generated by kiosks in a tavern chain was approved today by the Nevada Gaming Commission after the proposal appeared doomed to failure.
In a 3-0 vote with one abstention, commissioners approved a license for Golden Route Operations LLC, which runs the PT’s Pub chain, to operate race and sports book kiosks developed by Leroy’s Race and Sports Place.
Until the last 15 minutes of a two-hour hearing, it appeared the plan would fail despite a recommendation for approval from the state Gaming Control Board on Sept. 8, as commissioners debated whether the kiosks complied with gaming policy that require players to access accounts in nonrestricted-licensed casinos.
The course of the debate changed when commissioners learned that the kiosks are already in operation at several locations and that the key element of the licensing under consideration was on the sharing of revenue.
But commissioners indicated the matter is far from over, only licensing the agreement through July 2013 so that industry representatives could weigh in on regulations and sports book policies.
At the Sept. 8 Control Board meeting, a representative of the Nevada Resorts Association questioned whether the proposal could be allowed under existing regulations.
Resorts Association President Virginia Valentine also told the Review-Journal earlier this week that the organization’s board of directors believes regulations require sports wagering to occur only within a traditional casino and that allowing sports betting in taverns, even through kiosks, is a game-changer for the industry.
Vic Salerno, CEO of American Wagering, the parent company of Leroy’s, was clearly upset when it appeared the deal with Golden Gaming was in jeopardy. He explained that allowing customers to sign up to play, make wagers and receive payments in kiosks in easy-to-access restricted locations is why the business model works.
“It has to be convenient,” he said. “But what you’re proposing is not a minor inconvenience. It’s a major obstacle. If you do this, it’s going to really stifle this industry. I can’t believe it. I’m very disappointed. We’re not a billion-dollar hotel.”
Salerno explained that the sophisticated kiosks have all the safeguards that enable an identification check for prospective players, cameras and software that can flag suspicious bets for managers to review.
But the question became whether race and sports wagering is allowable in taverns, a point that became moot when commissioners determined that similar systems already are in place.
In other business, the commission approved licensing for a Texas-based slot machine manufacturing company, bringing a new competitor into the market, and a waiver for a slot parlor affected by changes in controversial Regulation 3.015.
The commission approved a license for Multimedia Games Inc. of Austin, Texas, and the suitability and licenses for officers and board directors.
The company, which develops about 25 game titles a year and owns the Xtreme Sevens, Cash Quake, Fortune Teller and Meltdown series of slot machines, initially plans to open a showroom and sales office in Las Vegas and then evaluate whether it would devote technological resources here. Initially, the company would have about 20 employees in Southern Nevada.
The company works primarily with tribal casinos in Oklahoma, Washington and California and has no pending contracts in Nevada. It is projected to sell 1,000 machines this year.
Commissioners also approved its first request for a waiver from Regulation 3.015 in a unanimous vote on a restricted license for Miz Lola’s Holdings LLC.
Miz Lola’s uses a business model similar to that of the Dotty’s casino chain, which caters to older women with soft music, bright interiors and a homespun atmosphere.
The Control Board had recommended approval of the waiver in a 2-1 vote. The license is for 15 slot machines and a waiver from a requirement to provide a restaurant in the tavern on Blue Diamond Road in southwest Las Vegas. Miz Lola’s also got a waiver from a square-footage requirement.
Last month, after a series of hearings and meetings, the Gaming Commission amended Regulation 3.015 overseeing the licensing of bars and taverns. The revised regulation requires a permanent bar with seating for at least nine people, the operation of a restaurant and a minimum of 2,000 square feet with seating for at least 20 customers.
The Dotty’s chain was in the spotlight as an example of a company that would be directly affected by changes in the regulations, but Miz Lola’s and other companies execute a similar business model.