Nevada Online Poker Regulation Details

December 24, 2011
Nevada Online Poker Regulation Details

Nevada made history yesterday the Nevada Gaming Control Board passed online poker regulations.  These regulations will allow online poker to players located within the State of Nevada.  The regulations were released today.  There were no real surprises in the report.

There will be three types of licenses produced:

  • Manufacturers of interactive gaming systems – Covers those companies that are involved in the manufacturing of online gaming systems.
  • Operator of interactive gaming – License will be for companies that actually accept wagers online.
  • Service providers – The service providers license allows companies to provide platforms to companies that do not wish to develop their own software.  This would be similar to how a poker network licenses skins on their network.

There are also three classes of licenses.  This is taken directly from the regulations:

  • (a) Except as provided in subsection 3(c), a class 1 service provider is the following: (i) Any interactive gaming service provider; (ii) Any service provider who receives payments based on earnings or profits from any gambling game; or(iii) Any other applicant for a service provider license who, upon a determination of the chairman, should be a class 1 service provider. Such determination shall be based on the policy set forth in NRS 463.0129 and this subsection.
  • (b) A class 2 service provider is any person who is a service provider other than a class 1 or class 3 service provider.
  • (c) A class 3 service provider is a probationary licensee and is any person who is acting on behalf of an operator of interactive gaming as a marketing affiliate.

The (a) class 1 subsection would cover operators, manufacturers and software providers.  The (b) class 2 section is not clear but would apply to secondary licenses, perhaps internet cafes, bar terminals or other non standard places of gambling.  Another class 2 section mentions restricted licenses.  Typically restricted licenses in Nevada are bars and taverns that are restricted to 15 machines where gaming is not the primary business.

The (c) class 3 subsection covers marketing affiliates.  These are the types of companies that help promote the online poker rooms.  While no proposed licensees have discussed how affiliates would be a part of their business plan, this class 3 section shows that there has at least been discussion that marketing partners would be needed and addressed in the original regulations.

Companies that apply to be licensed in any class will be required to pay a $150 application fee and a $2500 investigative fee.  Class 3 licenses can be revoked with 30 days notice.

Nevada online poker rooms will be required to maintain security for all players.  This includes keeping player information confidential and funds segregated and secure.  These provisions will prevent emails and player info from being sold.  It will also prevent licensees from pulling money out of the player deposits before it is earned in rake.  Licensees will also be required to verify each player’s identity, make sure players are not blacklisted, and that bots are not used.  Self-exclusion will be required as well as a prominent display of problem gambling support contact information.  There must also be a policy on how to address criminal activity such as money laundering, collusion and other forms of cheating.

Players will be required to supply the licensed rooms with the following information:

  • Full name
  • Date of birth
  • Address
  • Social Security number

Players will be able to create an account either in person at a brick and mortar location of the licensee or remotely.  The licensee will be required to verify the identity of a remote applicant within 30 days.  If a player cannot be verified after 30 days, the player will forfeit any winnings.

The following deposit methods will be allowed:

  • Cash deposited at a brick and mortar location managed by the licensee
  • Personal checks, cashier’s checks, wire transfer and money order deposits made directly or mailed to the operator
  • Money held in a deposit account at a casino or other licensed brick and mortar gaming company
  • Credit cards and debit cards
  • Echecks or other electronic debits

Player to player transfers will not be allowed.  Credit accounts will  not be allowed either.  Players will be offered the ability to set timed loss limits, deposit limits, wager limits, session time limits and timed self-exclusions. Withdrawals are not discussed in detail but seem to be centered around picking up cash at a licensees brick and mortar operation.

While there is a lot more to the regulations, these are the regulations that directly affect players.


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