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Sports wagering kiosks approved for Golden Gaming
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Review-Journal File
A bettor uses a sports wagering kiosk at the Stadium Grille in January 2007. Bookmaker Leroy's has used the kiosks since 2007 to let customers place wagers in sites away from typical casinos. » Buy this photo
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LAS VEGAS REVIEW-JOURNAL
Nevada gaming regulators decided Thursday to allow taverns owned by Golden Gaming to use high-tech sports wagering kiosks operated by bookmaker Leroy's, but will spend the next 22 months deciding whether the devices violate current gaming law.
During more than two hours of back-and-forth testimony, which included several impassioned outbursts by Leroy's Chief Executive Officer Vic Salerno, the Nevada Gaming Commission voted to allow the sports wagering kiosks to operate in the taverns after it learned that 15 of the Golden Gaming businesses had been using the machines over the past two weeks.
"We probably could have saved a lot of time if we had known these were already operating," gaming commissioner Randolph Townsend said before the 3-0 vote to allow Golden Gaming and Leroy's to share in the revenues from the kiosks.
The licensing agreement expires in July 2013, which gives the gaming industry and regulators time to decide whether the kiosks are actually a gaming device.
Gaming Commission Chairman Pete Bernhard said that if the kiosks are considered a gaming device, they might violate regulations limiting restricted gaming locations to 15 slot machines.
"This doesn't make sense to me," Bernhard said. "This seems like a full-fledged sports pool, which can't go into a restricted location."
The kiosks, which have been used by Leroy's since 2007, were originally designed to allow customers to place wagers in locations away from typical casinos, as long as they have money on account. The kiosks were being used in Buffalo Wild Wings and the Inn Zone Lounges. Customers would have go to a Leroy's sports book to cash winning tickets or open accounts.
However, technology has evolved, allowing customers to deposit money at the kiosks and collect winning tickets on the spot.
Also, at Golden Gaming locations customers would be able to open wagering accounts.
Nevada Resort Association officials said earlier this week that the lobbying group was concerned the terminals and their expanding technology were blurring the distinction between nonrestricted gaming sites, such as hotel-casinos, and restricted locations.
Resort association President Virginia Valentine attended the gaming commission meeting, but didn't testify at the hearing.
When the three commissioners participating in the hearing -- Joe Brown recused because of a conflict of interest and John Moran Jr. was absent -- openly discussed application denial, Salerno became incensed.
Leroy's and Golden Gaming spent more than $1 million to develop the technology, which he said would increase the number of sports gamblers and grow tax revenue for the state. When told the commission might approve the revenue sharing without allowing the feature to let customers open accounts, Salerno gave the commission an earful.
"If you do this, it's going to really stifle this industry," Salerno said. "This would kill it. It has to be convenient. We're trying to bring (technology) out that is new. I can't believe it. I'm very disappointed."
In the end, attorney Scott Scherer, representing Golden Gaming, suggested a two-year license to allow the tavern operator and Leroy's to move forward while it was determined whether the regulations or statutes needed to be changed.
Salerno said Leroy's had an undisclosed exclusivity agreement with Golden Gaming for the use of kiosks, which allow tavern customers to become Leroy's customers. He said the kiosks could be used in other nonrestricted locations.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.
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The Fertittas would have won if the kiosks were banned. And don't give me the brother in law routine. They don't want sports bettors going anywhere else but Station Casinos. Love the conspiracy theories...
There, in my opinion, is a simple solution to this. If the machines are considered to be a gaming machine that violates the 15 machine limit rule, then simply make it a law that if a restricted license wants a Kiosk, they have to remove one of their other 15 machines. This is simple to the point and no long drawn out legal battle that even at the end of two years could start all over again. So dumb!
Will Dotty's be able to have sports betting kiosks?
I understand the issue, but the gaming commission needs to get it's act together and establish regs that we, and they understand. The OTB's in Pennsylvania had like machines installed in 2006, but for horse racing. Understand this is para-mutual, not a sports pool, but the same concept.
For marketing purposes, Leroy's gains a new guest for their data base each time a kiosk is used to open an account, or if the guest visits a Leroy's book. Golden Gaming (PT's), in my opinion, deserves every increase in revenue they receive for the new and innovative ideas over the past few months. The ladies player club card is genius!!!
Regarding the negative comments; Nevada's industry is gaming. We should keep up with technology and adapt and modify. The gaming industry is a 24 hour, 7 day a week, 365 day a year competitive business. The gaming companies need new marketing strategies like any other industry. And like it or not, gaming has the influence in our state.
This place is a pathetic joke. Every other country has a choice of all the online sportsbetting sites with competing lines. If your a gambler then stay away from here . No freedom in Las Vegas Nevada.
The gaming commission is just a bunch of puppets who are out for the highest bidder.
The part I find interesting is why does the Nevada Gaming Commission not know the law on something like this already? They are the ones that make the rules/laws for gaming. Why is going to take them until July 2013 to figure out their own rules/laws? Have they made the rules/laws so difficult that it will take them 1 1/2 years to figure out their own rules? Something is not right when the rulers don't know the rules.
The Fertittas win again. PT's will reap the rewards.
You just have to wonder how the Mafia came to control this state.