Nevada to consider allowing pooled sports betting

Private entity groups would be allowed to place pooled wagers at Nevada sports books under a bill making a comeback in the Nevada Senate. Senate Bill 443, introduced last week, would allow a business entity to register with state gambling regulators and place big bets on football, basketball, boxing and other sporting action. Under existing law only individuals can place wagers at Nevada sports books.

Supporters of the bill say allowing entity wagers would permit Nevada, which has a monopoly on sports betting under federal law, to capture some of the estimated US$ 380 billion bet illegally on sports each year in the United States.

The American Gaming Association, a Washington, D.C., trade organization for the casino industry, estimated US$ 3.8 billion was bet illegally on this year’s Super Bowl football game alone.

A similar bill sponsored by state Sen. Greg Brower, died in the 2013 session when the head of the Nevada Gaming Control Board raised concerns over regulatory challenges and protecting the industry from money laundering and corruption.

The new legislation was introduced by the Senate Judiciary Committee, of which Brower is chairman.

During a hearing two years ago, Gaming Control Board Chairman A.G. Burnett questioned how long the regulatory arm of regulators could extend if big hedge funds such as Goldman Sachs or Bain Capital decided to set up separate entities to bet on sports.

Brower said he has discussed the bill in the interim with regulators and believes those concerns are addressed. “The concept is the same, some detailed language is different,” Brower said, adding that the new bill addressed “valid concerns” raised by regulators.

Among other things, SB443 would require the entities to pay an initial $1,000 registration fee, $500 for annual renewals, and submit detailed personal information on each owner, director, officer, manager and anyone entitled to payments.

A 1992 federal law confines sports wagering to four states, but none compete with Nevada and the allure of Las Vegas. The others are Delaware, Oregon and Montana, though New Jersey has been fighting in the courts and Congress, so far unsuccessfully, to join the sports betting arena.

Nevada books currently see a “handle”- or betting action- of roughly US$ 3.5 billion in sports betting annually. Some experts estimate that could triple over five years if the bill becomes law.

Brower said he expects to hold a hearing on the bill next week.