After regulatory changes, NGCB awaiting manufacturer products

Burnett took part in a panel session on eSports and casinos at the recent G2E, where he provided insights into the regulatory challenges ahead. At the session entitled 'eSports and Casinos: The Coming Collision', he advised gaming manufacturers to build positive relationships with regulators to create the best experience for users.

What is the outcome of the 2016 G2E in Las Vegas? Based on the conversations you had with both casino operators, and gaming manufacturers during the show, what would you say are the main concerns and challenges facing the industry?

I am always impressed with G2E, and I always enjoy the opportunity to attend the exhibits and seminars. There are many new and exciting products that are being offered in 2016 and beyond.

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I believe that the gaming industry in Nevada is extremely healthy on the operator side

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It is my opinion that Las Vegas is on a rebound and moving every day toward new successes, in gaming and elsewhere. Visitation continues to increase. Last year, there were over 42 million visitors to Clark County. That’s an incredible number. The resort operators are experiencing the benefits of that visitation, and rightly so.

I believe our manufacturers are working hard to maintain their positions with the operators in terms of offering patrons what the operators are looking for. There, we are seeing operators choosing different slot and table mixes according to their own desires. This partnership has always existed, of course, but now the manufacturers are looking at diversification of those offerings. I think that our regulatory changes have gone a long way toward allowing those entities to be more flexible, if they desire. This new mix (of what the patrons and casino operators desire) is really interesting and fresh.

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I am a firm believer in the notion that we should continue to enhance and remain competitive with slot wagering offerings but also retain the flexibility to allow other types of games and innovations

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As a state regulator, how do you currently assess the federal climate?

Of course, I monitor the federal climate regarding gaming, from how our industry is perceived in Washington DC to any bills that come out of Congress. We at the GCB work with our federal counterparts in terms of law enforcement and I value those relationships greatly.

One of the issues for casino operators nowadays is how to get Millennials to spend more time on the casino floor. Even though gambling giants have upgraded visual displays, introducing plasma screens and themed cabinets based on T.V. shows and films in an effort to attract younger demographic, technology has remained much the same. What are the key points the industry is missing in its attempt to adapt to a new demographic reality?

Millennials are the “topic du jour,” certainly. I don’t believe this is a purely “gaming” question; I believe all industries in all segments are exploring how to market to, and entertain, millennials. I have always felt that the Nevada gaming industry harbors some of the greatest minds anywhere, from operators, executives, and entertainment, to legal and compliance staff. They will find solutions. Our job as regulators is to allow those solutions to come to fruition within a well-regulated area. In Nevada, we literally have thousands of gaming licensees. To keep up with them, and what they are doing, falls upon the 400 plus staff here at the GCB. I am equally as confident that our staff can handle any requests or concerns the operators have moving forward. This includes how to retain millennials on the casino floor.

In conversation with Yogonet, Robert Stocker, Member of Dickinson Wright PLLC, said Daily Fantasy Sports was designed to get around the fact that with the exceptions of the state of Nevada and pari-mutuel wagering in some states (primarily horse racing) sports betting is not legal in the United States. As seen over the last months – and at the recent G2E-, the American Gaming Association is active in pushing to legalize sports betting in the country. Is nationwide legalization possible? What does the future have in store for sports betting? When will it become a reality?

Sports betting is an increasingly popular segment of gaming. If anyone wishes to look to a model for regulating it, I would respectfully suggest they look to the Nevada model. Sports betting is a highly-specialized area, and if you do not take care to understand it well, you run the risk of making a mistake. That goes not only for operators but also regulators. I cannot prognosticate on whether sports wagering will become a nationwide reality. The Nevada GCB is working hard to eliminate offshore, illegal operators, along with working with law enforcement on cracking down on stateside illegal operators.

It seems like a sector of the gambling industry in the U.S., interactive, has moved at a much slower pace than Europe. Why is it taking so long for U.S. to fully legalize and regulate all forms of gambling?

We’ve been pushing hard here in Nevada to continue the momentum of interactive gaming. We entered into the compact with Delaware, which has been going very well. We’ve reached out to New Jersey but haven’t heard back. It is different in the US, since each of the 50 states has its own cultural, legal, and political climates regarding interactive. That’s reflected in Washington DC, of course, through federal representatives.

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I commend Geoff Freeman for the great work he does there

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Recently, a Nevada committee gave thumbs up to an NFL stadium in Vegas that will be partially financed by Sheldon Adelson. MGM's Murren himself also said that 75% of ithe company's business is non-gaming. These moves show a need for a paradigm shift, an industry makeover. We're seeing a clear trend toward more non-gaming attractions and facilities. What new developments can we expect to see in Las Vegas over the next years and how will they impact gaming revenue?

I disagree that these moves show the need for an industry makeover or paradigm shift. I think the industry is moving forward quite nicely. Nationwide market saturation of gaming has caused the smart Nevada operators to diversify. This diversification, along with the growth of Nevada and Las Vegas in general, leads to expansions of gaming and non-gaming amenities. It all becomes exponential. As for MGM, recall that their 25% of gaming business is still very, very significant. I don’t look at those numbers as an affront or insult to gaming. To the contrary, it shows just how big and well that company is performing.

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I am hopeful that we continue to see all kinds of new gaming and non-gaming developments in Las Vegas and Reno

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In a September Washington Post inteview, Senate Minority Leader Harry Reid, said Trump is barred from doing business in Nevada due to his long history of casino failures, and that even though he holds a gaming license, the state of Nevada would not let him use it. Being the chairman of the NGCB, what can you say about his statements on the Republican presidential candidate?

Mr. Trump was licensed in 2004 for a passive investment, through his corporation, in the Riviera. Since that time, his company eventually no longer held those Riviera shares, and upon the final sell down, Mr. Trump and his organization no longer needed a gaming license. That’s the extent of his licensing history here.

*A.G. Burnett is chairman of the Nevada State Gaming Control Board and trustee and treasurer for the International Association of Gaming Regulators. Burnett has also served as deputy chief of the corporate securities division for the GCB, handling legal matters and overseeing regulatory and investigative activities. He previously served as senior deputy attorney general in the gaming division of the Nevada attorney general’s office and as an associate in the law firm of Robison, Belaustegui, Sharp & Low. As a member of the State Bar of Nevada, Burnett has served on the functional equivalency committee and the executive committee of the gaming law section. He is a featured speaker on gaming regulation and regulatory compliance, and has been a guest lecturer at UNLV’s Boyd School of Law. Burnett earned his J.D. from Gonzaga University School of Law and his bachelor’s degree from the University of Nevada, Reno.