Nevada moves to crack down on unlicensed gambling with new enforcement bill

Nevada is set to strengthen its legal framework against unauthorized gambling operators, following unanimous approval of a bill in both chambers of the state legislature. Senate Bill 256, introduced by Senator Rochelle Nguyen, passed the Assembly with a 42-0 vote on Thursday, weeks after receiving full support in the Senate.

The Assembly’s sole amendment, adding Assembly member Brittney Miller as a joint sponsor, means the bill now returns to the Senate for concurrence. Given the procedural nature of the amendment, the bill is expected to proceed to Governor Joe Lombardo’s desk for signing without further obstacles.

SB 256 aims to give Nevada more authority to pursue unlicensed gambling operations, including online sportsbooks and casinos that accept wagers from residents but operate outside state jurisdiction. A key provision would allow the state to take legal action against such operators even if they are physically located outside Nevada, as long as they serve Nevada-based customers.

Operators found guilty under the revised statutes would be compelled to forfeit profits, gross receipts, or any other financial gains to the state, which would then deposit the funds into the General Fund. The bill also introduces harsher penalties for individuals or entities facilitating illegal gambling, including the potential for felony charges.

While the legislation does not explicitly name sweepstakes casinos, it relies on Nevada’s existing legal definitions, which categorize gambling as any activity involving cards, dice, or electronic devices played for money or any “representative of value.” The dual-currency model used by sweepstakes casinos may fall under this definition, though legal interpretation remains unsettled.

At a Senate committee hearing earlier this year, legislative intern Janice Wong highlighted the bill’s intent. “With the rise of online gaming apps, we’ve seen an increasing number of unlicensed platforms operating in the shadows, accepting illegal wagers, engaging in fraudulent practices, and profiting outside the bounds of our regulatory framework,” Wong said. “This bill sends a clear message: If you operate illegally, you will be held accountable.”

The measure has garnered backing from a range of industry stakeholders, including the Nevada Gaming Control Board, the Nevada Resort Association, the Association of Gaming Equipment Manufacturers, and the Vegas Chamber of Commerce. Supporters have raised the need to protect Nevada’s licensed casino sector and tourism economy from erosion by black market operators, particularly as digital wagering platforms continue to expand.