The state of Nevada is stepping up its fight against illegal gambling with Senate Bill 256 (SB 256), proposed by Senator Rochelle Nguyen. The main goal is to increase penalties for illegal operators and close existing loopholes in the current law.
Currently, state legislation already prohibits unlicensed gambling but does not provide for the seizure of assets obtained illegally. SB 256 aims to change this by requiring any operator found to be operating illegally in the state to surrender all earnings, which will be directed to Nevada’s general fund.
Furthermore, the bill seeks to impose even stricter penalties. The bill could upgrade some offences previously considered misdemeanours to felonies. Those convicted could face prison sentences ranging from one to ten years and fines between $10,000 and $50,000. Additionally, if approved, the bill will allow Nevada to prosecute illegal operators based in other states as long as they accept bets from Nevada residents.
AGA supports SB 256 against illegal gambling
The American Gaming Association (AGA), the leading body representing the regulated gambling industry in the US, has announced its full support for the measure. According to Tres York, AGA’s senior director, illegal casinos harm players by failing to follow consumer protection rules, not guaranteeing payouts, and avoiding tax payments. He stated that SB 256 would help combat this issue and prevent illegal operators from continuing to profit unlawfully.
Previously, Nevada’s Senate Judiciary Committee discussed the bill in a public hearing. During the hearing, various organizations, including the Association of Gaming Equipment Manufacturers (AGEM), the Vegas Chamber of Commerce, and the Nevada Resort Association, voiced their support. AGEM CEO Daron Dorsey commented that illegal gambling is a growing problem and that stricter measures are needed to protect both consumers and the regulated market.
The economic impact of gambling in Nevada is substantial. According to the Nevada Gaming Control Board, in 2023, casinos in the state generated over $15 billion in revenue, making it one of the government’s primary sources of income. The sector provides thousands of direct and indirect jobs. It contributes taxes that fund essential services such as education and infrastructure. However, the illegal market poses a threat by diverting resources that could otherwise benefit the state.
US States strengthen efforts against illegal gambling
Beyond Nevada, other US states are also taking steps to strengthen enforcement against illegal gambling. New York, New Jersey, and Florida, for instance, are working to regulate and monitor online casinos and sweepstakes sites more closely. These platforms, which often use virtual currencies to facilitate betting, operate in a legal grey area and frequently escape regulatory oversight, harming both players and governments that lose out on tax revenue.
Stricter regulation is also crucial for consumer protection. Illegal gambling often fails to provide payout guarantees, lacks responsible gaming policies, and can facilitate criminal activities such as money laundering. In a regulated market, licensed operators must adhere to strict rules to ensure a safe and transparent environment for players.
Introducing SB 256 could also strengthen Nevada’s position as a global leader in gambling regulation. Currently, the state is known for having some of the world’s strictest gambling laws. This new measure could also serve as a model for other states seeking solutions to combat illegal operators and protect their local markets.
Experts believe that approving SB 256 could positively impact both consumers and the legal gambling industry. With support from key industry stakeholders, there is strong anticipation that the bill will progress through the state legislature and contribute to a safer and more transparent gambling market.
As the bill remains under review in the Senate, industry analysts suggest that stricter enforcement is necessary to address the challenges posed by digital gambling. With the rise of online betting in recent months, states must adapt and ensure their laws are effective in cracking down on illegal practices and protecting both players and tax revenues.
This article was first published in Portuguese on 19 March 2025.
