Board seeks sports book limits

Nevada gaming regulators Thursday moved to block questionable procedures that are used by the state's sports books to attract and keep big-money gamblers.

At the Nevada Gaming Commission's monthly meeting, Nevada Gaming Control Board officials introduced a series of proposals they have drafted over the past two years that would strengthen prohibitions against messenger betters, the use of electronic devices in books and the use of special promotions to attract high-stakes customers.

Though race and sports book industry representatives packed the Gaming Commission meeting, few addressed the commissioners after learning the body will take a more substantive look at the proposals in hearings over the next several months. Final action is not expected until September.

Thursday's meeting was primarily intended to give commissioners an early look at how the industry stands on the proposals, said Commission Chairman Bill Curran.

Gregory Gail, chief of the Gaming Control Board's audit commission, said the proposals would make eight significant changes to existing regulations:

--Book wagers would be required to be made in cash, not chips. This proposal would make book betters subject to the same cash reporting regulations that apply to other types of gambling, making it harder to place messenger bets.

--Communication devices such as cell phones and pagers would be banned from books. This prohibition is also intended to make messenger betting harder.

--Giving preferred customers access to special bets with highly favorable odds would be banned. Many books engage in the practice of letting high-stakes gamblers win back 10 percent of their wagers in special favorable-odds bets. This is simply a way of evading a 1997 state law prohibiting race and sports book rebates, officials said.

--In addition, all wagers, odds and line changes would be required to be posted for public scrutiny. Many of the special-odds race bets were never posted, officials said.

--Wagering by electronic means, such as modem-to-modem computer connections would be allowed, but wagering via the Internet would be banned.

--Books would be required to keep greater cash reserves on deposit to back up their ability to pay winners.

--Employees of books would be prohibited from betting in their books or in the books of affiliated companies.

--Employees of books would face greater registration requirements.

The final two points would prevent "control problems," in books, Gail said.

Of the proposals, the ban on placing book bets with chips seemed to raise the most industry objections.

"That's probably the most significant change," Gail said.

Bob Faiss, representing the Nevada Resort Association, said the Control Board's objectives could be met by requiring books to log all bets, whether made via cash or chips. Requiring all bets to be made in cash would force books to change procedures and might annoy customers used to betting with chips throughout casinos, Faiss said.

But Faiss expressed a willingness to work with regulators on the issue.

"I hope we will be able to find an alternative that would let them achieve what they want to achieve without having the major impact that this would have," Faiss said.

Barry Lieberman, general counsel for Coast Resorts, attacked the prohibition on special favorable-odds races offered high-stakes gamblers, calling such a prohibition a Control Board attempt to "micro-manage" industry marketing practices.

"This regulation attempts to control the marketing practices of books, and that is a dangerous and slippery slope," Lieberman said.

The Gaming Commission tentatively scheduled a special workshop meeting August 12 to hear more substantive comments on specifics of the proposed changes. The Commission will also hear the issue at its monthly meeting in Carson City next month, and plans a final decision in September.

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