28 Gaming Executives Sign Letter Discouraging Legalization of Internet Gaming

28 Gaming Executives Sign a Letter Discouraging the Legalization of Internet Gaming

Casino owners in Nevada have always been adamant against the introduction of online gaming. Just recently, 28 gaming executives signed a letter advising the state to reconsider anything about online gambling. The letter was sent to the chairman of the Nevada Gaming Control Board and Nevada Gaming Commission.

The 28 executives related to casinos in the Las Vegas Strip and taverns in rural parts shared a similar view. They believe the introduction of online gaming would be bad for the state’s economy.

The letter asks the recipients to deliberately consider whether online gaming is needed to grow the state’s economy or help the local community. Another thing it covers is whether it would remain in line with the already established regulatory framework.

Lawmakers Are Looking To Legalizing Online Gambling

Nevada is home to some of the world’s best casino resorts. The state is the USA’s largest gambling hub. But, following the spread of the coronavirus last year, which led to the closure of casinos, revenue tax in Nevada plunged.

This encourages state officials to look for alternative revenue resources. The Nevada Gaming Control Board even scheduled a meeting in May to discuss online gaming. But, the board postponed the meeting to a time after the end of the 2021 legislative session.

The new date is yet to be set. But, most people, especially those living away from casinos, are for the idea of the legalization of online gambling. Still, the 28 gaming executives had to air their concerns before knowing when the NGCB‘s meeting would occur.

Other surrounding states such as Pennsylvania and New Jersey have legalized online gaming. These states are benefitting from massive tax revenue.

Nevada’s officials seem to bring such kind of revenue to the state. But, Gaming executives are not happy about it.

Internet Gaming Will Steal Retail Players

The signed letter explains how the introduction of online gaming would affect revenue collection. It states that legal internet gaming cannot go well with the state’s gaming industry.

The gaming executives referenced other states with online legal gaming whose games were not close to Nevada’s casinos. The executives explained that local gamblers who could turn to online gaming would reduce revenue collection in retail casinos and job loss.

According to the letter, brick-and-mortar casinos and taverns provide over $19 billion in wages. These gaming locations employ over 430,000 citizens while still acting as economic engines for the state. The letter also argued that the gaming industry paid almost $41.8 billion in taxes and other special fees to municipalities and the state.

With online gaming, there will be fewer visitors going to casinos. Thus, these physical gaming properties will not need employees, leading to job loss. The letter further explains that casinos will need fewer table game dealers, cooks, dishwashers, beverage and food servers.

Nevada’s Gaming Regulations

The gaming executive concluded their letter by showing how online gaming could not meet regulatory scrutiny.
The state offers restricted and non-restricted gaming licenses. Restricted licenses are for small businesses such as bars and restaurants, while non-restricted permits are given to companies with over 200 hotel rooms.

With online gaming, there will be no limitation to where gaming can occur. The executives feel online gaming will violate the gold standard, especially because gambling will occur in households not meeting the criteria for having restricted or non-restricted licenses.


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