On April 3, 2017, the Nevada Assembly Judiciary Committee passed Assembly Bill 75 (2017), which would, among other amendments, amend the current definition of who is a “manufacturer” of a gaming device, cashless wagering system, mobile gaming system, or interactive gaming system for use or play in Nevada.

Currently, as defined, an entity that manufactures at least two elements of a gaming device is considered a manufacturer and must be licensed by the Nevada Gaming Commission.

A.B. 75 would amend the existing law and provide that if a manufacturer licensed by the Nevada Gaming Commission “assumes responsibility” for the work of a third party manufacturer, such third party manufacturer would not need to be licensed by the Nevada Gaming Commission. Also, A.B. 75 would provide that an independent contractor who designs, develops, programs, produces, or composes a control program for use in a gaming device is not required to be licensed as a manufacturer under the Nevada Gaming Control Act if a manufacturer licensed by the Nevada Gaming Commission “assumes responsibility” of the control program.

“Assumes responsibility” would be defined as (i) “acquires complete control over, or ownership of, the applicable gaming device, associated equipment, cashless wagering system, mobile gaming system or interactive gaming system” and (ii) “accepts continuing legal responsibility for the gaming device, associated equipment, cashless wagering system, mobile gaming system or interactive gaming system, including, without limitation, any form of manufacture performed by an affiliate or independent contractor.”

As A.B. 75 progresses through the Nevada Legislature, we will provide periodic updates as warranted.