The Nevada Gaming Control Board is taking decisive action against illegal bookmaking operations, nominating two individuals for inclusion in the state’s "Black Book" of excluded persons. Concurrently, a recent court ruling has brought prediction market firms under the purview of state gaming laws, signaling a significant shift in regulatory oversight.
Key Takeaways
- Two alleged illegal bookmakers, Wayne Nix and Mathew Bowyer, have been nominated for Nevada’s "Black Book."
- A federal judge ruled that certain prediction market products, specifically sports outcome markets, are subject to Nevada’s gaming laws.
- Major casino corporations have faced substantial fines and are implementing stricter internal procedures following investigations into illegal bookmaking activities.
Nevada’s "Black Book" Expands
The Nevada Gaming Control Board has nominated Wayne Nix and Mathew Bowyer for inclusion in the state’s list of individuals barred from licensed gaming establishments, commonly known as the "Black Book." Nix, who operated an illegal bookmaking business in California, allegedly took millions in illegal wagers and used illicit proceeds in Las Vegas casinos, even associating with former casino executives. Bowyer, similarly, ran an unlicensed bookmaking operation that involved casino hosts as agents.
Senior Deputy Attorney General Michael Somps highlighted Nix’s conviction of federal felonies, crimes involving moral turpitude, and violations of gaming laws as reasons for his nomination. Board members emphasized that these individuals have damaged public trust in Nevada’s gaming industry and that their exclusion sends a strong message against illegal activities.
Prediction Markets Under Gaming Scrutiny
A significant ruling by a Nevada federal judge has determined that certain prediction market firms, specifically those offering sports outcome markets like prebuilt parlays and player-prop bets, fall under state gaming laws. Previously, many such firms argued they operated as "event contracts" regulated by the Commodity Futures Trading Commission, distinct from traditional gambling.
Judge Andrew Gordon ruled that Kalshi’s sports-related products closely resemble sportsbook bets and are therefore subject to oversight by the Nevada Gaming Control Board and the Nevada Gaming Commission. While Kalshi has sought a stay pending appeal, the ruling could pave the way for enforcement actions against prediction platforms offering similar products, impacting how these businesses operate within the state.
Casino Fines and Reforms
In the wake of investigations into illegal bookmaking activities involving Nix and Bowyer, several major casino corporations have incurred significant fines. Resorts World was fined $10.5 million, MGM Resorts International $8.5 million, and Caesars Entertainment $7.8 million. These penalties underscore the seriousness with which regulators view violations of gaming laws and anti-money laundering procedures.
Casino executives have expressed remorse and committed to overhauling internal procedures to prevent future incidents. They emphasized a renewed focus on compliance, stating that revenue will not be prioritized over legitimate operations and acknowledging failures in detecting illegal activities. The inclusion of Nix and Bowyer in the "Black Book" is seen as a measure to reinforce the integrity of Nevada’s gaming industry.
Sources
- Gaming Control Board nominates illegal bookies for Nevada Black Book, Channel 13 Las Vegas News KTNV.
- Nevada Judge Rules Prediction Market Firm Falls Under State Gaming Laws, Regulatory Oversight.
