GCB & NGC Regulatory News Highlights • July 12, 2018 (Notice 2018-52) – Board issues Industry Notice that all Foreign Gaming forms are available online and may be submitted online too.

• July 5, 2018 (Notice 2018-50) – Board seeks input on revisions to Regulation 22 following the U.S. Supreme Court’s ruling in Murphy v. NCAA, et al.

• June 27, 2018 (Notice 2018-49) – Board considering a proposed bill for the 2019 Legislative session that would amend NRS 463.1036 to exclude computerized LET systems from the definition of associated equipment.

• May 22, 2018 – the Board, along with the Massachusetts Gaming Commission, Louisiana Gaming Control Board and the Michigan Gaming Control Board issue a joint media statement in the wake of the U.S. Supreme Court’s ruling in Murphy v. NCAA, et al. outlining five core principals or guidelines for adopting sports betting regulations: (i) coordinate action among the jurisdictions offering AN INTERVIEW WITH BECKY HARRIS legalized sports betting; (ii) CHAIRWOMAN OF THE NEVADA GAMING CONTROL BOARD jurisdictions regulating sports betting should strive to share By Jaime K. Black real-time betting information to Q: aid in detecting, preventing and In January 2018, Governor Brian Aside from you being the first eliminating match fixing; (iii) Sandoval made a historic appointment female Chair of the Board, which develop measures for responsible to the Nevada Gaming Control Board has already been discussed a great sports betting to “protect and (“Board”) by naming Becky Harris as deal, why is your appointment maintain the credibility of the the first Chairwoman of the regulatory important to the Board, the gaming activity”; (iv) the long history of agency, and only the second woman industry, and the State of Nevada? legalized sports betting in Nevada ever to sit on the Board. However, that’s no longer front-page news. I’m the first Chair to come from and the United Kingdom indicates Rather than dwell upon that fact, outside both the Board and the that such wagering is a very low especially since she now has industry in quite some time. I have margin business compared to approximately six months under her the benefit of having received a other forms of gambling and, thus, belt as the Chairwoman, in my quality gaming education through the reasonable tax rates and fees are interview with her, we discussed LL.M. in Gaming Law and Regulation critical to for the sports betting instead other important issues, program at UNLV’s William S. Boyd industry to be viable and including how she has adapted to the School of Law. Also, my experience as competitive; and (v) “[a]additional role and what current and upcoming Vice-Chair of the Nevada Senate fees, including the so-called (if reappointed) challenges she Judiciary Committee helped me to expects to face as the Board’s Chair. understand the diversity of issues in 9 NEVADA GAMING LAWYER | SEPTEMBER 2018 GCB & NGC Regulatory News Highlights the gaming space. My unique useful, especially the legal education background and opportunities have I received around complex gaming “integrity fee,” increases the costs given me a different perspective and issues. I had the privilege of of legal sports betting, siphon approach than some of the others who participating in an externship with the much needed tax revenues away have had the opportunity to serve on Board about two years before I was from state coffers, and increase the Board. appointed. That externship has proven regulatory burdens.” Q: to be incredibly valuable, because I What about the Board and in came to my new position with an May 17, 2018 – Commission particular, being the Chair, was • understanding of how the Board is adopts amendments to Regulations appealing to you? constituted and how it operates. 1 and 4. Specifically, the Q: Commission revises (i) Regulation While I really enjoyed my service in the Did you have any reservations Legislature, by necessity, I was forced about accepting Governor Sandoval’s 1.155 to modify definition of to be a generalist. Certainly, I had a appointment? If so, what were “registration” include other breadth of understanding and those reservations? business entities in addition to experience but I did not often have an corporations and to include opportunity to get into the depth of a It is such a tremendous responsibility. registration with the Board; and (ii) lot of issues. I love the variety of issues And not having had an opportunity to Regulations 4.030 and 4.080 to develop a robust or significant gaming that come before the Board. As a specify when an act or involvement practice gave me a little bit of pause. regulator, I now have the ability to dig by the Commission has occurred I did not have the level of experience into complex gaming matters. Also, or begun, and update classification there is not that same time pressure at in the industry that I perhaps would have liked to have had prior to the of approved registrations of holding the Board that I experienced in the companies to include other Legislature. It is an opportunity to appointment. business entities other really untangle complex issues and Q: corporations. make a difference. In your brief tenure at the Board, what has been the biggest surprise either about the agency • May 4, 2018 (Notice 2018-39) – and/or the position of Chair? Adoption of resolution by the The amount of time the day-to-day Nevada Gaming Policy Committee management of the Board requires. regarding the association between Q: the marijuana industry and licensed What has been the gaming. biggest challenge? April 30, 2018 (Notice 2018-37) – That there are only 24 hours in • Board updated all application forms the day. I want more time. Q: and related instructions with Since taking on this role, hyperlinks to the referenced forms. have you identified any areas All applications must now include in which you feel you could be, an application checklist with the or plan to become, more submission. Q: educated/knowledgeable? April 30, 3018 (Notice 2018-35) – You have discussed a bit of your Interactive gaming is the area of • Board issues a draft (dated April 2, background in your previous gaming I know the least about. responses. To elaborate more, what 2018) of an amendment to unique experience do you bring to Regulation 5 that would require all the role and why is it useful in this licensees to adopt and implement position? comprehensive plans to address sexual harassment. My experience as a lawyer in alternative dispute resolution allows me to use my mediation skills every • April 20, 2018 (Notice 2018-30) – day at the Board. Additionally, my Board issues Industry Notice that experience in the Nevada Senate has the Technology Division will no been useful in terms of conducting the longer require gaming device or monthly Board meetings and knowing associated equipment what issues are important. The training manufacturers to include a listing and education I received through my of feature codes on modification LL.M. has proven to be incredibly request forms. (continue on page 11) NEVADA GAMING LAWYER | SEPTEMBER 2018 10 GCB & NGC Regulatory News Highlights Q: Do you see significance in have several mentors who help me • April 19, 2018 – Commission establishing and building stay informed, centered, and balanced. adopts amendments to relationships with gaming leaders Regulations 4, 5, 22 and 30. from other jurisdictions? If yes, Specifically, the Commission made why? In your tenure, have you the following amendments: (i) started establishing/building those Regulation 4.080 to adjust the date relationships? Examples? by which an act or involvement It is incredibly important to have great approved by the Commission must relationships with regulators around occur or begin to coincide with a the world for a variety of reasons; to Commission meeting; (ii) be able to understand the difference Regulation 5.011 to clarify that between regulatory structures; the intoxication includes both alcohol ability to have conversations around and other drugs; (iii) Regulation 22 which practices are productive in a regulatory environment, and which regarding, among other changes, lessons other regulators have learned information collection and in their jurisdictions. Nevada has been retention, obligations related to Q: a great global community leader in Are the UNLV Boyd School suspicious transactions, virtual being willing to share its experience as of Law, The International event requirements, remote the most mature gaming jurisdiction in Gaming Institute (“IGI”), and verification of identification the United States. The International Center for credentials, and requirements Gaming Regulation (“ICGR”) Yes, I have started establishing and regarding the operation of race valuable resources for you and building relationships with other books and sports pools; and the Board, and vice versa? jurisdictions. I am part of U.S. Regulation 30 to, among other Regulators Forum, which brings Through my studies, the Law School, changes, revise the definition of together eight regulators from the IGI, and the ICGR have been “day,” allow the state steward to jurisdictions within the United States, invaluable because they provided the approve uncoupling of horses in where we talk regularly about foundation for my gaming education. any race, remove limits on the challenges that our jurisdictions are The Law School consistently provides number of horses having common facing. We work together to find quality gaming resources, such as law ties entering an overnight race, consensus on important issues. My review articles, scholarly works, and setting standards for secondary most recent example would be the case studies. level of nonsteroidal anti- regulatory statement that was issued with regard to the repeal of PASPA. The IGI and ICGR excel at providing inflammatory drugs (NSAID), and gaming-related resources and alphabetize the list of permitted list Finding areas of shared common interest is incredibly valuable, not only education to a variety of stakeholders of NSAIDs. for industry leaders and stakeholders, and regulators. The staff at the IGI and but for regulators as well. ICGR are always available to bounce • March 28, 2018 (Notice 2018-19) Q: ideas off of, collaborate with, and – Board issues Industry Notice that You are a lawyer. You have been provide resources. The ICGR has been its Enforcement Division has a member of the State Legislature instrumental in establishing and implemented a process for the and reviewed gaming-related bills. facilitating the U.S. Regulators Forum. electronic submission of gaming You were one of the first graduates Without that, there really is no other device transactions. of William S. Boyd School of Law’s structure for regulators to come L.L.M. in Gaming Law and together to discuss shared concerns, talk about effective regulation, and • March 22, 2018 – Commission Regulation program. In addition to your fairly diverse background and discuss emerging gaming products. So, adopted changes to Regulations 5 experience, what other resources yes, I do view the Law School, IGI, and and 22, Specifically, the do you rely on to effectively lead Commission approved: (i) the Board? Regulation 5 revisions that included operation to club venues, I rely on my fellow Board Members, determination of qualification as a who are intelligent, capable, and club venue, club hosts, promoters seasoned. They have an incredible and employees, registration of amount of institutional knowledge and experience. I rely on my staff. I have independent hosts, and to clarify an incredible staff, who are experts in that club venue revolving accounts their respective areas, show leadership are used to pay expenses of the and are committed to the Board. I also 11 NEVADA GAMING LAWYER | SEPTEMBER 2018 GCB & NGC Regulatory News Highlights ICGR as very valuable, not only to the (or a respondent in a disciplinary Board but to the larger regulatory action) speaking to the judge or fact Board and Commission to conduct world as well. finder outside the presence of the undercover operations; and (ii) opposing counsel. In disciplinary Regulation 25 to add definitions of The Board has a robust relationship actions, the finder of fact is the Nevada with the IGI and ICGR. As part of “chair,” “customer incentive,” and Gaming Commission. The Board is not “theoretical earning potential,” to our responsibility to be a good the finder of fact; it conducts the revise the definition of community partner, the Board assists investigation and determines whether “independent agent,” delete the the IGI and ICGR as they provide or not to file a disciplinary complaint. education to regulators from a As such, the Board can and does meet definition of “preferred guest,” variety of jurisdictions. with the respondent and their counsel, specify which independent agents Q: if counsel is retained. While it is not are required to register, set forth Do you have an open-door required for the respondent to retain additional requirements for the policy for those in the gaming counsel in disciplinary proceedings, independent agent agreements industry? If so, why? Do you view having an advocate is prudent. with licensees, clarify when the this as an important avenue for Q: independent agent must register maintaining effective lines of Should you be reappointed in communication between regulators and renew his or her registration, January 2019, do you envision any modify the registration and and the regulated gaming industry? significant reorganization plans for renewal requirements, create and the Board? If so, what would you objection and appeal process for anticipate? independent agent registration, No, I do not anticipate any significant setting forth the ability to suspend structural reorganizations. I believe the the registration of an independent way the Board is presently constituted agent for failure to pay child is effective. I certainly have a vision for support, requirements for ways we can improve how we interact independent agents to update their with those who have regular contact registration information and with the Board, use technology to enhance what we do, and provide authorizing the chair to require better information in a more efficient new registrations based on the way. I want to provide my staff with updated information, clarify the the tools they need to enhance their methods by which an independent ability to do their jobs. agent may be compensated, Q: establishing the consequences for Over the past year, sexual an independent agent failing to harassment has become a mainstream timely file an application after topic of discussion, which has recently being called forward, and modify crossed over into the gaming industry. and update reports required of Yes, I do have an open-door policy You have pioneered a set of proposed licensees and related record and believe it is important. We are a sexual harassment regulations. Why self-report regulatory model. With are these regulations important? What retention. that open door, and the comfort that will these regulations accomplish that comes with it, people in the industry Regulation 5.011(8) does not? What • February 15, 2018 (Notice know they can come and talk to me will these regulations accomplish that 2018-06) – Board issues Industry about the great things they are already existing sexual harassment Notice that Version 8 of the CPA accomplishing or some of the things statutes and regulations, both federal MICS Compliance Checklists and they find a little bit challenging, or and state, do not? Guidelines, as well as Internal when they are simply looking for Audit Compliance Checklist and guidance. Without it, we would not Despite the sexual harassment be as effective as we are. prevention laws we have on the books, Guidelines were adopted on Q: it is still a problem. I think that, as a December 19, 2017 to be effective Are there limitations to such an society, we have seen in the last twelve March 1, 2018. open-door policy, where such months how significant a problem it is communication may be viewed as and that it is endemic to every ex parte if the matter, for example, is industry. While the Board is granted a pending disciplinary action? significant power under Regulation 5, Where do you draw those lines? I think it is important to put a structural framework in place for Prohibited ex parte communication sexual harassment prevention. typically refers to a party to a lawsuit NEVADA GAMING LAWYER | SEPTEMBER 2018 12 When you look at other issues that illegal marijuana industry, do you has been committed to staying abreast impact the gaming industry—marijuana, see any resolution to this issue in of the important factors that need to be for example – the Board has been very Nevada for the foreseeable future? considered when one looks at what proactive in sending out notices to contributes to successfully regulated licensees and providing guidance with Marijuana is tricky. U.S. Senator gaming. Having a proactive approach regard to particular circumstances Elizabeth Warren currently has a bill and relying on the expertise of my staff where marijuana may impact gaming before Congress, which would allow at the Board, being well read in terms licensees. I think it is only appropriate for states that have legalized of emerging game technologies, that we provide pertinent resources to marijuana to be exempted from federal offerings and the way that gaming is set the gaming industry with regard to laws regarding marijuana. I think if to transition over the next decade, is sexual harassment. that bill were to pass, it would provide important. As we anticipate what those a lot of clarity and resolution for changes are, Nevada is going to gaming licensees in the United States, continue to develop its regulations to in general, but more particularly, for allow for the flexibility that’s required, gaming licensees in Nevada. I am while ensuring there is integrity in the hopeful there will be a resolution at regulatory process. Nevada will be the federal level that will provide the flexible enough to allow for new clarity that gaming licensees want, opportunities and new products, but because Nevada has been operating in maintain our core function, which is a murky area for quite some time. The the smart regulation of gaming. Board has been judicious in how it Anytime someone engages in gaming analyzes the impact between the in Nevada, they can have confidence gaming industry and the marijuana those games are conducted fairly and industry. When one considers the honestly, and they are going to have the amount of revenue generated by the benefit of what we offer here in Nevada legalized marijuana market in Nevada, through our regulatory process. it is quite clear that marijuana is here to stay. Any clarity that the Board can Q: provide to the industry, on solid legal In this issue of the Nevada Gaming Lawyer , Erica Okerberg footing, is a positive thing. But because and Scott Scherer address the U.S. the clarity is not there, it continues to Supreme Court’s decision in Murphy be a challenge. Q: v. NCAA, et al. , and its ramifications, For quite respectively. What will be the some time, Board’s role as new jurisdictions Q: emerge to engage in legalized You just touched on the topic of Nevada has been referred sports betting? If reappointed, marijuana in your prior response. what will you do to ensure Nevada Let’s dig a little deeper into that to as the “gold standard” in continues to lead in the area of issue. The regulated marijuana sports betting regulation? industry in Nevada and its gaming regulation around the world. Do relationship with licensed gaming As soon as the PASPA repeal was you see that position continue to raise difficult issues announced, the Board issued a diminishing now that other for regulators given marijuana’s statement that it was supportive of the gaming jurisdictions are distinction as a Category I Supreme Court’s decision and that controlled substance under federal maturing? If reappointed, what are law. Thus, making it impossible for your plans for maintaining Nevada’s the gaming industry to have any position as the gold standard? relationship with marijuana in light Nevada will always be the leader in of Regulation 5.011(8), which gaming regulation, both in the United makes it an unsuitable method of States and worldwide. The Nevada operation to violate local, state or experience incorporates a breadth and federal laws, which can ultimately a depth of knowledge and experience in be grounds for disciplinary action almost every type of regulated gaming under Regulation 5.030 and NRS that exists. 463.310. Given the Trump Administration’s and, in particular, I have had an opportunity, even in my U.S. Attorney General Sessions’ short time as Chair, to look at our decision to reverse the Obama-era regulations and revisit several of them policy that restricted federal to determine whether or not they need prosecution of those engaged in the to be updated. Nevada is and always 13 NEVADA GAMING LAWYER | SEPTEMBER 2018 Q: Becky Harris is the Nevada stands ready to share our As a former Legislator, if Chairwoman of the experience, knowledge and expertise reappointed, will you take an Nevada Gaming with any jurisdiction that has questions active role in the Board’s Legislative Control Board. She and wants to know how to regulate was appointed to activities? How will your former this role by Governor sports betting. experience in the Legislature Brian Sandoval in benefit you and, more importantly, January 2018. With respect to the second part of the the Board? Ms. Harris studied question, I am not waiting until I am Political Science and reappointed; we are already leading in Absolutely. I understand the legislative French at Brigham this area. Several jurisdictions have process and all its intricacies. I have Young University, graduating with a Bachelor of Arts already reached out and Nevada is had experience in the last two in 1989. She attended J. Reuben Clark Law School already providing them with the at Brigham Young University, graduating in 1992. legislative sessions in crafting policy She obtained a Master’s Degree in Political Science benefit of our knowledge and and working to build consensus from the University of Nevada, Las Vegas (UNLV) in experience. It has been a phenomenal around important issues that are right 2000, and earned an LL.M. in Gaming Law and opportunity to speak to many people for the state of Nevada. Regulation from UNLV’s Boyd School of Law in from around the country, indeed the Q: 2016. Before being appointed to the Board, world, regarding sports betting, how Ms. Harris represented State Senate District 9 in The Gaming Law Section (GLS) Clark County for two legislative sessions. During the the Nevada model works, and why it has enjoyed a long relationship with 2017 Legislative Session, she served on the Senate works so well. the Board and Commission. As you Judiciary, Finance, and Education Committees. may know, many current GLS Additionally, she served as the Treasurer of the members, as well as current and National Council of Legislators from Gaming States and had recently been selected to Chair its past members of the GLS’ Executive Committee on Responsible Gaming. At that time, Committee, are, or have been, she also served as Nevada’s State Director for regulators with the Board or the Women in Government. During the 2015 Legislative Nevada Attorney General’s Office. Session, she served as the Chair of the Senate You are prominently featured in this Education Committee, Vice-Chair of the Senate Judiciary Committee and was a member of the year’s issue of Nevada Gaming Senate Commerce, Labor and Energy Committee. Lawyer and will also be a speaker at Prior to her appointment, she also practiced law in the 2018 Gaming Law Conference on Las Vegas. Her areas of focus included counseling November 16th at the Red Rock business clients in entity formation, maintaining Casino Resort. On behalf of GLS, I compliance with state and local regulations, contract negotiations, commercial leases, and would like to take this opportunity dispute resolution. to thank you for your support of the GLS and its activities to help further educate members of the Bar and judiciary about the unique area of Jaime Black serves gaming law. Do you believe this as the Chief of the relationship with GLS is a benefit to Administration Division for the you and the Board? If so, how? Is Nevada Gaming there anything you would like to see Control Board, the GLS do in the future? having previously Q: held the position of The 2019 Legislative Session is GLS put together a really great policy Senior Research fast approaching. If reappointed, and practice manual that was released Specialist. Prior to a few years ago. That manual provides her employment with do you anticipate the Board the Board, Jaime was submitting an omnibus bill? If so, access to a great core of knowledge to an associate attorney with an insurance defense what areas will the Board seek to those wishing to practice in gaming. litigation firm in Reno. She was admitted to the clarify or change in the upcoming I thought that was a remarkable Nevada Bar in 2009 and Florida Bar (inactive) in Legislative Session? undertaking and incredibly helpful, 2008. She received a Bachelor of Arts, cum laude not only to gaming lawyers but also in Political Science from California State University of Fresno in 2003. She graduated from Barry The Board is not submitting just for any attorney who has questions one bill, it is submitting two. We University School of Law, magna cum laude in the about gaming law. Certainly, the GLS top 4% of her class in 2008. During law school, she are looking to make some technical is helpful and incredibly influential served as the Associate Editor (2006-2007) and the corrections and updates with regard to in terms of advocating for policy and Symposium Editor (2007-2008) for the Barry Law the statutes overall. The Board also has strong regulatory changes that are Review, and was member of the Moot Court Honors Board. She also served as law clerk to the some suggestions that are important to important for Nevada. I look forward the effective regulation of gaming. This Honorable Melvin T. Brunetti, United States Court to strengthening my relationship with of Appeals for the Ninth Circuit (2008-2009). is an opportunity to really look at some the GLS. areas of gaming that have not been visited for quite some time.

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