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NEVADA GAMING LAWYER the Year in Review: GLS Update NEVADA GAMING LAWYER The Year in Review: GLS Update Boyd School of Law LL.M. in Gaming Law and Regulation: 2016 GLS Scholarship Recipients The Stardust Skim The Future of Daily Fantasy Sports and eSports in Nevada Nevada Gaming Licensees and the Disciplinary Process Gaming in the Courts: Key Decisions From Nevada Slade v. Caesars Entertainment Corp., LLC Senate Bill 9 Comes to Life: The (Slot) Future is Now Tip Pooling Policies Can Land Nevada Casinos in Court The Evolution of Large Private Investments in Nevada Casinos: New Nevada Gaming Commission Regulation 15C Facilitates New Opportunities for Private Equity Las Vegas Adapts to New Economics, New Demographics to Maintain Success The Government’s Recent SEPTEMBER 2016 Enforcement Actions: What Lessons Official Legal Publication of the Can Be Learned So Your Casino State Bar of Nevada GAMING LAW SECTION Does Not Make the Same Mistakes? All rights reserved Interview With Geoff Freeman EXECUTIVE COMMITTEE Regarding the AGA’s AML Jeffrey R. Rodefer, Chairman* Research Initiatives P. Gregory Giordano, Vice Chairman* A.C. Ansani Jaime K. Black Michael J. Bonner* William S. Boyd Michael R. Brunet Executive Chairman, Jennifer Carleton Boyd Gaming Corporation Lou Dorn* John A. Godfrey Maren Parry Jennifer Roberts* Scott Scherer* *Editors of the Nevada Gaming Lawyer FOREWORD By William S. Boyd, Executive Chairman, Boyd Gaming Corporation Welcome to the 2016 edition of Nevada Gaming Lawyer magazine. I appreciate the invitation to be contributing along with great articles written by leaders within the Nevada gaming bar. These topics highlight how the gaming industry continues to evolve and adapt to modern advances. Last year, Boyd Gaming Corporation celebrated 40 years in Nevada. That means we began as a company operating legal casinos in the only state that allowed it. Now, we are a company operating in 8 of the more than 20 states that have commercial casino gaming. But it certainly was an interesting beginning in those early Nevada days. After growing up in Southern California and Hawaii, I moved to Las Vegas with my Mom and Dad when I was 10 years old. My Dad was a dealer. He had learned to deal on the gaming ships off the coast of Southern California in the 1930s. Ten years after arriving in Las Vegas, he had worked his way up through the ranks and eventually saved up enough money to buy a 1% interest in the Sahara Hotel when it opened in 1952. He later became a partner and owner in and served as general manager of The Mint. That was a casino with 300 hotel rooms located in downtown Las Vegas. CONT. ON PAGE 3 NEVADA GAMING LAWYER | SEPTEMBER 2015 2 Although I had worked summers in high school at the We sold our casino where my father worked, I never thought of interest in following in my father’s footsteps in the gaming Union Plaza industry. I wanted to be a lawyer. I graduated from after 3 years and the University of Nevada because there was no formed the Boyd UNLV at that time. However, there wasn’t a law Group to build school located in Nevada, so, like many Nevadans at the California the time, I attended a law school outside Nevada, Hotel just off of but in the nearby region. Some went to California, Fremont Street. while I decided on the University of Utah College of That is when I Law because I had extended family living in Salt gave up the Lake City. practice of law. Then, in 1979, the Boyd Group opened Sam’s Town After graduation, I returned to Las Vegas and after Hotel & Gambling Hall on Boulder Highway, which passing the bar, started practicing law. At that has been very successful. time, there were actually very few specialists in the bar and certainly no gaming lawyers. As a lawyer, I My father and I always operated casino gaming helped clients with a wide range of legal matters, but openly, honestly, and fairly, in accordance with the many included commercial agreements, corporations, integrity required by Nevada’s public policy for and probate. During a majority of my 15 years in permitting casino gaming in this state. We knew private practice, I was a partner with Myron Leavitt, about those in the industry who had alleged ties to who later went on to become a Nevada Supreme underworld figures, but were not affected by them in Court Justice. our early casino days. This In 1961, a potential purchaser of the Eldorado casino changed in 1983, in Downtown Henderson hired me as his attorney. however, when Since it was difficult to obtain financing at the time – Patty Becker, a i.e., banks would not loan money to someone in the fellow lawyer and gaming business – the buyer asked if I would consider then member of the taking stock for my legal services. My partner Jim Nevada Gaming Brennan and I each got 5% of the stock for doing all Control Board, the legal work but my client still needed additional called requesting a investors to fund the purchase. My father agreed to meeting during invest, as well as my Aunt and Frances Horsey, also a which she asked the Las Vegas attorney. The purchase was a success. A Boyd Group to few years after the acquisition, my family and I bought take over the gaming operations only of the Stardust out the other Hotel & Casino on Las Vegas Boulevard. That was investors for a nice because of alleged skimming that was taking place profit and the there. Otherwise, the resort casino would be shut Eldorado became down by the Nevada Gaming Control Board. our first family-run casino. In 1971, The Boyd Group agreed to take over the Stardust my Dad and I casino because there were many jobs on the line and invested in the we felt an obligation because Nevada had been so Union Plaza where good to our family and our Company. The court my Dad was the approved Boyd Group’s emergency intervention into general manager the Stardust operations, but it sure wasn’t an easy and created the transition. Those loyal to the owners who were progressive concept overseeing the hotel and showroom would not of having all-female accommodate any of our casino guests with blackjack dealers. complimentaries. The showroom was always sold out! 3 NEVADA GAMING LAWYER | SEPTEMBER 2016 But we never faltered and, after about 16 months, the Stardust owners had lost all of their appeals and agreed to sell both the Stardust and the Fremont downtown to the Boyd Group. From our longstanding roots in the Nevada casino industry, the Boyd Group continued its expansion as commercial gaming expanded within the United States. In 1993, we became the public company Boyd Gaming Corporation and began entering into the market of 7 other casino jurisdictions. Meanwhile, gaming law became a specialty practice and the Gaming Law Section of the Nevada State Bar has successfully supported the casino industry now for many years. Both Boyd Gaming Corporation and I appreciate the efforts of the Gaming Law Section and its members, especially for the scholarships it has funded over the years at the William S. Boyd School of Law at UNLV – indirectly through its annual charitable golf tournaments from 2001-2012 that raised over $330,000 in scholarships and more recently its establishment of the “Gaming Law Section Scholarship” for students in the LL.M program for Gaming Law and Regulation. NEVADA GAMING LAWYER | SEPTEMBER 2016 4 MelaniIe nwa sM the mvoiocer fyor othfo sMe wheol awne rie eu nKabule stho bnei hre.a ..rd and doorway to our judiciary to ensu re our laws we re for all of us and not the fe w. She was instrumen tal in c reating the Gaming Law Section’s P ro Bono P rog ram for Gaming Employees. Her advocacy, passion and smile will be missed. Thank you Melanie. If you would l ike to make a d onation to the Leg al Aid Center of Southern Neva da in Melani e’s honor, please go to http:// www.lacsn. org. NEVADA GAMING CONTENTS Official LeLgaAl PuWblicatYion Eof R the 2 Foreword By William S. Boyd State Bar of Nevada GAMING LAW SECTION Memorial to Melanie Kushnir All rights reserved 5 EXECUTIVE COMMITTEE 8 The Year in Review: GLS Update Jeffrey R. Rodefer, Chairman* P. Gregory Giordano, Vice Chairman* 12 Boyd School of Law LL.M in Gaming Law and Regulation: A.C. Ansani 2016 GLS Scholarship Receipients Jaime K. Black Michael J. Bonner 13 The Stardust Skim Michael R. Brunet Jennifer Carleton 16 The Future of Daily Fantasy Sports and eSports in Nevada Lou Dorn* John A. Godfrey 20 Nevada Gaming Licensees and the Disciplinary Process Maren Parry 23 Gaming in the Courts: Key Decisions from Nevada Jennifer Roberts* Scott Scherer* 26 Slade v. Caesars Entertainment Corp., LLC *Co-Editors of the Nevada Gaming Lawyer On the cover: William S. Boyd, 30 Senate Bill 9 Comes to Life: The (Slot) Future is Now Executive Chairman, Boyd Gaming Corporation 37 Tip Pooling Policies Can Land Nevada Casinos in Court State Bar of Nevada Gaming Law Section Purpose 40 The Evolution of Large Private Investments in First, to enhance the role and sk ills of lawyers engaged in the practice of gaming law through study, collection, Nevada Casinos: New Nevada Gaming Commission development and dissemination of material on subjects of Regulation 15C Facilitates New Opportunities interest to the gaming practitioner. Secondly, members assist, when called upon by the Board of Governors of the State for Private Equity Bar of Nevada, in formulating, administering and implementing programs, forums, and other activities for the 44 Las Vegas Adapts to New Economics, New Demographics education of members of the State Bar of Nevada in matters pertaining to gaming laws and regulation.
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