The Nevada Gaming Commission has approved amendments to the regulation that governs the activities of independent agents who bring high-roller customers to the state’s casinos. The changes aim to reduce the regulatory burden for the operators and streamline the oversight process.
What are independent agents?
Independent agents are individuals who have connections with wealthy gamblers and offer them incentives to play at certain casinos. They usually earn commissions based on the amount of money their clients wager or lose. Some agents work with multiple casino operators, while others have exclusive contracts with one resort.
Independent agents are not licensed by the state, but they are required to register with the Nevada Gaming Control Board and provide information about their contracts, compensation, and clients. They are also subject to audits and investigations by the board.
What are the new rules?
The new rules, which were approved by the Nevada Gaming Commission on Thursday, February 22, 2024, amend Regulation 25, which covers the reporting requirements for independent agents. Under the previous rules, casino operators had to submit annual reports to the board, detailing the financial data of their agents. The reports were due every February 15, which coincided with a busy period for the operators, as they were trying to attract high rollers for the Super Bowl and the Lunar New Year.
Under the new rules, casino operators will no longer have to submit annual reports, but they will have to keep records of their agents and make them available for inspection by the board during audits. The records must include the names and locations of the agents, the dates and terms of their contracts, and the amounts they were paid. The records must be kept for five years.
The new rules are expected to reduce the paperwork and administrative costs for the operators, while still allowing the board to monitor the activities of the agents.
Why are the changes important?
The changes are part of the state government’s efforts to reduce the regulatory burden for businesses and streamline the processes. According to Diane Presson, a supervisor with the board who oversees the independent agents, there are more than 300 agents registered with the state, who bring high-roller customers to the casinos across Nevada. She said that the board decided to leave the oversight of the agents at the property level, rather than requiring annual reports.
The changes are also important for the casino industry, which relies on independent agents to boost its revenues and profits. High rollers, also known as whales, are gamblers who wager large amounts of money, sometimes millions of dollars, per visit. They are coveted by casino operators, who offer them lavish perks, such as free rooms, meals, entertainment, and transportation. Independent agents help casinos attract and retain these valuable customers, by providing them with personalized service and exclusive offers.
The casino industry in Nevada has been recovering from the impact of the COVID-19 pandemic, which forced the closure of all gaming establishments for more than two months in 2020. The industry reported a 34.6% decline in gaming revenue in 2020, compared to 2019. However, the industry has seen signs of improvement in 2021, as more people get vaccinated and travel restrictions ease. The industry hopes that the new rules for independent agents will help them bring more high rollers to the state and increase their gaming revenue.
