Nevada Gaming Industry Soars: Simplified Submission Process for Manufacturers Without IP Hurdles!

Nevada gaming manufacturers will find it simpler in 2025 to submit proposals to state authorities for new games without possessing the intellectual property rights. This modification is anticipated to promote a wider variety of themes for slot machines.

The revision to an existing Nevada Gaming Commission regulation would formalize a practice that is already being followed, while also motivating more manufacturers to present their concepts before committing significant funds to acquire the rights. It received approval at the December 19 meeting of the Nevada Gaming Commission.

“This language may encourage those who haven’t secured the IP,” stated Jim Barbee, head of the Technology Division of the Gaming Control Board. “This will clarify that they can present their concepts to the Board while they explore acquiring the IP and determine if this is something they can even bring to market. I view it as a possible advantage for the industry. In the future, we might observe an increase in IP-related game themes, as the industry may not feel restricted by the current legal wording.”

The revised regulation permits entities that have a “good-faith intention” of obtaining the rights to a theme to seek a verdict from the chair of the Gaming Control Board regarding whether that theme is prohibited due to excessive violence, for instance. Presently, such capability is restricted to those who already hold the rights.

“This language aligns the regulation with our current practices,” Barbee remarked. “We’ve allowed these entities to come forward that wish to obtain the IP.”

Barbee indicated that it’s a typically behind-the-scenes procedure, but it can be made public if the company disagrees with the administrative ruling that denies a theme not in line with public policy. Such a determination can be appealed to both the Board and Commission.

Gaming Control Board Chair Kirk Hendrick cited the NFL as a case in point. Aristocrat has an NFL-themed slot machine.

“If someone believed they could secure those rights, they would file an application before investing time and resources to acquire them,” Hendrick explained. “All this seeks to align reality with how the procedure functions alongside the law.”

Commission Chair Jennifer Togliatti raised concerns about potential system manipulation.

Barbee responded that the submission for review encompasses a wealth of background information and potential game graphics, hence if you’re “going to create a slot machine themed around the NFL, we want to visualize what that actually looks like when introduced to the public.”

Barbee provided an instance of a manufacturer that aimed to acquire the rights for the newest “Walking Dead.” It was not only “quite burdensome,” but the corporation also wished to present the potentially violent game content to the regulators beforehand.

All of this must occur within a period of 30 to 45 days for regulators to arrive at a decision, Barbee noted. He and the chair assess the theme and the good-faith effort the companies are making to obtain rights.

Commissioner Brian Krolicki inquired regarding how they gauge if it’s a good-faith effort.

“We’re dealing with very sophisticated manufacturers,” Hendrick remarked. “They’re risking their reputation. It has been this way for ages. Many manufacturers may not possess the IP, but they’re confident in their ability to obtain it.”

The attorney general’s office stated that the good-faith language was incorporated to prevent companies from submitting requests in which they lacked the capacity to secure the rights and “test the waters” without genuine intention. This was a method to ensure that companies are earnest and to spare the Board from unnecessary scrutiny of hundreds of requests.

The regulatory alteration was consented to unanimously.