Navigating Nevada Gaming Purposes: Classes from Recent Hearings | Womble Bond Dickinson

[co-author: Don Lee]

In Nevada, people and entities concerned within the gaming trade could also be required to endure a rigorous licensing or suitability course of administered by the Nevada Gaming Control Board (NGCB) and the Nevada Gaming Commission (NGC). This course of applies not solely to operators and executives, but in addition to key workers, traders, and sure distributors, relying on their function and degree of affect. Being licensed in Nevada is a privilege—not a proper—and candidates should meet the best requirements of honesty, transparency, and cooperation all through the investigation. The course of is thorough and sometimes invasive, reflecting the state’s dedication to sustaining the integrity of its gaming trade.

Recent NGCB proceedings have highlighted challenges and areas of concern, which have led to important delays, scrutiny, and potential denial of licensure. Applicants must be aware of those rules all through the licensing course of to keep away from delays, scrutiny, or antagonistic outcomes.

Maintain Honesty and Integrity

The statutory requirement for suitability mandates that an applicant be an individual of fine character, honesty, and integrity. Any actions that display untruthfulness or deception are seen as a breach of this commonplace.

• Avoid deception: Do not make untruthful statements, even when confronted with quick confrontation or panic. A latest applicant was criticized for untruthfulness and masking up actions.
• Promptly resolve historic misconduct: If an applicant has made a previous mistake, failing to proactively and promptly tackle the difficulty, notably when decision is delayed till looking for re-entry into the gaming trade, can elevate severe considerations in regards to the applicant’s motivation and total integrity.

Ensure Full and Continuous Transparency and Disclosure

Applicants should present all requested data utterly and constantly replace their functions all through the multi-year investigative interval.

• Disclose all monetary data: Failing to reveal all financial institution accounts is taken into account a severe oversight.
• Disclose all related relationships and property: Applicants have been criticized for failing to reveal main private property, similar to homes bought internationally, or rental properties used as residences, even when momentary.
• Disclose monetary sharing: Sharing funds with others should be disclosed to brokers to permit for investigation. Applicants are routinely questioned extensively about funds made to others for varied functions.
• Understand private accountability: The burden of making certain well timed and full documentation rests solely with the applicant, no matter reliance on inner or exterior compliance workers. Relying on compliance groups and neglecting private oversight shouldn’t be an appropriate excuse for non-disclosure.

Guarantee Full Cooperation and Appropriate Conduct with NGCB Agents

The NGCB calls for respect and full cooperation from all candidates. Failing to cooperate absolutely and well timed can lead to important delays, elevated prices, and self-inflicted accidents to the applying course of.

• Timely response to requests: Delays in offering requested documentation, similar to utility updates or vital monetary statements, are unacceptable. In one case, an applicant was criticized for his poor communication and failure to prioritize the brokers’ heavy investigative raise.
• Surrender requested gadgets instantly: Applicants must be conscious that the NGCB could request entry to private gadgets, similar to cell telephones or laptops, as a part of its investigative course of, and such requests should be complied with promptly for a clean investigative course of. Failure or delay in handing over gadgets, similar to a cellular phone, when requested by brokers is a serious level of concern.
• Maintain skilled decorum: Applicants should keep away from hostile, belligerent, disrespectful, or boastful conduct towards brokers. For instance, elevating one’s voice to brokers is unacceptable.
• Self-regulate and present emotional intelligence: NGCB members emphasised that candidates, particularly these in senior management roles, should display excessive emotional intelligence and self-awareness, making certain communications aren’t perceived as impolite, disrespectful, or uncooperative.
• Provide crisp and direct solutions: Applicants should present clear, particular solutions throughout interviews. Providing imprecise, complicated, or contradictory data could delay or trigger issues to the method.

Ensure Robust Corporate Compliance and Policy Adherence

The dedication to compliance should be evident in any respect ranges, demonstrating that the group prioritizes regulatory necessities over enterprise comfort.

• Adhere to inner insurance policies: Violation of firm coverage, such because the acceptance of items exceeding coverage limits or violations of fraternization coverage, displays poorly on the applicant’s character and judgment.
• Understand licensing nuances: Misunderstanding submitting necessities, even when unintentional, can result in gaming violations.

Role of Counsel During the Investigation

The function of authorized counsel within the licensing course of is essential and may considerably affect the result of the investigation. Given the complexity, sensitivity, and excessive stakes concerned within the licensing and suitability course of, skilled counsel can assist candidates navigate the procedural and substantive challenges that come up. Counsel could play three necessary roles through the investigation.

First, counsel serves because the “point person” for coordinating the brokers’ requests for paperwork or data. Requests are normally made by letter to the applicant with copies to his/her counsel or by phone name to counsel. The pace and accuracy of the meeting and transmission of requested data has a direct influence upon the size and value of the investigation. By coordinating the manufacturing of paperwork and knowledge, counsel can overview the supplies for responsiveness, readability, accuracy and completeness. The applicant’s degree of preparation and cooperation largely determines the size and expense of the investigation.

Counsel’s second function is that of an “observer.” If requests are made with out discover to the applicant’s counsel, the applicant ought to inform counsel of the request. By analyzing the character of the data requested and observing the route of the investigation, counsel could make educated guesses in regards to the brokers’ considerations or areas of curiosity. With this data, the applicant has the power to dispel any misconceptions and to arrange any vital rebuttal forward of time for the Board and the Commission hearings.

Counsel’s third function is “presenter.” An applicant’s counsel, being accustomed to the Board and the Commission hearings, might be presenting and introducing the applicant in entrance of the Board and the Commission. This additionally gives counsel the chance to manage the narrative (to the extent doable) and keep away from having embarrassing particulars revealed in a public discussion board.

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