New Nevada gaming board chairman is aware of the significance of getting know-how OK’d shortly

Mike Dreitzer knew from expertise that Nevada all the time lagged behind different states when it got here to getting new video games and know-how onto on line casino flooring.

It’s why one in all his preliminary acts after turning into chairman of the Nevada Gaming Control Board this summer time was to institute modifications to the company’s take a look at lab procedures that allowed for a faster approval course of.

“I think it’s important for regulators in any jurisdiction to work at a faster pace,” stated Dreitzer, 54. “When it came to lab matters and gaming technology, we weren’t moving at the speed of business.”

The Nevada Independent checked in with Dreitzer six months after he took over because the state’s high gaming regulator. He took an uncommon path, from CEO of a gaming tools firm to state service that’s usually decrease paid. 

Dreitzer took over some thorny debates within the new job, together with a struggle over prediction markets which have exploded in recognition and threatened to cannibalize sports activities betting in Nevada. The firms have eluded state regulation and the battle is going down within the courts.

And then there’s the crimson tape: Dreitzer stated state on line casino operators usually launched new video games in markets exterior Nevada.

“The message was, ‘We’ll get to Nevada last because it’s just too complicated,’” he stated.

Dreitzer’s modifications have been welcomed by the Association of Gaming Equipment Manufacturers (AGEM). The 145-member commerce group, led by among the on line casino business’s largest slot machine builders, had been pushing for revisions to hurry up Nevada approvals.

“Mike is a person who not only understands the control board, its operation and its mission, but also how the equipment companies operate,” stated AGEM Executive Director Daron Dorsey. “He’s been a competitor and a collaborator, which is great for the supplier side.” 

Dorsey stated the modifications within the lab and processes in approving gaming tools enable builders to incorporate Nevada as a part of nationwide launches of recent slot machines.

“Being able to hit multiple [jurisdictions] at the same time is a benefit to suppliers,” Dorsey stated.

Jumping into the job

Dreitzer stated he’s following by with the work began by his predecessor, Kirk Hendrick, in streamlining the management board’s regulatory course of. The effort started in 2023 following a mandate by Republican Gov. Joe Lombardo in his first State of the State tackle to eradicate outdated rules. 

“I think having a background in manufacturing helps in the process,” Dreitzer stated.

It’s been a busy few months for the brand new chairman. 

He took over the authorized struggle began by Hendrick earlier this yr to maintain Kalshi and different federally regulated prediction markets from providing sports activities contracts in Nevada. Also, sports activities betting operators FanDuel and DraftKings, which have by no means sought Nevada licensing, formally agreed to remain out of the Silver State to focus efforts on launching prediction markets within the U.S.

“It’s a difficult problem for us,” Dreitzer stated, including that Nevada views sports activities occasion contracts as wagers that needs to be regulated and taxed by the state.

“There are decades of precedent that this is a states’ rights issue and Nevada is within its proper purview,” he stated.

And then there’s been self-discipline for brick-and-mortar casinos. In November, the management board reached a stipulated settlement with Caesars Entertainment through which the gaming firm agreed to pay a $7.8 million superb to cowl a five-count grievance after the state gaming brokers discovered unlawful bookmaker Mathew Bowyer had gambled tens of millions of {dollars} at Caesars Palace and a number of other of the corporate’s different Strip properties over seven years.

The superb adopted $10.5 million paid by Resorts World Las Vegas in March and $8.5 million from MGM Resorts International in April over violations of anti-money laundering legal guidelines. 

The mixed settlements delivered to mild the necessity to make modifications to strengthen the state’s anti-money laundering rules.

“Fines are understood and important, but the other part is having regulations that will enable licensees to have better information so they can make better decisions about whether or not to allow credited folks to play at their places,” Dreitzer stated.

Earlier this month, the management board nominated one other unlawful bookmaker, Wayne Nix, for inclusion in Nevada’s List of Excluded Persons, generally known as the Black Book. Dreitzer stated Bowyer can be nominated on the board’s assembly in January.

“It’s an important tool and sends a message that Nevada, the oldest and most well-established regulatory body in the world, is the gold standard of regulation,” he stated. “We must use all the tools available to us.”

Timing is every part

Dreitzer’s CEO expertise supplied an uncommon path to the management board chairmanship, which had historically been an individual coming by a state company or different authorities work. 

The final time an identical transfer occurred was in 2009, when Republican Gov. Jim Gibbons appointed gaming government Mark Lipparelli to the management board. Lipparelli grew to become chairman two years later and served within the place for 21 months earlier than his appointment to a vacant Nevada state Senate seat.

For Dreitzer, it was good timing. 

Hendrick introduced in January that he would step down as chairman in June, following the legislative session, permitting Lombardo time to pick a brand new head of the statewide, 400-person company charged with regulating and imposing the legal guidelines related to Nevada’s largest business. 

Meanwhile, Las Vegas-based gaming tools developer Gaming Arts, the place Dreitzer had been CEO since 2018, announced in April that the privately owned firm was being bought by Germany-based Merkur Group. 

In addition to working for Gaming Arts, Dreitzer hung out as an government with Mikohn Systems, president of Australia-based Ainsworth Game Technology’s North American division in Las Vegas and was the chief working officer of take a look at lab and gaming advisor BMM Americas.

As a licensed legal professional, Dreitzer labored with Hendrick within the legal professional normal’s workplace’s gaming division within the late Nineteen Nineties. He reached out to his longtime colleague to inquire in regards to the management board chairmanship. Lombardo introduced Dreitzer’s appointment in April, and Hendrick left in June after the legislative session ended.

“I’m honored with the ability to have this position and make the kind of impact that I think this role can offer,” Dreitzer stated. “This is the only job that I would have taken. The timing worked out because the merger was finalizing around the same time that Kirk was leaving this role.”

The management board chairman earns more than $211,000 as of 2023. Most gaming CEOs can earn double that quantity due to bonuses and inventory choices based mostly on efficiency.

“I don’t know how many people would be in a situation, 30 years into a career, that they would take a government role like that,” Hendrick stated. “So I think that says a lot about his character and his financial sacrifice to take this role on behalf of the state.”

Hendrick stated Dreitzer brings a unique set of abilities to the board, having sensible expertise with privately held and publicly traded firms.

“Mike possesses a uniquely qualified vision for the technology division,” Hendrick stated. “I’ve always believed that having effective regulation doesn’t mean that you have to stifle lawful innovation.”

‘I believe that licensees want to do the right thing’

Dreitzer is the third appointed board chairman that Nevada Gaming Commission Chairwoman Jennifer Togliatti has labored with since 2021. The full-time management board makes suggestions on licensing and different issues to the part-time fee.

“He’s done a remarkable job of getting up to speed quickly and trying to move projects forward,” Togliatti stated. “I’ve enjoyed working with him. He has a good grip on what’s going on and what needs to be done.”

Dreitzer stated even together with his gaming business expertise, there isn’t “a definitive formula” that makes up the place of management board chairman. He stated having regulators from completely different backgrounds provides to the panel’s total perspective and the regulatory course of. 

The present board contains former Las Vegas Municipal Judge George Assad, who has been on the panel since January 2023, and legal professional Chandeni Sendall, who served within the Reno City Attorney’s Office for 10 years as a deputy metropolis legal professional. She was appointed in January.

Dreitzer stated he took some inspiration from Hendrick, who referred to as gaming regulation “a continual improvement project and the job is never done.” 

As a CEO, Dreitzer handled gaming regulators in additional than 200 jurisdictions worldwide.

“I believe that licensees want to do the right thing,” he stated. “Are there unhealthy apples? Sure. It’s our job to make use of each software now we have to have the ability to root them out and to enhance all of those areas.

Dreitzer, whose time period expires in January 2027 and is anticipated to earn a full four-year time period if Lombardo is re-elected, stated he isn’t pondering that far forward. His focus is on enhancing gaming know-how, coping with prediction markets and making regulation extra environment friendly.

“These are all things I’m focusing on. The future will take care of itself,” Dreitzer stated.