Nevada gamblers have now been authorized by the Gaming Commission to use their wagering accounts at the casino’s restaurants, retail stores and other establishments. Previously, casino patrons could use those wagering accounts only for gambling, but a push by cashless gaming companies like Sightline Payments led to the change.
Regulators’ Decision on Off-Property Use
Regulators fell short, however, of granting a request to use the accounts for spending off the property and out of state.
Industry Reactions to the Change
“The changes will allow gaming operators and their payments’ partners to launch products that enhance the customer experience,” said Sightline CEO Omer Sattar. “This is an important next step for gaming payments innovations, affirming Nevada’s status as an industry leader.”
Further Discussions Needed on Wagering Account Use
Senior Deputy Attorney General John Michela said further discussion should engaged in as to whether the industry would like wagering accounts to be used anywhere, just like a debit card, and whether this broad use of wagering accounts would be in line with the Bank Secrecy Act and other federal banking laws.
Concerns Raised Over Wagering Account Expansion Authority
The one hangup by Commission members was a section of the proposed regulations that would have given authority to the chairperson of the Gaming Control Board to expand wagering-account spend on the property.
Regulation Limits on Board Chair’s Authority
Michela said the regulation limits the ability of the Board chair, in that the wagering account is restricted to Nevada casino properties. The chair already has discretion on how funds are deposited to and withdrawn from a wagering account and how debits are made to wagering accounts. “This expansion would be limited to purchases made in Nevada at the licensee, affiliate or tenant.”
Concerns Over Future Technology Approval
Commissioner Brian Krolicki said, “We want to innovate and help the industry, and thrive and compete against any other jurisdiction. I totally get that. But when we’re talking about racebooks, sportsbooks, and mobile-gaming systems, a technology could come in and be approved by the chair. That’s kind of my rub. Sightline came in with a concept. They want to make sure that effort isn’t impaired by what we’re doing.”
Industry Waiting for Commission’s Decision
Others in the industry are waiting for the Commission to approve regulations and Krolicki said that he wanted to be comforted about what’s coming in the future.
Concerns Over Foreign Corruption and Money Laundering Risks
“These are big deals,” Krolicki said. “We’re told to always be worried about foreign corrupt practices and money laundering, but that’s not what we’re doing here. Technologies do touch those areas. I just don’t know if this has been tied up into a package. I’m a little worried about unintended consequences.”
Technology Approval and Restrictions
Chief of the Gaming Control Board Technology Division Jim Barbee said that an unnamed manufacturer has approved technology that has the ability to do this now, but conditioned it so it can’t be used at this time. That’s what spurred the conversation about someone using their wagering account in the gift shop or paying for dinner or a show on the property, he added.
Potential Future Use of Wagering Accounts for Purchases
“What if they wanted to use the same wagering account they use to put credits on a slot machine to make a purchase at a tenant in the casino mall?” Barbee said. “The technology currently exists to do that, but it’s not approved here. At least one other manufacturer has it queued up and could roll it out in short order, should they have a customer for it and should the customer wish to develop that further.”
Sightline’s View on Wagering Account Flexibility
Krolicki said that he’s seen only Sightline giving testimony on the regulation change and wondered if the Nevada Resort Association weighed in. “Is there demand for this? Or do some clever people just believe there will be a demand if it’s approved and they can market this new product?” Krolicki said. Barbee said the NRA hasn’t commented. But he called what’s happening is the Control Board trying to keep pace with gaming technology and to bring new ideas and features into the state.
Approval Process for New Technologies
He described the approval process when a manufacturer submits a technology to be reviewed to the Technology Division. Something novel might require him to confer with the Board chair. A denial can be appealed to the Commission.
Industry’s Interest in the Regulation Change
Jennifer Carleton, chief legal officer for Sightline, the digital-payments company, talked about industry interest in the regulation change. “The problem this proposed regulation and technology are trying to solve involves two main issues. Fees are always involved when a player moves money. When the customer uses it for internet wagering, places a sportsbook bet, or plays a slot machine or table game, then concludes their gambling and wants to use those funds for purposes besides gaming, they have to move that money out of the wagering account. Again, fees are involved typically borne by the operator. So the operator has an interest in allowing the customer to use those funds in real time versus having to move their money out of the wagering account to have access to things other than wagering. This churn can add up to millions of dollars a year for operators.”
Sightline’s Push for Broader Use of Wagering Accounts
Carleton said operators they’ve spoken to are interested in the product and that they’ve met with regulators for the last 18 months to explain the issue and help them identify problems with the churn and what the technology can accomplish.
Potential Expansion Beyond Affiliates and Tenants
“Obviously, we prefer it be expanded beyond the affiliates and tenants and allow patrons to use wagering accounts anywhere, but we recognize that maybe Nevada isn’t ready for that yet,” Carleton said. “We have approval in a number of other jurisdictions and states to move forward with that concept and have signed agreements with operators to do that outside of Nevada.”
Concerns Over Board Chair’s Unilateral Authority
Togliatti continued to raise concerns that the Board chair would have unfettered discretion of potential uses for the spending of wagering accounts. “It’s not a toe or a foot in the water. We’re up to our knees with this one. And we’re getting our hair wet.”
Uncertainty About Future Expenditures
Barbee said they didn’t have the ability to include every potential expenditure that may come in the future and would thus require going through the Commission approval process again.
Commissioner’s Concerns About Unintended Consequences
“That’s exactly the issue: We don’t know what’s coming,” Krolicki responded.
Commission’s Involvement in the Approval Process
Togliatti asked if the Commission will get a memo when any issues are approved by the chair. Her experience says no and she continued to question the regulation as written. “People think the Commission is a rubber stamp, but we’re here for a reason,” Togliatti said. “As the time goes by, it’s being eroded, and I’m concerned about that. I don’t have a problem with the concept. It’s the language where there’s zero involvement on our part. I agree we should be on the cutting edge. I feel like we’re the last to know in that regard, and that’s the part I don’t love.”
Gaming Control Board Chair Responds to Concerns
Gaming Control Board Chair Kirk Hendrick said he understands her and other Commission members’ concerns.
“I understand your concerns, but if the Commission gets involved in day-to-day operations, it will slow down the process. This has been in the hopper for a year and a half and we’ve taken an intermediate step. If we have to keep coming back to the Commission, it will put us behind other states and make our operators and manufacturers concerned that Nevada isn’t moving efficiently.”
Krolicki’s Ongoing Concerns and Suggestions for Sunset Clause
Krolicki said he appreciated Hendrick’s comments, but was still worried about the unknowns. He maintained that he would like to revisit the issue again to see if there are unintended consequences and suggested a possible sunset of the regulation.
Hendrick’s Response to Concerns Over Future Regulation
Hendrick said if the concern is about the Board chair the language could be rewritten to say it could be stated for any purpose on the property. He said any sunset of the regulation for a year or two would be cumbersome in the process. He said he’d be glad to give updates to the Commission.
Concerns About Proprietary Products and First-Mover Advantage
“We don’t want to get into things that are in the hopper,” Hendrick said. “A lot of these manufacturers want first-mover status. I don’t want to talk about their potential products at a public meeting. We’ve had three submittals in the last quarter who want to do this. The chair has approved their right to do it, but you may not be able to get too deep into it.”
Wagering Account Update and Potential Changes in 2025
The Commission asked for a wagering update in December 2025. Togliatti was told by legal staff that if members are dissatisfied with the regulation, they have the ability to change it.
Competitive Advantage for Casinos Using Wagering Accounts
In recommending approval, Commissioner George Markantonis, a former member of the NRA, said every casino will be “banging on the doors to have this. Gamblers don’t want to go to an ATM to draw out cash or use a credit or debit card when they can use their wagering accounts to pay for drinks at a bar.”