1. The Commission shall, with the advice and assistance of the Board, adopt regulations governing: (a) The licensing and operation of interactive gaming; and (b) The registration of service providers to perform any action described in paragraph (b) of subsection 7 of NRS 463.677 . 2. The regulations adopted by the Commission pursuant to this section must: (a) Establish the investigation fees for: (1) A license to operate interactive gaming; (2) A license for a manufacturer of interactive gaming systems; (3) A license for an interactive gaming service provider to perform the actions described in paragraph (a) of subsection 7 of NRS 463.677 ; and (4) Registration as a service provider to perform the actions described in paragraph (b) of subsection 7 of NRS 463.677 . (b) Provide that: (1) A person must hold a license for a manufacturer of interactive gaming systems to supply or provide any interactive gaming system, including, without limitation, any piece of proprietary software or hardware; (2) A person must hold a license for an interactive gaming service provider to perform the actions described in paragraph (a) of subsection 7 of NRS 463.677 ; and (3) A person must be registered as a service provider to perform the actions described in paragraph (b) of subsection 7 of NRS 463.677 . (c) Except as otherwise provided in subsections 6 to 10, inclusive, set forth standards for the suitability of a person to be: (1) Licensed as a manufacturer of interactive gaming systems; (2) Licensed as an interactive gaming service provider as described in paragraph (a) of subsection 7 of NRS 463.677 that are as stringent as the standards for a nonrestricted license; or (3) Registered as a service provider as described in paragraph (b) of subsection 7 of NRS 463.677 that are as stringent as the standards for a nonrestricted license. (d) Set forth provisions governing: (1) The initial fee for a license for an interactive gaming service provider as described in paragraph (a) of subsection 7 of NRS 463.677 . (2) The initial fee for registration as a service provider as described in paragraph (b) of subsection 7 of NRS 463.677 . (3) The fee for the renewal of such a license for such an interactive gaming service provider or registration as a service provider, as applicable, and any renewal requirements for such a license or registration, as applicable. (4) Any portion of the license fee paid by a person licensed to operate interactive gaming, pursuant to subsection 1 of NRS 463.770 , for which an interactive gaming service provider may be liable to the person licensed to operate interactive gaming. (e) Provide that gross revenue received by an establishment from the operation of interactive gaming is subject to the same license fee provisions of NRS 463.370 as the games and gaming devices of the establishment, unless federal law otherwise provides for a similar fee or tax. (f) Set forth standards for the location and security of the computer system and for approval of hardware and software used in connection with interactive gaming. (g) Define interactive gaming system, manufacturer of interactive gaming systems, operate interactive gaming and proprietary hardware and software as the terms are used in this chapter. 3. Except as otherwise provided in subsections 4 and 5, the Commission shall not approve a license for an establishment to operate interactive gaming unless: (a) In a county whose population is 700,000 or more, the establishment is a resort hotel that holds a nonrestricted license to operate games and gaming devices. (b) In a county whose population is 52,000 or more but less than 700,000, the establishment is a resort hotel that holds a nonrestricted license to operate games and gaming devices or the establishment: (1) Holds a nonrestricted license for the operation of games and gaming devices; (2) Has more than 120 rooms available for sleeping accommodations in the same county; (3) Has at least one bar with permanent seating capacity for more than 30 patrons that serves alcoholic beverages sold by the drink for consumption on the premises; (4) Has at least one restaurant with permanent seating capacity for more than 60 patrons that is open to the public 24 hours each day and 7 days each week; and (5) Has a gaming area that is at least 18,000 square feet in area with at least 1,600 slot machines, 40 table games, and a race book and sports pool. (c) In all other counties, the establishment is a resort hotel that holds a nonrestricted license to operate games and gaming devices or the establishment: (1) Has held a nonrestricted license for the operation of games and gaming devices for at least 5 years before the date of its application for a license to operate interactive gaming; (2) Meets the definition of group 1 licensee as set forth in the regulations of the Commission on the date of its application for a license to operate interactive gaming; and (3) Operates either: (I) More than 50 rooms for sleeping accommodations in connection therewith; or (II) More than 50 gaming devices in connection therewith. 4. The Commission may: (a) Issue a license to operate interactive gaming to an affiliate of an establishment if: (1) The establishment satisfies the applicable requirements set forth in subsection 3; (2) The affiliate is located in the same county as the establishment; and (3) The establishment has held a nonrestricted license for at least 5 years before the date on which the application is filed; and (b) Require an affiliate that receives a license pursuant to this subsection to comply with any applicable provision of this chapter. 5. The Commission may issue a license to operate interactive gaming to an applicant that meets any qualifications established by federal law regulating the licensure of interactive gaming. 6. Except as otherwise provided in subsections 7, 8 and 9: (a) A covered person may not be found suitable for licensure under this section within 5 years after February 21, 2013; (b) A covered person may not be found suitable for licensure under this section unless such covered person expressly submits to the jurisdiction of the United States and of each state in which patrons of interactive gaming operated by such covered person after December 31, 2006, were located, and agrees to waive any statutes of limitation, equitable remedies or laches that otherwise would preclude prosecution for a violation of any provision of federal law or the law of any state in connection with such operation of interactive gaming after that date; (c) A person may not be found suitable for licensure under this section within 5 years after February 21, 2013, if such person uses a covered asset for the operation of interactive gaming; and (d) Use of a covered asset is grounds for revocation of an interactive gaming license, or a finding of suitability, issued under this section. 7. The Commission, upon recommendation of the Board, may waive the requirements of subsection 6 if the Commission determines that: (a) In the case of a covered person described in paragraphs (a) and (b) of subsection 1 of NRS 463.014645 : (1) The covered person did not violate, directly or indirectly, any provision of federal law or the law of any state in connection with the ownership and operation of, or provision of services to, an interactive gaming facility that, after December 31, 2006, operated interactive gaming involving patrons located in the United States; and (2) The assets to be used or that are being used by such person were not used after that date in violation of any provision of federal law or the law of any state; (b) In the case of a covered person described in paragraph (c) of subsection 1 of NRS 463.014645 , the assets that the person will use in connection with interactive gaming for which the covered person applies for a finding of suitability were not used after December 31, 2006, in violation of any provision of federal law or the law of any state; and (c) In the case of a covered asset, the asset was not used after December 31, 2006, in violation of any provision of federal law or the law of any state, and the interactive gaming facility in connection with which the asset was used was not used after that date in violation of any provision of federal law or the law of any state. 8. With respect to a person applying for a waiver pursuant to subsection 7, the Commission shall afford the person an opportunity to be heard and present relevant evidence. The Commission shall act as finder of fact and is entitled to evaluate the credibility of witnesses and persuasiveness of the evidence. The affirmative votes of a majority of the whole Commission are required to grant or deny such waiver. The Board shall make appropriate investigations to determine any facts or recommendations that it deems necessary or proper to aid the Commission in making determinations pursuant to this subsection and subsection 7. 9. The Commission shall make a determination pursuant to subsections 7 and 8 with respect to a covered person or covered asset without regard to whether the conduct of the covered person or the use of the covered asset was ever the subject of a criminal proceeding for a violation of any provision of federal law or the law of any state, or whether the person has been prosecuted and the prosecution terminated in a manner other than with a conviction. 10. It is unlawful for any person, either as owner, lessee or employee, whether for hire or not, either solely or in conjunction with others, to operate interactive gaming: (a) Until the Commission adopts regulations pursuant to this section; and (b) Unless the person first procures, and thereafter maintains in effect, all appropriate licenses as required by the regulations adopted by the Commission pursuant to this section. 11. A person who violates subsection 10 is guilty of a category B felony and shall be punished by imprisonment in the state prison for a minimum term of not less than 1 year and a maximum term of not more than 10 years or by a fine of not more than $50,000, or both.
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