The Nevada Gaming Commission (“Commission”) recently amended Commission Regulation 5 to (i) allow hosting centers located outside of Nevada to house Nevada-regulated gaming equipment provided they register with the Gaming Control Board (“Board”) and satisfy certain additional criteria; and (ii) expand the scope of Nevada-regulated gaming equipment that may be housed at hosting centers. Such changes were sought by the gaming industry as technology has evolved (and continues to evolve) at a dramatic pace and the amendments will allow multi-jurisdictional gaming licensees to, among other things, consolidate certain technology in a central location.
Prior to the amendment, only hosting centers located within the State of Nevada were eligible to register with the Board. Additionally, hosting centers were only permitted to house “certain parts of computer systems or associated components of games, gaming devices, cashless wagering systems or race books or sports pool operations”.1 Now, hosting centers are permitted to be located outside of Nevada and house associated equipment (in addition to cashless wagering systems, games, gaming devices and race book operations and sports pool operations).2
Importantly, a hosting center, regardless of whether it is located in the State of Nevada or, as newly approved, outside the state, must be registered with the Board before it can house Nevada-regulated gaming equipment. In other words, Nevada gaming licensees may only store their Nevada-regulated equipment at hosting centers with active registrations.
