Friday, April 13, 2007

An Assembly panel voted for a casino regulation measure that left out a
business expansion amendment sought by a company that led the 2005 effort to
legalize hand-held, wireless gambling devices in Nevada. The Judiciary
Committee voted on Monday for AB535, a bill sought by the state Gaming
Control Board, minus changes sought by Phil Flaherty of Cantor Fitzgerald LP
which would have made clear that licensed wireless device companies could
run race and sports book operations. The change was opposed by Leroy's Race
and Sports Book and the Club Cal Neva, which combined have about 100 legal
race-sports betting operations around the state -- and which also have
existing casinos as their base, in line with existing state rules. Control
Board Chairman Dennis Neilander also expressed concerns about the Cantor
amendment, saying he didn't want AB535 weighted down with other changes. He
added that Cantor might want "to find another horse to ride." Attorney Bob
Faiss, representing Cantor, said after the committee hearing that Monday's
hearing was the first chance Cantor had to present its proposal, and
committees are under pressure to complete work on many bills by Friday.
Asked whether Cantor would try to attach the amendment to another measure or
to AB535 once it moves from the Assembly to Senate, Faiss added, "We're
evaluating the situation." Mike Alonso, representing Reno's Club Cal Neva,
said Cantor should have to meet the same requirements of other race and
sports bet businesses, which is to have a casino as a base of operations.
"It unlevels the playing field from our standpoint," Alonso said of the
proposed amendment. With the amendment, Alonso said wireless device
companies could have run race and sports books without even having a mobile
gambling device that has won final approval from regulators. Keith Lee,
representing Leroy's, also opposed the amendment, saying it would let
wireless companies get around the existing requirement for a "bricks and
mortar" casino operation. Flaherty said Cantor, the first of three companies
now licensed for wireless gambling devices in Nevada, is preparing its
product for final testing. He said that when casino executives discuss use
of the devices they also want to know about race and sports book services.
Cantor already is involved in such betting in England.