Nevada approves bill against illegal gambling with fines and sentences of up to 10 years
The state of Nevada, known worldwide for its massive casino industry, is discussing new projects and moving towards a more regulated market and combating illegal online gambling. The state Senate unanimously approved Bill 256 (SB 256). Proposed by , the bill aims to impose harsher penalties on unlicensed gambling operators, including sweepstakes casinos and offshore sites that accept bets from Nevada residents.
Main proposals of SB 256
SB 256 provides for several changes in the state’s gambling laws. They are:
- Increase in penalties: Offences that were previously considered misdemeanours may be reclassified as gross misdemeanours, with prison sentences ranging from one to ten years and fines of up to $50,000.
- Confiscation of illicit profits: Operators convicted of illegal gambling activities will be required to return all profits obtained, which will be directed to the state’s general fund.
- Expanded jurisdictional reach: The state may prosecute illegal operators even if they are based outside Nevada, as long as they accept bets from its residents.
Economic impact and industry support
According to studies by the American Gaming Association, unregulated offshore betting caused a loss of more than $17 billion in revenue for licensed operators in the USA last year. In Nevada, although the exact figure has not yet been calculated, it is believed that losses have exceeded tens of millions of dollars.
The bill received support from several entities, including the Association of Gaming Equipment Manufacturers (AGEM), the Nevada Resort Association, and the Vegas Chamber of Commerce. Daron Dorsey, president of AGEM, commented that the confiscation of profits is an effective tool to punish illegal operators and protect consumers.
Consumer protection and prevention of problem gambling
In addition to protecting the legal industry and licensed operators, SB 256 also takes into account the protection of players. Illegal operators often do not offer responsible gambling protocols or other protections required by regulated markets.
Trey Delap, executive director of the Nevada Council on Problem Gambling, declared support for the project, suggesting that part of the recovered funds be allocated to prevention and treatment programmes for gambling addiction.
Challenges in law enforcement
Despite all this progress, effective enforcement of the law still faces some challenges, especially when operators are based abroad. Representative Erica Roth questioned the number of cases brought against illegal operators under current legislation, but the necessary data were not available.
Senator Nguyen acknowledged that SB 256 is not a complete solution but provides additional tools to combat illegal gambling.
But Nevada is not alone in this initiative. Other states, such as Montana, are also adopting measures to restrict or prohibit online sweepstakes casinos. Montana’s SB 555, for example, seeks to specify what constitutes illegal online gambling in the state.
Bill 256 represents a significant step in the fight against illegal gambling in Nevada. By imposing harsher penalties and expanding the reach of state authorities, the legislation aims to protect both the legal industry and consumers. Although challenges remain, especially in enforcement against foreign operators, SB 256 establishes a solid foundation to tackle the growing problem of illegal online gambling.
Nevada’s Bill 256 is a significant step against the illegal gambling market, and the trend is to close it as much as possible so that the industry eliminates illegality. The state of Nevada is moving fast and taking good strategies, just like other already regulated countries.
This article was first published in Portuguese on 2 May 2025.
