New Mexico Senate passes bill to enhance gaming industry background checks

The Senate Judiciary Committee convened on March 8, 2025, to discuss critical updates to New Mexico's gaming regulations, focusing on Senate Bill 302. The bill aims to enhance regulatory oversight within the gaming industry by expanding background check requirements for individuals seeking gaming work permits and unescorted access to gaming control board facilities.

The meeting began with a presentation by a committee member who emphasized the importance of strict safeguards in the highly regulated gaming industry to prevent fraud and criminal activities. The proposed legislation seeks to modernize these safeguards by ensuring that all individuals involved—licensees, employees, and contractors—undergo comprehensive background checks, including national criminal history screenings and financial disclosures.

Terry, the executive director, elaborated on the two main components of Senate Bill 302. The first component addresses background checks for contractors with unescorted access to gaming facilities. The second component amends the application and renewal requirements for gaming licensees, particularly those with findings of certification or suitability.

The bill is a response to a federal Department of Justice audit conducted two years prior, which identified a lack of clear statutory authority for the New Mexico Gaming Control Board to assess criminal history information for contractors and raffle applicants. Although the board had existing rules for conducting background checks, these were deemed insufficient to meet federal requirements. The DOJ mandates that access to criminal history information must be explicitly established in state law for regulatory agencies to utilize in licensing matters.

Without this statutory authority, the Gaming Control Board's ability to conduct thorough background checks could be compromised, potentially allowing unqualified or high-risk individuals access to sensitive gaming environments. Senate Bill 302 aims to codify existing practices into law, thereby correcting the DOJ audit findings and ensuring continued access to necessary criminal history data.

Additionally, the bill proposes changing the frequency of background checks for findings of suitability and work permit holders from an annual basis to every three years. This adjustment is justified as the current annual checks are considered overly burdensome for both licensees and the regulatory agency.

The committee's discussions highlighted the importance of these regulatory updates in maintaining the integrity and safety of New Mexico's gaming industry. The meeting concluded with a consensus on the necessity of advancing Senate Bill 302 to ensure compliance with federal standards and enhance the state's oversight capabilities.