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Bill would let regulators disgorge profits of illegal online gaming, increase penalties targeting offshore apps
Summary
Sen. Rochelle Winn and witnesses told the Assembly Judiciary Committee that Senate Bill 256 would add disgorgement to Nevada’s enforcement tools, elevate penalties for some illegal online gaming and enable prosecution of operators that target Nevada residents from outside the state.
Sen. Rochelle Winn presented Senate Bill 256 to the Assembly Judiciary Committee in a hybrid hearing in Carson City and Las Vegas, saying the measure “revises provisions related to gaming, more specifically illegal gaming.” The sponsor and witnesses framed the bill as a consumer‑protection and revenue‑recovery tool aimed at offshore apps and sweepstakes sites that take unregulated wagers from Nevada residents.
Cindy Mora, a legislative intern for Sen. Winn, described the bill as “a crucial step forward in promoting fairness and integrity within the Nevada gaming industry” and said SB256 would require owners of illegal online gaming or sweepstakes platforms to forfeit gross receipts and profits obtained from unlawful wagering. Mora said those forfeited funds would be directed to the state general fund.
Darren Dorsey, president and CEO of the Association of Gaming Equipment Manufacturers (AGEM), told the committee SB256 “adds the penalty of disgorgement to the tools the Gaming Control Board already has to fight illegal gaming” and that the association supports the measure as an additional deterrent. Testimony described three main components: (1) adding disgorgement of profits and gross receipts as an enforcement remedy; (2) increasing criminal penalties so some offshore operations that take wagers from Nevada residents are charged at a higher level (the bill would raise certain offenses from misdemeanor to gross misdemeanor); and (3) extending liability so operators outside Nevada that solicit Nevada residents can be prosecuted.
Committee members asked about the practical reach of prosecutions when operators are overseas and how many cases have been successfully prosecuted under current law. Dorsey and Sen. Winn said the measure is “another tool in the toolbox” and acknowledged cross‑border enforcement is challenging; they said disgorgement may provide additional leverage against large commercial illegal operators. Committee counsel Carly O'Krent noted on the record that the term “person” in the statute is defined in NRS 0.039 to include natural persons and business entities, which supports applying disgorgement to companies as well as individuals.
Witnesses stressed the bill targets illegal operations, not lawful online gaming: “This isn't about stopping online gaming. It's about making sure that it's done legally and fairly,” Sen. Winn said. Organized gaming interests and trade groups testified in support, including the Nevada Resort Association and the Vegas Chamber. No callers registered opposition during the hearing; the sponsor offered to provide additional details if members requested clarifications.
SB256 would add disgorgement to the state’s enforcement tools and increase penalties for illegal online gaming that targets Nevada residents; the hearing record included discussion of a $50,000 statutory fine referenced by committee members as an example and the sponsors’ emphasis that disgorgement would address profitability beyond fixed‑dollar fines.
