Saturday, May 24, 2003
Copyright © Las Vegas Review-Journal

Nevada regulators OK rules about tax audits, cashless slots

The Nevada Gaming Commission has approved regulations to ensure comprehensive and faster tax audits of the state's largest casinos, along with rules allowing casinos to expand the use of cashless slot machines.

The commission on Thursday also blocked a plan to equip slot machines with debit card devices over concerns such access could lead to more problem gamblers.

Under the new rules, casinos that generate more than $10 million in gambling revenue will have two years to install online systems that transmit cash information and allow regulators to electronically audit casinos.

Now regulators perform manual audits by reviewing accounting records and slot machine output.

The changes, about 2 1/2 years in the making, also will allow for the expansion of so-called cashless slots and a variety of other systems that transfer money electronically.

Many casinos already have cashless machines that accept and dispense redeemable paper vouchers. Until now, regulators have been using outdated rules to oversee such machines.

The new rules govern a variety of electronic fund transfer systems that could make slot play more convenient for gamblers, including the ability to transfer money from the casino cage directly to a machine or transfer credits from machines into a personalized casino account. Electronic monitoring systems also benefit casinos by allowing them to better track their customers and market to gamblers, regulators said.

The commission decided to block the debit card plan after the three-member Gaming Control Board said no research has been conducted on the use of the money cards in slot machines.

The state Legislature in 1995 outlawed the use of credit cards in gambling devices over concerns about gambling addiction.