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Nevada Gaming Regulators Begin Overseeing Las Vegas Nightclubs and Dayclubs

The nightclub and dayclub industry has become big business for casinos along the Las Vegas Strip. State gaming regulators are now requiring resort operators to take a more stringent approach in monitoring activity inside club venues. These new regulations came out of the 2015 Nevada Legislative session and were approved by the Nevada Gaming Commission.

Under the new regulations, casinos will designate an employee to oversee and monitor the clubs. That employee must be licensed under state gaming regulations as a key employee. Also, promoters and independent hosts for the clubs will have to file written agreements and register with the Nevada Gaming Control Board.

Clubs are a big draw for Las Vegas tourists, particularly the younger customer base that spends time on the Strip enjoying the many lucrative non-gaming entertainment attractions, rather than gambling. According to the Nevada Gaming Control Board, more than 60 percent of the total revenue generated by Las Vegas resorts last year came from non-gaming sources, such as hotel rooms, shopping venues, restaurants, entertainment attractions, and clubs.

Other U.S. jurisdictions and tribal gaming markets are beginning to mirror Las Vegas’s push to add non-gaming attractions. Other gaming regulatory bodies may elect to adopt club venue regulations like Nevada’s.

The club venue regulations identify certain acts as unsuitable methods of operation and expand the requirements for reporting criminal violations. The clubs are also required to file annual reports on their activities.

Additionally, the club venue regulations impose a new registration requirement upon all club venue supervisors, managers, security and surveillance personnel, servers, server assistants, bussers, restroom attendants, and anyone employed or contracted to offer hosting or VIP services.

Security and safety requirements are also included. Operators must assess their calendars on a regular basis to consider the impact on attendance and determine the appropriate number of security personnel needed for an event.

Clubs must also abide by certain requirements for emergency medical support depending on the anticipated size of their events.

Nevada Gaming Commission Chairman Tony Alamo Jr. said the clubs have been good for the gaming industry, providing an economic “shot in the arm.” However, he also said that the clubs need to be controlled and regulated. “I believe these regulation changes do what we set out to do,” Chairman Alamo said.

©2020 Greenberg Traurig, LLP. All rights reserved. National Law Review, Volume VI, Number 177

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About this Author

Michael Bonner, Greenberg Traurig Law Firm, Las Vegas, Corporate, Real Estate and Finance Law Attorney
Shareholder

Michael Bonner is Co-Managing Shareholder of the Las Vegas Office and concentrates his practice in the areas of corporation finance, corporate governance, business transactions, securities and gaming.

He represents clients in corporate securities and other business transactions; including acting as lead counsel on mergers and acquisitions, public securities offerings, private placements and a variety of financing, acquisition and restructuring transactions for publicly held and privately held business entities. Mr. Bonner...

702-599-8030
Erica Okerberg, Greenberg Traurig Law Firm, Las Vegas, Corporate and Gaming Law Attorney
Associate

Erica L. Okerberg focuses her practice on gaming law, including licensing and regulatory work; and promotional law, including sweepstakes and social gaming. Erica's experience includes: preparing and coordinating gaming applications and gaming renewals for individuals and entities in the U.S. and international jurisdictions; representing clients during the preparation and adoption of Nevada gaming regulations; preparing materials for sweepstakes, contests, and other promotional offers; as well as counseling clients regarding social gaming and skill games.

702-599-8073