With 2023 just weeks away, Nevada’s gaming attorneys are gearing up for another year of change within an ever-evolving industry.
Scott Scherer, a gaming attorney with Brownstein Hyatt Farber Schreck and a former member of the Nevada Gaming Control Board, said the continued spread of legalized sports betting outside of Nevada will continue to reshape the overall industry.
That’s just one area he and other local gaming attorneys will keep an eye on in 2023.
Though the number will likely change again soon, 35 states, along with the District of Columbia, have passed laws to allow for sports betting.
“Legal sports betting has spread rapidly throughout the United States,” Scherer said. “One might say that this trend is not going to have an impact on Las Vegas, but there are a number of changes that will become more apparent in the new year.”
Scherer said a trend likely to continue is the spread of sports betting advertising.
Whether it be movie star Jamie Foxx starring in BetMGM television and online commercials or Peyton and Eli Manning pitching Caesars Sportsbook offerings, consumers are being peppered with sports betting ads.
Contrary to what some industry watchers feared years ago, however, the rise in popularity of sports betting elsewhere does not seem to be hurting business in Las Vegas.
In October, Nevada sportsbooks won just under $57 million, up nearly 18% from the same month in 2021, according to state gaming officials.
During that month, 67% of all sportsbook wagers in the state were made on mobile devices, another trend to track as consumers shift their habits based on available technologies.
Overall, there’s been a clear shift in recent years in how the public and sports leagues think about sports betting. In short, it’s much more accepted now.
“We have seen a huge increase in sportsbook advertising on national television and sponsorships with sports teams and sports leagues,” Scherer said. “After fighting the gaming industry for years, the legalization of sports betting across the country has led many sports leagues to drop their opposition and partner with the industry.”
As sports betting becomes the norm in the U.S. instead of the exception, it’s likely that more European companies will want to do business in the states, Scherer said.
“When Nevada was the only state with legal sports betting, most European companies didn’t see sufficient benefit to enter the U.S. market,” he said. “Many of those companies now see opportunities here. A lot of new competitors are beginning operations and introducing new technologies in other states. Those that are successful will catch the attention of Nevada operators and will be encouraged to seek licensing and approval of their technology in Nevada.”
Scherer said it’s likely new cashless technologies and innovations will continue to surface in the gaming industry, a trend in recent years.
“A number of companies are introducing convenient, cashless technologies that are common in other industries,” Scherer said. “Over time, those companies are demonstrating to regulators that their technologies are secure, reliable and accountable. In 2023, we will see these payment technologies continue to expand, providing more convenience for customers.”
Dennis Gutwald, another longtime Las Vegas gaming attorney, said he expects many of the gaming industry and gaming law trends in 2023 to be similar to what was seen this year.
“I do think it’s notable that from the COVID-19 shutdown [in 2020] through today, gaming just keeps going full blast,” said Gutwald, a partner at McDonald Carano. “As far as evolution, I don’t think it was a super exciting year for gaming.”
One area that Gutwald thinks could evolve soon is the realm of online gaming in Nevada.
As of now, the only legal online gaming allowed in the state is poker. As other states and jurisdictions around the country make moves toward online gaming, Gutwald wondered whether lawmakers here would make changes to keep pace.
“Nevada prides itself on being the gold standard in gaming, but we have lagged behind the other jurisdictions in online gaming,” he said. “At some point, Nevada’s Legislature is going to have to decide if it wants to offer other forms of gaming, just to keep up.”
The late Sheldon Adelson, founder of the Las Vegas Sands Corp., was for years a staunch opponent of online gaming in nearly every form, Gutwald said.
But, following Adelson’s death in 2021, “It’s conceivable that something could happen,” Gutwald said. “What makes that hard is that our Legislature meets only once every two years. When they meet, it moves fast, so you really have to have a plan.”
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