Nevada About to Stiffen Penalties for Illegal Gambling Operators

Nevada is about to pass a law giving it greater power to combat illegal gambling operations, both land-based and online.

Senate Bill (SB) 256, introduced by State Sen. Rochelle Nguyen (D-Las Vegas) in February, passed the Nevada Assembly by a 42-0 vote on Thursday, six weeks after passing the State Senate 20-0.

Once signed into law, the bill will strengthen the Silver State’s powers to prosecute operators of unauthorized in-person gambling facilities and online casinos, and significantly stiffen the penalties beyond the $50K fine that illegal operators currently face.

SB 256’s provisions include:

1. allowing Nevada to prosecute unlicensed operators even if they are out of state, as long as they accept bets from people in Nevada
2. forcing illegal gamblers to forfeit all earnings back to the state, which would redirect it to its general fund
3. upgrading some gambling offenses from misdemeanors to felonies carrying up to 10 years in prison
4. significantly stiffening penalties for running illegal offshore gambling sites, including (though not explicitly stated) so-called “sweepstakes casinos”

“This is a crucial issue that affects not only the credibility of our gaming regulations but also consumer protections and state revenues,” said Nevada Janice Wong, the legislative intern for the bill’s author, Sen. Rochelle Nguyen (D-Las Vegas), during a hearing on the bill in March.

“With the rise of online gaming apps, we’ve seen an increasing number of unlicensed platforms operating in the shadows accepting illegal wagers, engaging in fraudulent practices, and profiting outside the bounds of our regulatory framework,” Wong said. “These bad actors not only undermine our legal gaming industry but also put our consumers at risk.”

Illegal online casinos accepted more than $400 billion in wagers in 2024, according to the American Gaming Association, which cost licensed US gaming operators more than $17 billion in lost revenue.

One More Teeny Hurdle

Because the Nevada Assembly amended the bill before passing it, SB 256 must now go back to the State Senate for concurrence before being sent to Nevada Gov. Joe Lombardo’s desk to be signed into law.

However, the Assembly’s only amendment was to add Assemblymember Brittney Miller’s name as the bill’s co-sponsor, a move unlikely to face any resistance in the Senate.

The bill has strong support from the Nevada Gaming Control Board, the Association of Gaming Equipment Manufacturers and the Nevada Resort Association.