Nevada has legal requirements for individuals and businesses that disseminate certain information, particularly in regulated industries like gaming. These laws are in place to ensure transparency, protect consumers, and maintain the integrity of data. This article covers what defines a disseminator under Nevada law, their registration requirements, authorized activities, and the penalties for not following these rules.
Applicable State Statutes
Nevada’s laws for disseminators, especially those handling gaming information, are primarily found in the Nevada Gaming Control Act.1Nevada State Legislature. NRS Chapter 463 – Licensing and Control of Gaming This Act establishes a system for overseeing gaming activities, including how information is shared. The main goals are to maintain the integrity of the gaming industry and protect public interests.
The Nevada Gaming Control Act defines a disseminator in gaming as someone who, for a fee, provides users with receiving equipment on a subscription basis or offers information, statistics, or data about horse racing or other sporting events.2Justia Law. Nevada Revised Statutes § 463.0147 – “Disseminator” Defined (2020) The Nevada Gaming Commission and the Nevada Gaming Control Board are the regulatory bodies responsible for implementing and enforcing these rules.3Justia Law. Nevada Revised Statutes § 463.140 – General Powers and Duties of Board and Commission (2024) The Commission sets regulations, and the Board investigates applicants and enforces compliance.
Scope of Authorized Dissemination
Authorized activities for disseminators in Nevada, particularly in gaming, are well-defined. Disseminators provide specific information, like data on horse racing or sporting events including real-time odds and results, to approved recipients such as licensed sports pools. The specific types of data and how they can be shared are detailed in their authorization.
A disseminator’s scope of distribution is limited by their license. For instance, gaming information disseminators often serve patrons within licensed gaming establishments or other approved locations. The information shared must be accurate and handled carefully to protect the integrity of the events and any related betting. These activities are subject to ongoing oversight to ensure compliance and prevent misuse of sensitive data.
Registration Requirements for Disseminators
To operate legally as a disseminator in Nevada, especially in gaming, formal registration or licensing is required. The Nevada Gaming Commission and the Nevada Gaming Control Board oversee this process for gaming-related information, ensuring applicants meet suitability standards and operate transparently.
The application process includes submitting detailed information for a thorough investigation by the Board.4Nevada Gaming Control Board. Application for Disseminator License This covers identity, background, financial stability, and overall suitability. Applicants must provide extensive personal and financial records, operational details, and prove their suitability.
After the Board’s investigation, the Commission decides on the application. Approval criteria are strict, and applications can be denied for reasons like criminal history or insufficient financial transparency. There are application and investigation fees, which can be substantial.5Nevada Gaming Control Board. Application and Investigative Fee Schedule Licenses are not permanent and require periodic renewal, with disseminators subject to ongoing oversight.
Penalties for Unauthorized Activity
Operating as a disseminator in Nevada without proper authorization, especially in the gaming sector, leads to serious legal consequences. Violations like operating without a license can result in felony charges, imprisonment, and substantial fines.
The Nevada Gaming Commission can impose direct punitive measures for unauthorized dissemination of gaming information. These include significant monetary fines for each violation, applicable to both licensees and non-licensees. The Commission can also issue cease and desist orders to halt unauthorized activities.
Depending on the severity, criminal charges such as gross misdemeanors or felonies, which may lead to imprisonment, can also apply. For example, if dissemination aids cheating, laws prohibiting cheating devices (like Nevada Revised Statutes Section 465.070) can be enforced, carrying penalties of imprisonment and fines.6Justia Law. Nevada Revised Statutes § 465.070 – Fraudulent Acts (2024)
Investigations and Enforcement
The Nevada Gaming Control Board and the Nevada Gaming Commission are responsible for investigating and enforcing laws related to disseminators. The Board investigates potential violations by disseminators and can initiate complaints, which are then presented to the Commission.7Justia Law. Nevada Revised Statutes § 463.310 – Investigations and Initiation of Complaints by Board (2024)
Board agents have the authority to inspect premises and equipment used for gaming or dissemination technology. The Board also investigates suspected criminal violations of gaming laws.8Nevada Gaming Control Board. Investigations Division Both the Board and Commission can issue subpoenas, compel witness attendance, and require sworn testimony.
Enforcement includes a structured disciplinary process. After the Board files a complaint, the Commission holds hearings, reviews evidence, and hears testimony before making a decision. If violations are confirmed, the Commission takes appropriate enforcement actions, ensuring due process throughout the proceedings.
Exemptions for Certain Entities
Nevada’s regulations for disseminators include specific exemptions, recognizing that not all information sharing needs the same level of oversight.
A key exemption is for news reporting. Newspapers, news services, and broadcast stations performing standard news functions are not usually considered disseminators requiring gaming licenses.9Nevada Gaming Control Board. Nevada Gaming Commission Regulation 20 – Disseminators of Information Concerning Racing This is because general news coverage available to the public differs from the specialized data feeds provided by licensed disseminators for gaming purposes.
Other exemptions can apply if an entity’s activities don’t meet the legal definition of a disseminator. For example, selling communication equipment without providing regulated gaming information for a fee to gaming establishments probably doesn’t require a disseminator license. The laws mainly target information that directly affects wagering.