463.650 - License required for manufacture, selling or distribution of gaming device, cashless wagering system, mobile gaming system or interactive gaming system; exceptions; applicability of NRS 463.

463.650  License required for manufacture, selling or distribution of gaming device, cashless wagering system, mobile gaming system or interactive gaming system; exceptions; applicability of NRS 463.482 to 463.645, inclusive; regulations relating to independent contractors.

      1.  Except as otherwise provided in subsections 2 to 5, inclusive, it is unlawful for any person, either as owner, lessee or employee, whether for hire or not, to operate, carry on, conduct or maintain any form of manufacture, selling or distribution of any gaming device, cashless wagering system, mobile gaming system or interactive gaming system for use or play in Nevada or for distribution outside of Nevada without first procuring and maintaining all required federal, state, county and municipal licenses.

      2.  A lessor who specifically acquires equipment for a capital lease is not required to be licensed under this section or NRS 463.660.

      3.  The holder of a state gaming license or the holding company of a corporation, partnership, limited partnership, limited-liability company or other business organization holding a license may, within 2 years after cessation of business or upon specific approval by the Board, dispose of by sale in a manner approved by the Board, any or all of its gaming devices, including slot machines, mobile gaming systems and cashless wagering systems, without a distributor’s license. In cases of bankruptcy of a state gaming licensee or foreclosure of a lien by a bank or other person holding a security interest for which gaming devices are security in whole or in part for the lien, the Board may authorize the disposition of the gaming devices without requiring a distributor’s license.

      4.  The Commission may, by regulation, authorize a person who owns:

      (a) Gaming devices for home use in accordance with NRS 463.160; or

      (b) Antique gaming devices,

Ê to sell such devices without procuring a license therefor to residents of jurisdictions wherein ownership of such devices is legal.

      5.  Upon approval by the Board, a gaming device owned by:

      (a) A law enforcement agency;

      (b) A court of law; or

      (c) A gaming device repair school licensed by the Commission on Postsecondary Education,

Ê may be disposed of by sale, in a manner approved by the Board, without a distributor’s license. An application for approval must be submitted to the Board in the manner prescribed by the Chair.

      6.  Any person who the Commission determines is a suitable person to receive a license under the provisions of this section and NRS 463.660 may be issued a manufacturer’s or distributor’s license. The burden of proving his or her qualification to receive or hold a license under this section and NRS 463.660 is at all times on the applicant or licensee.

      7.  Every person who must be licensed pursuant to this section is subject to the provisions of NRS 463.482 to 463.645, inclusive, unless exempted from those provisions by the Commission.

      8.  The Commission may exempt, for any purpose, a manufacturer, seller or distributor from the provisions of NRS 463.482 to 463.645, inclusive, if the Commission determines that the exemption is consistent with the purposes of this chapter.

      9.  The Commission may provide by regulation for:

      (a) The filing by a manufacturer of reports and information regarding:

             (1) Any independent contractor; and

             (2) The business arrangements between the manufacturer and an independent contractor.

      (b) Registration of independent contractors.

      (c) Procedures pursuant to which an independent contractor may be required to file an application for a finding of suitability.

      (d) Such other regulatory oversight of independent contractors as the Commission determines is necessary and appropriate.

      10.  As used in this section:

      (a) “Antique gaming device” means a gaming device that was manufactured before 1961.

      (b) “Holding company” has the meaning ascribed to it in NRS 463.485.

      (c) “Independent contractor” means, with respect to a manufacturer, any person who:

             (1) Is not an employee of the manufacturer; and

             (2) Pursuant to an agreement with the manufacturer, designs, develops, programs, produces or composes a control program used in the manufacture of a gaming device. As used in this subparagraph, “control program” has the meaning ascribed to it in NRS 463.0155.

      (Added to NRS by 1967, 1596; A 1969, 651; 1977, 1425, 1441, 1445; 1981, 1101; 1983, 1206; 1989, 405, 970; 1993, 314, 829, 831, 2010; 1995, 762; 1997, 3508; 2001, 3091; 2003, 20th Special Session, 14; 2005, 719; 2007, 1119; 2009, 288)