Nevada Gears Up to Crack Down on Illegal Gambling With Tough New Law

Lawmakers Push Forward to Protect Consumers and Legitimize Gaming Industry

Nevada is stepping up its fight against illegal gambling with a powerful new law that significantly raises the stakes for unlicensed operators. The proposed legislation, known as Senate Bill 256 (SB 256), aims to protect consumers, secure state revenue, and reinforce the integrity of Nevada’s gaming industry.

What the New Bill Means for Illegal Gambling Operators

SB 256, introduced earlier this year, has already passed both chambers of the Nevada Legislature with unanimous support—first the Senate with a 20-0 vote and then the Assembly with a 42-0 vote. The bill is now just one step away from becoming law, awaiting final concurrence in the Senate and the governor's signature.

Once enacted, the bill will dramatically strengthen the state’s legal arsenal in combating unauthorized gambling activities. Here’s what the new legislation will enforce:

Jurisdiction Beyond State Borders: Nevada will be able to prosecute out-of-state gambling operators if they accept bets from Nevada residents, extending the state’s legal reach.

Forfeiture of Illegal Winnings: All earnings from unauthorized gambling will be seized and redirected to the state’s general fund.

Tougher Criminal Charges: Certain offenses related to illegal gambling will be elevated from misdemeanors to felonies, with penalties of up to 10 years in prison.

Increased Focus on Online and Offshore Gambling: The law will impose stricter penalties on those running offshore websites that accept illegal wagers, including "sweepstakes casinos" that currently operate in legal gray areas.

The Driving Forces Behind the Bill

Legislators backing the bill stress its importance for safeguarding Nevada’s gaming infrastructure and economy. During a legislative hearing, advocates highlighted the dangers posed by unregulated gambling platforms.

“With the growth of online gaming, more unlicensed operators are skirting state laws and putting consumers at risk,” said a legislative representative involved in drafting the bill. “These rogue platforms often engage in deceptive practices, undermine the integrity of legal casinos, and deprive the state of significant tax revenue.”

According to industry estimates, illegal online gambling accounted for over $400 billion in wagers in 2024, leading to an estimated $17 billion in losses for licensed gaming companies across the U.S. These staggering figures emphasize the urgency for a robust legal framework to close loopholes and penalize offenders.

Widespread Support from Industry Leaders

The bill has garnered broad support from key stakeholders in Nevada’s gaming ecosystem, including:

The Nevada Gaming Control Board

The Nevada Resort Association

The Association of Gaming Equipment Manufacturers

These organizations see SB 256 as a necessary step to maintain Nevada’s reputation as a global leader in regulated gambling.

A Minor Amendment Before Final Passage

The only hurdle left is a procedural one: the bill must return to the State Senate for a final concurrence vote due to a minor amendment made in the Assembly. This amendment simply added Assemblymember Brittney Miller as a co-sponsor and is expected to pass without delay.

What Comes Next?

Once the final procedural vote is completed, the bill will head to the governor’s desk for signing. If signed into law, Nevada will soon have one of the strongest anti-illegal gambling statutes in the country, targeting both in-person and online violators.

Nevada’s move to bolster its legal framework reflects growing national concerns over illegal gambling and its impact on both consumers and legitimate businesses. With the passage of SB 256, the state is signaling its commitment to clean up the market, protect players, and ensure that all gambling activities occur within a fair and regulated system.

This legislative action could set a precedent for other states grappling with similar issues as the digital gaming world continues to evolve.