Nevada Issues First Online Gaming Licenses

228765_8141Earlier this week, the State of Nevada took an important step toward legalized Internet gambling when the Gaming Control Board’s three member panel issued a unanimous recommendation for Bally Technologies Inc. to receive the first Nevada online gaming license, as a manufacturer of online gaming systems. A mere two days later, International Game Technology (“IGT”) also received the go-ahead from the Board.

Each of the Board’s recommendation must still be reviewed by the Nevada Gaming Commission, which will occur on June 21, after which a final decision will be made. In connection with that review, both Bally’s and IGT’s software platforms will be tested for suitability – whether the software platforms can block players not located in Nevada, block players that are under 21 years of age and whether they comply with the other requirements set forth in the applicable Nevada statute.

The Golden Nugget is currently using the Bally software platform to offer free versions of games to users, but both Bally and IGT anticipate partnering with dozens of casinos as a software provider to facilitate the online gaming ventures of those brick and mortar casinos. The software platforms will enable table games, slot machines, poker, bingo and sports betting, with the particular menu of games to be decided by the applicable casino on a case by case basis.

A significant portion of Bally’s software platform was acquired from French-based software provider, Chiligaming. IGT’s software platform was enhanced by prior purchases of WagerWorks and Entraction, two foreign-based entities.

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David Klein

David Klein is one of the most recognized attorneys in the technology, Internet marketing, sweepstakes, and telecommunications fields. Skilled at counseling clients on a broad range of technology-related matters, David Klein has substantial experience in negotiating and drafting complex licensing, marketing and Internet agreements.

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