Nevada Introducing Collective Wagering

Planning to expand its sports betting offering through collective wagering, Nevada has proposed a new bill SB346, sponsored by Republican senator Greg Brower. The bill, which had its first hearing on Monday in the state Senate, is seeking to introduce new betting opportunities and see private investment groups placing sports wagers on behalf of investors generating substantial revenues in the future. Under the existing law, only individuals can place wagers at Nevada sports books, and senator Brower's idea is to "... allow a group of bettors to bet as an entity.” The bill would add “entities” to be formed and authorised to act as a type of hedge fund and wager large amounts on sports. In turn, they could seek out investors to put up money and “leave it up to the expert to make the bet,” as Brower said. Supporting the measure Randy Sayre, a former member of the Nevada Gaming Control Board, describes it as an untapped market with minimised money laundering risks because current technology allows regulators to closely monitor wagering organisations. Other supporters thought the Brower bill would also help the state capture some of the estimated $380 billion bet illegally on sports each year in the U.S. while AG Burnett, current chairman of the state's Gaming Control Board, expressed his concerns on regulating the collective concept. Lee Amaitis, a senior executive with sports betting operator Cantor Gaming, told the committee that Nevada revenues could almost treble to $10 billion within five years if 'entity wagers' are allowed, and tax revenue to the state would more than double to roughly $25 million over that time. When approved in principle by the Legislature, the changes would go to Nevada gambling regulators to frame the necessary standards and regulations, including requirements that those involved would have to have a presence in the state.