The state of Nevada has just approved a new bill that seeks to prohibit unlawful gambling enterprises from operating within the state. Senate Bill 256, authored by Senator Rochelle Nguyen, passed the Assembly with a vote of 42 – 0, just several weeks after getting a unanimous vote in the Senate.

In a move to further clamp down on unauthorized gambling, the Nevada legislature has passed a bill that would give the state expanded powers to target and prosecute unlicensed gambling operators. Senate Bill 256, introduced by Senator Rochelle Nguyen, passed unanimously in the Assembly on Thursday with a 42 - 0 vote. The legislation had previously cleared the Senate without opposition, signaling strong bipartisan support for stricter enforcement measures.

One more step to becoming law

Although SB 256 has cleared both chambers, a minor amendment added in the Assembly means the bill must return to the Senate for concurrence before it can be sent to Governor Joe Lombardo for signature. The sole change - adding Assemblymember Brittney Miller as a joint sponsor - poses no substantive alteration to the bill’s content, and reapproval is expected to be swift.

SB 256 marks a significant evolution in Nevada’s regulatory framework for gambling. The bill is designed to strengthen the state’s ability to police both physical and online gambling operations that operate without proper licensing. Importantly, it grants Nevada the authority to pursue unlicensed operators located outside the state - if they accept bets from Nevada residents.

Under the bill, any financial gains derived from illegal gambling activities - including profits and gross receipts - must be surrendered to the state. These funds would be deposited into the General Fund, creating a financial deterrent for unlawful operators while bolstering public resources.

Operators who exploit Nevada residents through illegal platforms will now face real consequences, stated a legislative source. This is about fairness, accountability, and preserving the integrity of our gaming industry, they continued.

Tougher penalties for facilitators

In addition to targeting gambling operators directly, SB 256 increases the penalties for individuals and entities found to be facilitating unauthorized gambling. Some offenses under the new law could be prosecuted as felonies, escalating the legal risks for those involved in illegal gaming ventures.

These provisions reflect growing concerns over the proliferation of unlicensed platforms, particularly in the online space, where enforcement has historically lagged behind technological innovation.

Addressing the online gray area

While SB 256 does not specifically mention online sweepstakes casinos - a popular, often legally ambiguous form of gambling - it references existing state law defining gambling broadly. That definition includes any game played for something of value using dice, cards, or electronic devices.

This opens the door to possible action against sweepstakes platforms, depending on how regulators interpret the term “representative of value.” Many such platforms use dual-currency systems designed to skirt gambling laws, but SB 256 may close those loopholes if enforcement officials apply a wide lens.

“With the rise of online gaming apps, we’ve seen an increasing number of unlicensed platforms operating in the shadows,” said Janice Wong, a legislative intern, during a Senate hearing in March. “This bill sends a clear message: If you operate illegally, you will be held accountable.”

Widespread support from the industry and regulators

SB 256 has drawn endorsements from key stakeholders, including the Vegas Chamber of Commerce, the Nevada Gaming Control Board, the Association of Gaming Equipment Manufacturers, and the Nevada Resort Association. Advocates argue the bill is essential to maintaining the integrity of Nevada’s gaming sector, a cornerstone of the state’s economy.

Supporters also highlight the need to protect consumers and ensure the state does not lose online gaming traffic to unregulated alternatives, which often lack safeguards against fraud or addiction. As Nevada awaits final Senate approval and the governor’s signature, industry observers say the bill could become a model for other states grappling with similar issues.