The appropriate role of regulation: Publicly traded corporations operating in the Nevada gaming industry

The casino gaming industry is a critical component of the economy of the state of Nevada. In 1969, Nevada's Legislature passed the Corporate Gaming Act. Prior to the passage of this law, publicly traded corporations were essentially prohibited from participating in the state's gaming industry due to strict licensing requirements. This thesis examines the history of corporate gaming in Nevada, outlines the regulatory structure of corporate gaming in relation to the "public interest" and "capture" theories of regulation, and recommends which aspects of regulation be retained and which aspects of regulation be discontinued. This thesis uses the casino gaming regulatory model of the state of New Jersey for comparison.

During the early 1990's, the jurisdictional spread of casino gaming in the U.S. expanded from Nevada and Atlantic City to gaming on Native American lands, the Mississippi River and other inland waterways, and in several exclusive contract locations. In many cases, publicly traded corporations have provided the investment capital in these emerging markets. The strict licensing standards upon corporate gaming licensees proposes special challenges to regulatory bodies. This thesis highlights the important aspects of licensing publicly traded corporations.