Nevada lawmakers are considering a bill that would impose tougher penalties on illegal online gambling operators, including offshore sites and sweepstakes casinos. Senate Bill 256 (SB 256), introduced on February 27, aims to strengthen enforcement measures and expand the state’s ability to prosecute illegal operators, even if they are based outside Nevada.
The proposed legislation was discussed in a public hearing by the Senate Judiciary Committee on Wednesday, where supporters emphasized its potential to curb illegal gambling activity and protect Nevada’s regulated gaming industry.
Janice Wong, an intern for the bill’s sponsor, Sen. Rochelle Nguyen, outlined three key provisions of SB 256 during the hearing:
• Forfeiture of illegal profits – Any operator found guilty of unlawful gaming activity would be required to disgorge all earnings, with the funds directed to the state’s general fund.
• Stronger criminal penalties – The bill proposes upgrading some offenses from misdemeanors to felonies, increasing the legal consequences for violators.
• Expanded liability beyond state borders – The legislation would allow Nevada to prosecute illegal gaming operators even if they are based outside the state, as long as they accept bets from Nevada residents.
“The goal is to directly target illegal online gaming operators by implementing stronger penalties and financial consequences,” Wong said.
The rise of illegal gambling has become a growing concern, particularly as offshore operators exploit the normalization of legal betting in the U.S. Since the 2018 lift of the federal sports betting ban, states have focused on licensing and taxation, but enforcement against unlicensed operators has lagged behind.
SB 256 seeks to go beyond traditional cease-and-desist letters, which have been effective in some cases. For example, Michigan and Colorado pressured Bovada to block residents from accessing its site, but many unlicensed operators continue to ignore enforcement efforts.
Nevada’s regulated gambling industry has rallied behind the bill, with support from the Association of Gaming Equipment Makers, the Vegas Chamber, the Nevada Resort Association, and the Nevada Gaming Control Board.
Proponents argue that stronger enforcement is necessary to protect Nevada residents, legal operators, and the state’s tax revenues. If passed, SB 256 could serve as a model for other states looking to combat illegal online gambling more aggressively.
Original article: https://www.yogonet.com/international/news/2025/03/17/98457-nevada-bill-seeks-to-strengthen-penalties-against-sweepstakes-illegal-online-gambling
