The Nevada Gaming Debt Collection Experience

In the discussion - The Nevada Gaming Debt Collection Experience - by Larry D. Strate, Assistant Professor, College of Business and Economics at the University of Nevada, Las Vegas, Assistant Professor Strate initially outlines the article by saying: “Even though Nevada has had over a century of legalized gaming experience, the evolution of gaming debt collection has been a recent phenomenon. The author traces that history and discusses implications of the current law.” The discussion opens with a comparison between the gaming industries of New Jersey/Atlantic City, and Las Vegas, Nevada. This contrast serves to point out the disparities in debt handling between the two. “There are major differences in the development of legalized gaming for both Nevada and Atlantic City. Nevada has had over a century of legalized gambling; Atlantic City, New Jersey, has completed a decade of its operation,” Strate informs you. “Nevada\u27s gaming industry has been its primary economic base for many years; Atlantic City\u27s entry into gaming served as a possible solution to a social problem. Nevada\u27s processes of legalized gaming, credit play, and the collection of gaming debts were developed over a period of 125 years; Atlantic City\u27s new industry began with gaming, gaming credit, and gaming debt collection simultaneously in 1976 [via the New Jersey Casino Control Act] .” The irony here is that Atlantic City, being the younger venue, had or has a better system for handling debt collection than do the historic and traditional Las Vegas properties. Many of these properties were duplicated in New Jersey, so the dichotomy existed whereby New Jersey casinos could recoup debt while their Nevada counterparts could not. “It would seem logical that a territory which permitted gambling in the early 1800’s would have allowed the Nevada industry to collect its debts as any other legal enterprise. But it did not,” Strate says. Of course, this situation could not be allowed to continue and Strate outlines the evolution. New Jersey tactfully benefitted from Nevada’s experience. “The fundamental change in gaming debt collection came through the legislature as the judicial decisions had declared gaming debts uncollectable by either a patron or a casino,” Strate informs you. “Nevada enacted its gaming debt collection act in 1983, six years after New Jersey,” Strate points out. One of the most noteworthy paragraphs in the entire article is this: “The fundamental change in 1983, and probably the most significant change in the history of gaming in Nevada since the enactment of the Open Gaming Law of 1931, was to allow non-restricted gaming licensees* to recover gaming debts evidenced by a credit instrument. The new law incorporated previously litigated terms with a new one, credit instrument.” The term is legally definable and gives Nevada courts an avenue of due process

Casino Gambling is Hot: Gambling Debt Collection is Hot

Gambling on credit, considered a vice by some, is not judicially collectible based upon the Statute of Anne. This common law statute prevents the collection of gambling losses, unless expected by state statute. This article reviews and updates the findings of an unenforceability of gambling debt study conducted in 1989 just prior to the rapid expansion of gambling in the United States

Advertising Legalized Gambling: A Late Bloomer Under the First Amendment

New federal laws and court cases have put a new perspective on the ability of the industry to advertise as it has never been able to do before. With gaming becoming more prevalent, the acceptability of the legal industry is making promotion easier. The author discusses these new influences

Net Bet Debt

The prospective high returns from gaming operations have introduced the Internet as a new competitor to the hotel and travel industry. With the dawn of the new millennium, am epidemic of gamblers has infected the virtual world and raised leagal problems yet to be solved

Fast-Food Franchises: An Alternative Menu for Hotel/Casinos

In their discussion - Fast-Food Franchises: An Alternative Menu for Hotel/Casinos - by Skip Swerdlow, Assistant Professor of Finance, Larry Strate, Assistant Professor of Business Law, and Francis X. Brown, Assistant Professor of Hotel Administration at the University of Nevada, Las Vegas, their preview reads: Hotel/casino food service operations are adding some non-traditional fare to their daily offerings in the form of fast-food franchises. The authors review aspects of franchising and cite some new Las Vegas food ideas.” The authors offer that the statewide food and beverage figures, according to the Nevada Gaming Abstract of 1985, exceeded $1.24 billion. Most of that figure was generated in traditional coffee shops, gourmet dining rooms, and buffets. With that kind of food and beverage figure solidly on the table, it was inevitable that fast-food franchises would move into casinos to garner a share of the proceeds. In a March 1986 review of franchising, Restaurant Business reported the following statistics: “Over 60 percent of all restaurants are franchisee owned. This relationship is also paralleled in dollar sales, which has exceeded$53 billion.” “Restaurant franchising expansion has grown at an annual rate of 12 percent per year for the past five years.” The beginning of the article is dedicated to describing, in general, the franchise phenomenon; growth has been spectacular the authors inform you. “The franchise concept has provided an easy method of going into business for the entrepreneur with minimal business experience, but a desire to work hard to make a profit,” say professors Swerdlow, Strate, and Brown. Lured by tourist traffic, and the floundering Chapter 11 afflicted, Riviera Hotel and Casino in Las Vegas, Burger King saw an attractive opportunity for an experiment in non-traditional outlet placement, say the authors. Although innately transient, the tourist numbers were way too significant to ignore. That tourist traffic, the authors say, is ‘round-the-clock. Added to that figure is the 2000-3000 average employee count for many of the casinos on the ‘Vegas strip. Not surprisingly, the project began to look very appealing to both Burger King and the Riviera Hotel/Casino, the authors report. In the final analysis, the project did work out well; very well indeed. So it is written, “The successful operation of the Burger King in the Riviera has sparked interest by other existing hotel/casino operations and fast-food restaurant chains. Burger King\u27s operation, like so many other industry leadership decisions, provides impetus for healthy competition in a market that is burgeoning not only because of expansion that recognizes traditional population growth, but because of bold moves that search for customers in non-traditional areas.” The authors provide an Appendix listing Las Vegas hotel/casino properties and the restaurants they contain

Casino Drink Policies: Limiting Third-Party Liability

In their efforts to provide an atmosphere or hospitality to their casino customers, many operators will provide complimentary alcoholic beverage service. This practice is fraught with liability, particularly in venues outside of Nevada. Conscientious operators must take every precaution to mitigate the possibility of lawsuit