Gaming in Nevada - Research Paper Example

Gaming in Nevada Introduction: The History of gaming in Nevada started well before the formation of the People started coming to this area in search of gold. While they came, they brought their own games of chance with them. Abraham Lincoln the then president of America took a vigilant stand against gambling. He delegated territory governor Mr. James Nye to reprimand vice and take strict legal action against offenders. Early legislations on gambling had stiff penalties. When the state of Nevada was formed in 1864, the first move was to implement legislature that would legalise and regulate gambling. This move however failed and as a compromise penalties for gambling were dramatically reduced. Only mild fines were imposed on operators and the players were let off with the objective of preclusion. In 1909, legislation was passed by the influence of progressive movements that banned all types of gambling in the state. In 1919, the law got relaxed and the state started issuing licenses for card room games like bridge and whist. In 1920’s Reno became the gaming capital of the state. During the time of the great depression, the differences in opinion about gambling were finally settled. The Assembly passed the Bill 98 in 1931 which allowed gambling as an entertainment. This started the era of gaming industry of Nevada as we all see and experience today (History of gaming in Nevada). Role of the Industry: Gaming has become the life blood of Nevada’s economy. The casino industry in Nevada utilizes the services of nearly 300000 workers which represent 27% of Nevada’s work force. The industry is the principal tax payer providing 46.2% of the states general fund revenue. In the financial year 2010, the industry paid nearly $2 billion in taxes to the government and the industry has become the largest donor of capital investment, community development, jobs, taxes and quality living to the people of Nevada. The hotel and casino industries have invested nearly $60 billion in Nevada. Even in times of the latest financial crisis, the state attracted nearly 50 million visitors and its casinos earned $21 billion in revenue to keep the economy going. The casino industry not only provides employment and taxes, but it is also engaged in lots of philanthropic activities. Millions of dollars are spent for charity and public service activities. Majority of the aid goes to the health and education sectors. In a year on an average the industry donates more than $10 million for social work. These funds are directly given to local organizations and the casino industry has given nearly 30000 hours towards community empowerment in the state. The industry has also taken the pain to increase the standard of living of the people who live in Nevada. It has succeeded in doing this so far. Each and every hotel or resort provides a unique combination of quality of life. In the education sector the industry is playing many roles. Right from filling backpacks of children to enrich quality of students in Nevada are good examples. The industry is also engaged in providing high quality health services. This includes offering a full array of preventive health services. At site health screenings which helps employees to identify potential health issues early, workout at fitness centers, avail services of wellness coaches, dental care services, mammogram screenings, biometric screenings and availing flu shots are some of them. Some Educational programs are offered to its employees to improve their own health management procedures, maintain healthy life styles and to follow better healthcare procedures to become good health consumers. Cholesterol education, healthy heart programs, lifestyle management, disease management, flu prevention, retirement planning 10000 steps program etc are some of the highlights of the educational programs provided by the industry. Environmental protection is another area of social performance of the industry. This includes the development of the largest privately funded sustainable development in the world named “City Center”. It has developed the first of its kind silver certified laundry facility which saves 22 million gallons of water every year. Other types of sustainable development projects are also going on. Besides education, health care and sustainability, the industry has also undertaken other employee benefit programs. Home ownership programs for first time home buyers, foreclosure modification programs which help in navigating the home foreclosure process, 24/7 on site child care, English/ Spanish learning classes, job training courses, crisis funds for employees, citizenship assistance programs, tuition assistance programs etc are some of the activities performed by the industry . Sustainable principles practiced by the industry: The hotel-casino industry apart from contributing to the state and undergoing sustainable programs has formulated certain principles aimed to increase the states well being. These principles are: To ensure that Nevada remains a prime tourist target by providing all its guests with perfect service. To provide ample job opportunities to all people of Nevada. To create a stable, reliable and broad based financial infrastructure which would encourage business to relocate and do business in Nevada. To make sure that all citizens of Nevada receive worth K-12 education To build a world class higher education system in the state. To create a sustainable business model, this would preserve and protect the environment and natural resources of the state. To improve the quality of life of every citizen of Nevada. Last but not the least, to generate awareness about problem gambling in the state (The facts about gaming in Nevada). Regulations for gaming industry: For the purpose of controlling and regulating gaming practices, the Nevada gaming control board was established in 1955. The board was formed for centralizing the poorly administered sectors of gaming prior to 1955. Also performing along with the board there is the Nevada gaming commission which is responsible for administering the board’s regulations as well as granting of licenses. The gaming control board is responsible for enforcing the rules and regulations in the state. It is entrusted with collection of game taxes as well as fees. It is also responsible for maintaining public confidence. Issues arising from the casinos are looked by the board immediately. Casino patrons who have complaints can lodge complaints with the board. Management of the tax base of the industry is an important work of the board. The law states that the gaming control board has the right to block questionable ownership, removal of owners, restrict licenses, investigations, etc (Moe). Role of the state in gaming industry: The state of Nevada knows very well the importance of gaming industry in its economy; therefore it has played an active role in promoting the gaming industry. The government has passed appropriate laws to regulate the gaming industry so that it runs without any complaints. Recently a new law was passed which was aimed to generate more investment in the industry. As per the new law, the amount of time for obtaining the license was shortened. The new law states that companies and individuals are no longer required to run a gaming company or to have an agreement for acquiring a casino in the state before they can apply for a gaming license (Sieroty). In 1961, the Nevada state formed the gaming policy committee which is an administrative body consisting of government officials, public and industry representatives etc. This committee is responsible for recommending suitable gaming policies. It has also been made mandatory to take part in the employee registration program. Unless and until a person is registered, he cannot be an employee in the gaming industry (Gaming in Nevada). Now Nevada has become one of the fastest growing states in the entire US. The booming gaming industry in Nevada as well as friendly gaming policies by the state has made it to reach this position. One of the brighter sides of the industry is that it has provided maximum employment to people. Casino leaders still point out that there is a shortage of men for work in casinos in the region. The corporate gaming act in 1969 was a stepping stone for growth when it allowed banking sector to take part in the gambling industry. The involvement of large banks and other public corporations in the gambling has made a makeover of image for the industry. The industry had its darker sides also. Influence of the underworld has prompted action against it many times. During the 1960’s FBI agents’ raided casinos to pick up the guilty engaged in criminal activities. A number of cases of criminal involvement were revealed by the federal government during the periods from 1976 to 1981.Eventhough these have tarnished the image of the gaming industry; of late it has regained some thing due to stricter regulations in operations (Elliot & Rowley, p.325-338). The state of Nevada issues around 500 casino licenses and controls nearly 1800 slot licenses. There are nearly 1360000 slot machines and 5300 table games that generate nearly $300 million for the state. No other state in the American continent has such big revenues from gaming than Nevada. The state makes sure that revenues from gaming do not come from criminal enterprise but only from legitimate sources. To protect the states revenue and consumers, the state makes sure that the casino operators are skilled enough to deal with cheaters and tax evaders. Taxes from gaming are collected monthly on a sliding scale. It goes from 3% to 6.25%. There is also 10% tax on admissions, merchandise, refreshments and services provided by gaming establishments. Then there is quarterly and annual fees according to the numbers of games offered (Regulation of Gambling, 2012). Conclusion: Not everybody in the state of Nevada favored in the legislation of the gaming industry during the earlier times. Many people of the state believed that gaming was morally wrong and it encouraged crime, prostitution and political corruption. Many were of the opinion that the state should not rely heavily on its economic benefits. However things did not go their way because business leaders and majority of the politicians thought that gambling would bring them unrestricted fortune. Therefore Nevada was converted into a modern gambling center as we see today. Works Cited: Elliott, Russell R. & Rowley, William D. History of Nevada Nebraska: University of Nebraska Press. 1987. “Gaming in Nevada” January 2012 November 29, 2012 “History of gaming in Nevada.” 2011. November 29, 2012. Moe.Al. “Nevada Gaming Control Board”. 2012. November 29, 2012 “Regulation of Gambling” 2012 November 29, 2012 Sieroty,Chris. “New state law may help Nevadas gaming industry”. July 8, 2011. < http://www.lvrj.com/business/new-state-law-may-help-nevada-s-gaming-industry-125202253.html> November 29, 2012 “The facts about gaming in Nevada”. February. 2011. November 29, 2012 Read More