Nevada Gaming Board Considers Oversight for Sports Data Providers

December 16, 2024 Marija D

The Nevada Gaming Control Board is deliberating whether to introduce licensing regulations for sports-data service providers, an increasingly prominent part of the sports wagering landscape. The discussion reflects the nationwide growth of legalized sports betting and the industry’s expanding complexity.

During a workshop held Thursday, Board Chairman Kirk Hendrick questioned the adequacy of current oversight mechanisms, saying, “Do we have enough visibility and knowledge of everyone involved in the sports wagering business? Are we making sure that those who are involved in setting the lines and providing the data are captured within our regulatory process?”

Adapting to Industry Evolution

Jim Barbee, head of the Board’s technology division, explained how the rise of sports wagering has fundamentally changed the flow of information and data in the industry. When the regulatory framework was first introduced, fewer players operated in the sector. At that time, data moved linearly from event monitoring services to operators for generating lines and odds.

Today, the process is far more layered, with entities, tentatively referred to as “sports-data service providers,” acting as intermediaries. According to Barbee, these third-party services often by traditional information monitors by gathering and disseminating data directly to operators.

“There’s a little risk of having these third parties establish event information, including lines and odds, that ultimately end up in front of patrons where they can place wagers,” Barbee noted.

Barbee clarified that the proposal targets third-party firms that process and transform data into actionable lines for betting, distinguishing them from entities solely providing raw statistics.

Exploring Licensing as a Solution

Under the suggested changes, sports-data providers could be required to undergo a registration process, which would bring them under the state’s regulatory umbrella. This approach mirrors existing models in states like New Jersey, where ancillary casino service providers are ed to maintain transparency and ability.

Hendrick emphasized that regulation would allow the Board to better oversee operations and respond when issues arise. He stated, “It’s who takes that information and turns it into a line. If that’s a licensed information service, we know who they are. If it’s somebody outside of that, that’s the group we’re trying to figure out who they are and have a connection with.”

Barbee agreed, pointing out that oversight ensures the Board can conduct investigations when errors occur. Presently, investigations often stop at licensed operators or information services without reaching third-party data providers. He added that Nevada’s gaming reputation could benefit from having greater transparency and ability in this evolving sector.

Some Board , like George Assad, questioned whether new regulations are necessary. Assad argued that existing mechanisms already ensure ability among licensed operators. “We have a lot of regulations already. Do we really need another regulation when we can go after, for example, MGM or Station Casinos or Wynn?” he said, highlighting that licensed entities should remain the focal point of compliance efforts.

Hendrick countered that a lack of oversight leaves unlicensed third parties beyond the Board’s reach. If issues arise, they currently have no clear way to engage with these companies, even for basic inquiries.

Barbee estimated that fewer than 20 entities would fall under the proposed regulation, minimizing istrative burden on the Board. However, Hendrick acknowledged that the existing regulatory workload and staffing limitations must be considered when evaluating such measures.

While no immediate decisions have been made, the Board plans to weigh the implications further. Any rule changes, if pursued, would likely not come into effect until 2025.

Source:

”Nevada regulators weigh licensing of sports-data providers”, cdcgaming.com, December 14, 2024.