Nevada is set to enact a law that will enhance its authority to fight against unlawful gambling activities, both on-site and online. 

Senate Bill (SB) 256, presented by State Sen. Rochelle Nguyen (D-Las Vegas) in February, received approval from the Nevada Assembly with a 42-0 vote on Thursday, following its unanimous passage in the State Senate with a 20-0 vote six weeks earlier. 

After the bill is enacted, it will enhance Nevada’s authority to pursue legal action against operators of unlicensed in-person gambling establishments and online casinos, while greatly increasing the penalties beyond the current $50K fine faced by illegal operators. 

SB 256’s provisions include:

- allowing Nevada to prosecute unlicensed operators even if they are out of state, as long as they accept bets from people in Nevada

- forcing illegal gamblers to forfeit all earnings back to the state, which would redirect it to its general fund

- upgrading some gambling offenses from misdemeanors to felonies carrying up to 10 years in prison

- significantly stiffening penalties for running illegal offshore gambling sites, including (though not explicitly stated) so-called “sweepstakes casinos”

“This is a crucial issue that affects not only the credibility of our gaming regulations but also consumer protections and state revenues,” said Nevada Janice Wong, the legislative intern for the bill’s author, Sen. Rochelle Nguyen (D-Las Vegas), during a hearing on the bill in March.

“With the rise of online gaming apps, we’ve seen an increasing number of unlicensed platforms operating in the shadows accepting illegal wagers, engaging in fraudulent practices, and profiting outside the bounds of our regulatory framework,” Wong said. “These bad actors not only undermine our legal gaming industry but also put our consumers at risk.”

According to the American Gaming Association, illegal online casinos took in over $400 billion in bets in 2024, resulting in over $17 billion in lost revenue for licensed US gaming operators. 

Another Little Obstacle 

Since the Nevada Assembly modified the bill prior to its passage, SB 256 must return to the State Senate for approval before being forwarded to Nevada Gov. Joe Lombardo to be enacted into law. 

The Assembly’s sole amendment was to include Assemblymember Brittney Miller as the bill’s co-sponsor, a change expected to encounter no opposition in the Senate. 

The legislation is backed by the Nevada Gaming Control Board, the Association of Gaming Equipment Manufacturers, and the Nevada Resort Association.