Nevada gaming manufacturers will have an easier time in 2025 submitting proposals to state regulators for new games without owning the intellectual property rights. The change is expected to encourage even more themes for slot machines.
The amendment to an existing Nevada Gaming Commission regulation would codify a practice already in place, but also encourage more manufacturers to bring their ideas forward prior to spending millions of dollars to acquire the rights. It was approved at the Dec. 19 meeting of the Nevada Gaming Commission.
“This language might encourage those who haven’t acquired the IP,” said Jim Barbee, chief of the Technology Division of the Gaming Control Board. “This will make it more clear that they can bring their ideas in front of the Board, while they’re exploring the acquisition of the IP and find out if this is something I can even get on the floor. I look at it as a potential boon for the industry. Perhaps in the future, we’ll see more IP-related game themes, because the industry might not be inhibited by the current language of the law.”
The new regulation allows entities who have a “good-faith intention” of acquiring the rights to a theme to seek a determination from the chair of the Gaming Control Board as to whether that theme is prohibited because it’s too violent, for example. Currently, that ability is limited to those who already possess such rights.
“This language aligns the regulation with our current practice,” Barbee said. “We’ve been allowing those entities to come forward who want to acquire the IP.”
Barbee said it’s a traditionally behind-the-scenes process, but can be public if the company doesn’t like the administrative decision denying a theme that doesn’t fall in line with public policy. That determination can be appealed to the Board and Commission.
Gaming Control Board Chair Kirk Hendrick cited the NFL as an example. Aristocrat has an NFL-themed slot machine.
“If somebody thought they could get those rights, they would make an application before they spent the time and money to obtain them,” Hendrick said. “All this is trying to make reality the way the process works with the black-letter law.”
Commission Chair Jennifer Togliatti questioned whether someone can game the system.
Barbee said the submission for the review includes a lot of background information and potential game graphics, so if you’re “going to create a slot machine over the NFL, we want to see what that actually looks like when presented to the public.”
Barbee gave an example of a manufacturer that wanted to acquire the rights to the latest “Walking Dead.” It was not only “quite cumbersome,” but the company wanted to run the potentially violent game content by regulators first.
All of that has to occur within 30 to 45 days in order for regulators to make a decision, Barbee said. He and the chair evaluate the theme and good-faith effort companies are making to acquire rights.
Commissioner Brian Krolicki asked how they determine if it’s a good-faith effort.
“You’re talking about very sophisticated manufacturers,” Hendrick said. “They’re putting their reputation on the line. It’s been this way forever. A lot of the manufacturers don’t have the IP, but they believe they can obtain it.”
The attorney general’s office said the good-faith language was added to prevent companies from making requests in which they had no ability to obtain the rights and “see what sticks to the wall and pursue it.” This was a way to ensure companies are serious and save the Board from screening hundreds of requests unnecessarily.
The regulation change was approved unanimously.
