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Nevada Senator Proposes an eSports Regulation Bill
By Jeff Osienya Mar 23, 2021 LegalityNevada is poised to become the first US state to regulate eSports events after a state legislator tabled a bill that proposes the formation of the Nevada eSports Commission, a body that will have oversight over any event with prizes worth more than $1000.Republican Senator Ben Kieckhefer, Nevada’s representative of Carson City and parts of southern Washoe County is looking to introduce the first eSports state supervisory body in the USA. Sen. Kieckhefer’s proposal has been tabled under Senate Bill 165 which outlines the plans for the creation of the Nevada eSports Commission to be steered by an executive director who will then be flanked by three members, all appointed by the state governor. The eSports ombudsman will fall under the state Department of Business and Industry.
Per SB 165, the hosts and participants of any eSports event that has a prize crossing the thousand-dollar mark will be required to register with the Nevada eSports Commission and provide any necessary details about the event. Part of the requirements of holding such an event will also include paying a fee as dictated by the regulator and agreeing to abide by the tournament rules as defined by the Commission as well. Should the bill be approved, it will come into effect on 1st January 2022.
Baby Steps Towards Nationwide Regulation
The primary aim of SB 165 is to regulate the flourishing business of video gaming tournaments similar to the way MMA and boxing events are regulated by the Nevada Athletic Commission. Through such standardized oversight, the legislator is hoping to make Nevada a more attractive destination for holding larger events and facilitate the growth of the eSports industry at large. Of course, the move will also mean that the Silver State will have another moneymaker added to its long list of gaming-related revenue streams that also boost the state’s tourism sector.
A hearing of SB 165 by the Nevada Senate Judiciary Committee took place last week on Wednesday, the 17th of March, where the matter was thoroughly reviewed. During that hearing, Sen. Kieckhefer proposed a new bill amendment that will set the scene for the creation of a ‘technical advisory committee’. The said technical team shall consist of experts tasked with assisting in the drafting of regulations that adequately address the needs of the eSports industry.
The bill’s sponsor further added that the technical advisory team should also comprise out-of-state experts to ensure ample representation of all the interdisciplinary areas that are needed to make eSports regulation a success. Ultimately, the senator's vision goes beyond state lines, looking to encourage the establishment of an industry watchdog for competitive video gaming on a national scale as the sector continues to get bigger month after month.
Second Time Might Be the Charm
It’s worth noting that Sen. Kieckhefer after all isn’t the first person in the Silver State to visualize the future and propose the regulation of the eSports industry. The idea was first floated to the state government a couple of years ago by A.G. Burnett, the former chairperson of the Nevada Gaming Control Board.
At that time, however, the proposal failed to gain traction as the eSports industry wasn’t as big as it is now. Moreover, given how hard the Silver State’s tourism sector has been hit by the pandemic, it only makes sense for legislators to explore the idea as part of the plan to make Nevada more attractive to visitors.
A.G. Burnett is currently a partner of McDonald Carano, a business law firm based in Nevada, where Sen. Kieckhefer also serves as the director of client relations. Burnett reexplored the eSports regulation idea with Sen. Kieckhefer and this time around it appears that the unique circumstances the state is facing along with the huge growth potential that the eSport industry has, will be enough to take it to the finish line.
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