There are a few red flags surrounding how the Nevada Gaming Control Board (NGCB) handles confidentiality. People are worried that this might affect the transparency and answerability of the state’s very profitable casino industry. 

Confidentiality Laws Hinder Public Scrutiny of Nevada’s Casinos

Licensing and regulating casinos in Nevada is the duty of the NGCB. It works under laws that make all inquiry files confidential. Critics argue that this provision in the Nevada Revised Statutes does not promote openness within an industry where billions are made.

The Enforcement Division together with the Investigations Division at NGCB perform critical activities like background checks on those seeking licenses as well as looking into crimes committed within or against any gaming establishment licensed by them. Unfortunately, these processes remain undisclosed owing to NRS 463.120 which states that anything connected with gaming inquiries should be kept secret, reported The Las Vegas Review-Journal.

David Cuillier, director of the Brechner Freedom of Information Project, has pointed out that confidentiality laws are problematic. According to Cuillier, such exceptions to open records laws – often aimed at shielding corporate secrets – diminish accountability and thwart public scrutiny. These exceptions, he said, have gradually chipped away at open record laws since the 1970s, making it much harder to get information.

The “confidentiality clause” has been a major point of contention in many high-profile cases. One of them was in regard to Scott Sibella who used to work as an executive with MGM Grand and Resorts World. During the Sibella investigation, when The Las Vegas Review-Journal requested public records concerning the case, the NGCB declined.

One of the things that has been pointed out as frustrating is the lack of openness. For example, Robert “RJ” Cipriani says he informed state agents years ago of unlawful gambling operations in certain casinos but they did nothing about it. 

Equally important, media coverage has been stifled as well in cases such as the one against Steve Wynn for sexual harassment and the unsolved murder of Benjamin “Bugsy” Siegel.

Michael Green who works as an associate history professor at UNLV explained why records have been kept secret from public knowledge until now. When the legislature established the Board back in the 1950s its main purpose was fighting organized crime within gambling houses. Hence these rules were put into place similar to those valid for police investigations requiring levels of proof while maintaining confidentiality too.

However, Cuillier urges for more transparency as he believes that if people do not have access to what they need from government agencies – especially regarding casinos which generate billions every year – then suspicion will start creeping back into everyone’s minds concerning the integrity of the sector.

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Since the US Supreme Court ruled against PASPA back in 2018, sports betting has been spreading to more US states. With PASPA out of the way, the legalization and regulation of the activity were put in the hands of lawmakers in each state, which resulted in a statewide expansion of the activity.

By now, sports betting is available in some form in more than thirty states, while some have legalized it but are yet to launch. Besides a fresh stream of tax revenue, legal sports betting helps reduce the share of the black market which brings benefits for the consumers. At the same time, legalizing the activity helped create sponsorship opportunities with colleges.

Late last month, the University of Maryland’s Shirley Povich Center for Sports Journalism and Howard Center for Investigative Journalism uncovered the results of a four-month investigation that probed sports betting on college campuses. Overall, 145 Division I public universities in states where sports betting is legal were surveyed as a part of the recent research. Surprisingly, only 23% of the universities confirmed they had sports betting policies in place.

Merrill College’s George Solomon chair in sports journalism and director of the Povich Center, Mark Hyman, explained that the study shares an invaluable insight into how universities respond to sports betting. “It also examines the complicated relationships between betting companies and some schools,” he explained. Finally, Hyman thanked the student journalists that participated in the study and helped deliver these unique insights.

Deals between Bookies and Colleges Are Not Transparent

The new investigative study uncovered a worrying trend. According to the research, universities joined forces with private companies which in turn engaged with sportsbooks. This effectively helped “shield” the agreements, which in reality are between the universities and the sports betting companies, from the public. Undoubtedly this is a worrying trend, considering that some sponsorship agreements include in-stadium branding, as well as other options for promotions.

“Anytime that you can’t be transparent about something you’re doing, it probably indicates that there are some issues. These colleges should be very concerned about the impact of gambling addiction among especially underage students.“

Keith Whyte, executive director at the National Council on Problem Gambling

The National Council on Problem Gambling’s executive director, Keith Whyte, commented on the topic in an interview for the Associated Press. He outlined that concerns are raised immediately given that an activity or a process isn’t transparent. Whyte also pointed out that colleges that have sponsorship deals with betting companies should be concerned about gambling addiction among students that are below the legal age for betting.

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