2005 Nevada Revised Statutes - Chapter 463B — Supervision of Certain Gaming Establishments

CHAPTER 463B - SUPERVISION OF CERTAINGAMING ESTABLISHMENTS

NRS 463B.010 Definitions.

NRS 463B.020 Commissiondefined.

NRS 463B.040 Supervisordefined.

NRS 463B.050 Statepolicy concerning continued operation of gaming establishment whose license issurrendered, lapsed, suspended or revoked.

NRS 463B.060 Applicabilityof chapter.

NRS 463B.070 Regulations.

NRS 463B.075 Hearingupon suspension of license regarding appointment of supervisor; notice.

NRS 463B.080 Appointmentof supervisor.

NRS 463B.090 Limitationson order of court to stay appointment or enjoin supervisor.

NRS 463B.100 Compensationof supervisor and other persons.

NRS 463B.110 Supervisorsubject to gaming laws and regulations; jurisdiction of court over powers andduties of supervisor; effect of appointment of supervisor on license andoperation.

NRS 463B.120 Powersand duties of supervisor under gaming license issued by municipality.

NRS 463B.130 Vestingof property interests in supervisor; duty to protect property.

NRS 463B.140 Dispositionof certain securities does not affect supervisor.

NRS 463B.150 Dutiesof supervisor.

NRS 463B.160 Powersof supervisor.

NRS 463B.170 Retentionof books, records, evidences of debt and accounts in State.

NRS 463B.180 Ordercompelling delivery of property to supervisor.

NRS 463B.190 Effectof appointment of supervisor upon obligations of establishment.

NRS 463B.200 Distributionto former legal owner; exceptions.

NRS 463B.210 Reportsby supervisor: Filing; inspection.

NRS 463B.220 Sale of gaming establishment by former owner: Conditions; approval of court.

NRS 463B.230 Sale of gaming establishment by supervisor: Time; conditions; approval of court.

NRS 463B.240 Sale of gaming establishment: Notice; transfer of property to buyer; payment of proceedsto former owners.

NRS 463B.250 Objectionto suitability of supervisor; petition for account or review of qualificationsor performance of supervisor; petition for removal of supervisor or terminationof supervision.

NRS 463B.260 Certaincircumstances requiring termination of appointment of supervisor.

NRS 463B.270 Limitationon personal liability of supervisor.

NRS 463B.280 Unlawfulacts; penalty.

_________

NRS 463B.010 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS463B.020 and 463B.040 have themeanings ascribed to them in those sections.

(Added to NRS by 1979, 804)

NRS 463B.020 Commissiondefined. Commission means the Nevada GamingCommission.

(Added to NRS by 1979, 804)

NRS 463B.040 Supervisordefined. Supervisor means the person appointedby a district court as a fiduciary to manage and control a gaming establishmentpursuant to this chapter.

(Added to NRS by 1979, 804)

NRS 463B.050 State policy concerning continued operation of gaming establishmentwhose license is surrendered, lapsed, suspended or revoked. The Legislature hereby finds, and declares it to be thepolicy of this state, that:

1. The stability and continuity of gamingestablishments in this state are essential to the States economy and to thegeneral welfare of its residents.

2. Any closure of a gaming establishment because of asurrender, lapse, revocation or suspension of its license may cause unnecessaryfinancial hardship to its employees, creditors and investors and may have anadverse economic effect on the residents of the community in which it islocated and on the State generally.

3. Public confidence and trust in the ability of theState to control gaming operations must not be sacrificed by any relaxation ofstrict controls in particular circumstances merely to permit gaming operationsto continue.

4. Placing the management and control of a gamingestablishment whose license is surrendered, lapsed, suspended or revoked undera competent supervisory official may ensure the proper regulation of theestablishment while maintaining its value for its creditors and investors,protecting the interests of other persons, avoiding any disruption of theeconomy of the community in which it is located, and promoting the generalwelfare of the State.

(Added to NRS by 1979, 804; A 1981, 1066; 1991, 1012)

NRS 463B.060 Applicabilityof chapter. This chapter applies only to gamingestablishments:

1. Having 16 or more slot machines; or

2. Having any number of slot machines together withany other game or gaming device.

(Added to NRS by 1979, 804)

NRS 463B.070 Regulations.

1. The Commission shall adopt regulations pertainingto the administration of gaming establishments by a supervisor and any othermatters relating to supervisors which are not inconsistent with this chapter.

2. The regulations must be adopted, amended andrepealed in conformance with the requirements of chapter463 of NRS.

(Added to NRS by 1979, 804)

NRS 463B.075 Hearingupon suspension of license regarding appointment of supervisor; notice. The Commission shall hold a hearing within 15 days afterthe suspension of a license pursuant to NRS463.311 regarding the appointment of a supervisor. The Commission shallnotify the licensee of the meeting and afford the licensee the opportunity tobe heard concerning the appointment.

(Added to NRS by 1985, 1726)

NRS 463B.080 Appointmentof supervisor.

1. Except as otherwise provided in subsection 5, ifthe license of any person whose license is essential to the operation of agaming establishment:

(a) Is revoked by the Commission;

(b) Is suspended by the Commission;

(c) Lapses; or

(d) Is surrendered because the gaming establishment orthe ownership thereof has been conveyed or transferred to a secured party whodoes not possess the licenses necessary to operate the establishment,

only theCommission may ex parte petition the district court for the county in which thegaming establishment is located for appointment by the court of a supervisor tomanage the establishment. The petition is discretionary with the Commission andthis chapter does not create any property right or interest in continued gamingat the establishment.

2. The petition must contain the names of two or morepersons who the Commission believes are suitable and qualified to manage agaming establishment and are available for appointment as a supervisor unless,in the opinion of the Commission, only one person is available who is qualifiedto serve, in which case the Commission may name only that person.

3. Upon receipt of such a petition, the court shallappoint as supervisor of the gaming establishment a person who is listed in thepetition. The court shall immediately notify the Commission of the appointment.Upon receipt of notice from the court, the Commission shall immediately notifyall interested licensees.

4. The petition may be presented pursuant to thissection even if time has not expired for a petition for judicial review of thefinal determination of the Commission to revoke or suspend the gaming license.

5. The Commission shall not petition any court for theappointment of a supervisor pursuant to this section if:

(a) The gaming establishment has never been inoperation and opened to the public.

(b) A rehearing has been granted by the Commission tothe licensee on the revocation or suspension of his license and the rehearinghas not been concluded.

(c) The gaming establishment is, or reasonably appearsto be, insolvent.

6. If the Commission does not petition for theappointment of a supervisor, no district court of this state may issue an orderwhich allows gaming to continue at the establishment.

(Added to NRS by 1979, 805; A 1981, 1066; 1987, 189;1991, 1013)

NRS 463B.090 Limitationson order of court to stay appointment or enjoin supervisor. No district court of this state may issue any order:

1. To stay the appointment of a supervisor appointedpursuant to this chapter, whether or not a petition has been filed for judicialreview of the Commissions determination to revoke or suspend the licenserequired for operation of the gaming establishment.

2. To enjoin a supervisor from exercising his dutiesand powers pursuant to this chapter.

(Added to NRS by 1979, 805)

NRS 463B.100 Compensationof supervisor and other persons. The courtwhich appoints the supervisor shall allow reasonable compensation, out of therevenue of the gaming establishment, for the services, costs and expenses ofthe supervisor and for any other persons whom the supervisor may engage to aidhim in his duties.

(Added to NRS by 1979, 806)

NRS 463B.110 Supervisorsubject to gaming laws and regulations; jurisdiction of court over powers andduties of supervisor; effect of appointment of supervisor on license andoperation.

1. A supervisor is subject to the provisions of chapter 463 of NRS and any regulations adoptedpursuant thereto as if he were personally licensed to operate the gamingestablishment.

2. The court which appointed the supervisor hasjurisdiction over all powers and duties of the supervisor in any proceedingrelating to the exercise of those powers and duties, and may issue any order ordecree in the proceeding which it deems necessary.

3. After the court appoints a supervisor the gaminglicense of the establishment shall be deemed transferred and the previouslylicensed operation shall be deemed a continuing operation.

(Added to NRS by 1979, 805; A 1991, 1014)

NRS 463B.120 Powersand duties of supervisor under gaming license issued by municipality. A supervisor shall be deemed to be a licensee of thegaming establishment under any license issued to operate the gaming establishmentby a county, city or town, and may perform all acts that he is required orpermitted to perform without approval or other action of the county, city ortown.

(Added to NRS by 1979, 805)

NRS 463B.130 Vestingof property interests in supervisor; duty to protect property.

1. Upon the appointment of a supervisor, the right,title and interest of all persons in the gaming establishment is extinguishedand automatically vests in the supervisor, subject to any liens, claims andencumbrances thereon.

2. The supervisor shall protect the money and propertyso acquired by managing it on a prudent businesslike basis.

(Added to NRS by 1979, 806)

NRS 463B.140 Dispositionof certain securities does not affect supervisor. Exceptas provided in NRS 463B.220, 463B.230 and 463B.240, any sale, assignment, transfer,pledge or other disposition of any securities issued by a former or suspendedlicensee while a supervisor is appointed does not divest or otherwise affectthe powers of the supervisor.

(Added to NRS by 1979, 806)

NRS 463B.150 Dutiesof supervisor. The supervisor shall:

1. Take immediately into his possession all propertyof the gaming establishment, including its money, accounts, books, records andevidences of debts owed to the establishment.

2. Continue the business of the gaming establishment.

(Added to NRS by 1979, 806)

NRS 463B.160 Powersof supervisor. The supervisor may:

1. Hire, discipline and dismiss employees of thegaming establishment, and fix the compensation of its employees.

2. Engage independent legal counsel and accountants.

3. Settle or compromise with any debtor or creditor ofthe gaming establishment.

4. Prosecute actions on behalf of or defend actionsagainst the gaming establishment.

5. Enter into any contract or borrow money on behalfof the gaming establishment and pledge, mortgage or otherwise encumber itsproperty as security for the repayment of any loan, except that the power toborrow money or encumber property is limited by any provision of an existingdocument of credit.

6. Grant or renew leases of the property of the gamingestablishment.

7. Perform any other lawful acts on behalf of thegaming establishment which an owner is entitled to perform. This subsectiondoes not authorize sale of the establishment by the supervisor.

(Added to NRS by 1979, 806)

NRS 463B.170 Retentionof books, records, evidences of debt and accounts in State. Unless otherwise authorized by the court, if a gamingestablishment is under the control of a supervisor:

1. All the books and records relating to the operationof the establishment and all evidences of debts owed to the establishment mustbe kept and retained in the State of Nevada.

2. All the money of the establishment which is to bedeposited with financial institutions must be kept in accounts in financialinstitutions located in this state.

(Added to NRS by 1979, 809)

NRS 463B.180 Ordercompelling delivery of property to supervisor. Ifany property of a gaming establishment is sold, leased or otherwise conveyed orhypothecated in violation of NRS 463B.280,or if any property of the establishment is withheld from a supervisor after hisappointment, the supervisor may petition the district court in the district wherethe gaming establishment is located for an order compelling delivery of theproperty to the supervisor.

(Added to NRS by 1979, 809)

NRS 463B.190 Effectof appointment of supervisor upon obligations of establishment. This chapter does not affect the right of a creditor tocommence or continue foreclosure or other proceedings to collect a secured orunsecured debt, and, consistent with the public policy of this chapter, theappointment of a supervisor must not be treated as an event precipitating adefault or acceleration under any note, lease, deed of trust or other extensionof credit. Except as provided in this chapter, the supervisor is not entitledto assert any right, claim or defense other than one available to the gamingestablishment or any licensee or former licensee connected therewith.

(Added to NRS by 1979, 806)

NRS 463B.200 Distributionto former legal owner; exceptions.

1. Except as otherwise provided in subsection 2 andsubject to prior approval by the court which appointed him, a supervisor may,consistently with regulations to be adopted by the Commission, make periodicdistribution of earnings to the former legal owner of the gaming establishment.

2. Upon petition to the court by the Commission,earnings that would otherwise be distributed pursuant to subsection 1 must,except as otherwise provided in this subsection, be paid into the court pendingjudicial review of the final determination of the Commission. An amount of theearnings which represents the reasonable rental value of the premises must beretained by the supervisor for distribution to the former legal owner. If theCommission has ordered suspension or revocation of a license and:

(a) The Commissions order of suspension or revocationis upheld after final judicial review; and

(b) The gaming establishment is sold pursuant to thischapter,

allearnings, except the amount representing the reasonable rental value of thepremises as determined by the court, which were paid into the court pursuant tothis subsection are forfeited and must be deposited in the State General Fund.If that order is reversed or otherwise modified and the former legal ownerregains his license, the earnings must be distributed to him.

(Added to NRS by 1979, 807; A 1985, 804; 1991, 1014)

NRS 463B.210 Reportsby supervisor: Filing; inspection.

1. A supervisor shall file with the court whichappointed him and the Commission reports on the administration of the gamingestablishment in such form and at such intervals as the court may prescribe.

2. The reports may be made available for inspection byany creditor of the establishment or person having a substantial interest init, and the court may direct that copies of the reports be mailed to thosecreditors or persons.

(Added to NRS by 1979, 807)

NRS 463B.220 Saleof gaming establishment by former owner: Conditions; approval of court. If:

1. Any person who owned an interest in a gamingestablishment at the date of appointment of a supervisor thereof secures awilling and able buyer for the establishment before the time when thesupervisor must offer the property for sale pursuant to NRS 463B.230;

2. The persons who owned a majority of the interest inthe establishment on the date of the supervisors appointment approve the termsand conditions of the proposed sale; and

3. The buyer obtains a license to operate theestablishment within 6 months after the time when the supervisor must offer theproperty for sale pursuant to NRS 463B.230,

thesupervisor shall petition the court which appointed him for approval of thesale, providing notice to parties as the court may direct, and, if the courtgrants approval, shall carry out the sale on the terms and conditions agreed tobetween the parties.

(Added to NRS by 1979, 807)

NRS 463B.230 Saleof gaming establishment by supervisor: Time; conditions; approval of court.

1. Except as provided in subsection 2, the supervisorof a gaming establishment shall offer the gaming establishment for sale:

(a) At any time before the time described in paragraph(b), (c) or (d), when requested in writing by the owners of a majority of theequity interest in the establishment to initiate sale proceedings;

(b) Six months after refusal by the Commission to renewthe license for the establishment for failure of a licensee to fulfill acondition of his license;

(c) If no petition for judicial review is taken fromthe determination of the Commission to revoke or suspend the license, 6 monthsafter the last date on which a petition for judicial review could have beenfiled; or

(d) If a petition for judicial review is taken, 6months after exhaustion of any right of appeal in the courts of this stateresulting in a final determination which upholds the revocation or suspensionof the license,

whicheverdate is later.

2. The supervisor shall not offer the gamingestablishment for sale if a timely sale of the establishment has beenconsummated pursuant to NRS 463B.220.

3. The supervisor shall exert his best efforts tosecure a buyer for the gaming establishment, including advertising, to assure afair price. He may employ brokers and other persons to assist him in securing asuitable buyer.

4. A supervisor shall not accept any offer to purchasethe gaming establishment made by a person who does not possess a license issuedpursuant to chapter 463 of NRS which wouldpermit him to operate the establishment, except that the supervisor may acceptan offer which is contingent upon the buyers procuring such a license.

5. The supervisor shall petition the district courtwhich appointed him for approval of the terms and conditions of the sale. Ifthe court approves the sale, the supervisor shall, if the buyer obtains alicense to operate the establishment, consummate the sale.

(Added to NRS by 1979, 807)

NRS 463B.240 Saleof gaming establishment: Notice; transfer of property to buyer; payment ofproceeds to former owners. The followingprovisions apply to any sale of a gaming establishment pursuant to thischapter:

1. All known creditors and other persons designated bythe court who are known to have had a legal ownership interest in the gamingestablishment immediately prior to the appointment of the supervisor must benotified of the proposed sale at least 30 days before the hearing on thepetition for approval of the sale. The notice must be delivered personally orsent by registered or certified mail to the last known address of each suchperson. The court shall also order that notice be published in a newspaper ofgeneral circulation in the county in which the establishment is located. If theaddress of a creditor or owner is not known, or personal service is notpossible for some other reason, service by publication shall be deemedadequate. Any person so notified may file with the court a statement ofobjections to the proposed sale, including all grounds for the objections no laterthan 10 days before the hearing.

2. Upon completion of a sale pursuant to this chapter,the appointment of the supervisor terminates, except that he shall convey allhis right, title and interest in the property of the gaming establishment tothe buyer and shall pay the net proceeds of the sale to those persons who ownedthe property at the time he acquired it, or their successors or assignees,according to their respective interests.

(Added to NRS by 1979, 808)

NRS 463B.250 Objectionto suitability of supervisor; petition for account or review of qualificationsor performance of supervisor; petition for removal of supervisor or terminationof supervision.

1. Any person who suffers or is likely to sufferdirect financial injury as the result of an act or omission of a supervisor mayfile an objection with the Commission to the suitability of the supervisor.

2. Any person described in subsection 1 may petitionthe district court which made the appointment for an accounting or for a reviewof the supervisors qualifications or performance.

3. If at any time the district court finds that asupervisor is not qualified or available to serve as supervisor, it shallrequest from the Commission the names of two or more persons who the Commissionbelieves are suitable and qualified to manage a gaming establishment and areavailable to serve as a supervisor unless, in the opinion of the Commission,only one person is available who is qualified to serve, in which case theCommission may name only that person.

4. The Commission may, at any time after theappointment of a supervisor, petition the court for the removal of thesupervisor and the appointment of a new supervisor or for the termination ofthe supervision.

(Added to NRS by 1979, 807; A 1991, 1014)

NRS 463B.260 Certaincircumstances requiring termination of appointment of supervisor. The appointment of a supervisor terminates if any court ofthis state or of the United States overrules the Commissions decision torevoke or suspend the license for operation of the gaming establishment, or ifthe Commissions petition for termination is granted, except that thesupervisor shall transfer to the appropriate persons their respective interestsin the establishment.

(Added to NRS by 1979, 809)

NRS 463B.270 Limitationon personal liability of supervisor. A supervisoris not personally liable for:

1. Any secured or unsecured debt of the gamingestablishment incurred before, during or after his appointment.

2. Any penalty which may be assessed against a formerlicensee for his failure to pay or the late payment of any license fee or taxlevied pursuant to chapter 463 of NRS.

3. Any act or omission made by him in the exercise ofprudent business judgment or pursuant to an order of any court.

(Added to NRS by 1979, 806)

NRS 463B.280 Unlawfulacts; penalty.

1. It is unlawful for a person during the pendency ofany proceeding before the Commission which may result in the appointment of asupervisor or during the period of supervision:

(a) To sell, lease or otherwise convey for less thanfull market value or to hypothecate any property of a gaming establishment.

(b) To remove from this state or secrete from theCommission or the supervisor of a gaming establishment any property, money,books or records of the establishment, including evidences of debts owed to it.

2. A person who violates any provision of subsection 1is guilty of a category D felony and shall be punished as provided in NRS 193.130.

(Added to NRS by 1979, 809; A 1995, 1295)

 

Disclaimer: These codes may not be the most recent version. Nevada may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.