Nevada Reinforces Player Funds Protection Rules

September 6th, 2012 by Michael Mills

The US state of Nevada reinforces its player protection measures that have been introduced recently. The new rules will require licensed operators to separate player money from active funds.

Not so long ago the Nevadan Gaming Commission has introduced a new set of rules that intends to protect online gambling players from abuse. The new set of rules will have to be followed by each online gambling operator wishing to operate in the state and will also retroactively apply to operators that already received a license.

The new set of rules, among other include the strict separation of player money from active funds. Player money is the cash deposited by players which still belongs to the players while active funds are the money that belong to the poker room or casino due to rakes or players losing.

The reason to adopt such a rule has undoubtedly been sparked by the recent Full Tilt Poker and Purple Longue scandals that have resulted in the gambling operators going bust and not being able to repay players due to the fact that they have been using players' money for their own purposes.

These kinds of rules already existed in the past too but were not actively enforced by online gambling regulatory bodies. In the past, regulatory bodies and jurisdictions used to rely on good faith regarding online gambling operators following this rule, which was not good enough based on past happenings.

So, in order to prevent future abuses from happening, Nevada proposes a new oversight regime that will allow the Gaming Commission to actively monitor online gambling operators and the way how they handle player funds.

What Nevada decided now is that showing bank documents that attest that player money is kept separate in a district bank account is not sufficient. Nevadan authorities decided that operators will also have to give up any ownership, title or interest over the funds deposited by players.

This means that legally online gambling operators will not have any right at all to access player funds until the moment players have lost that money or it represents the rake generated at real money online poker cash tables.

This will also make the tapping into player funds a criminal offense in the state of Nevada. Operators caught tapping into player money would also immediately lose their license and be banned from any future license in Nevada - and possibly in the whole of US if online gambling will be liberalized on a federal level.

More than this, this will actually also protect player funds even if an online gambling operator will go bankrupt. The fact operators will not be allowed to tap into player money means that the money players' deposit will always be available no matter what will happen to the gambling company.

Michael Mills

Portugal to Implement New Online Gambling Regulations

June 30th

The Portuguese government has last week implemented a new law that legalizes online gambling; it however still needs to implement relevant regulations and decide on an online gambling tax rate.

Michael Mills

Senators Lindsay Graham and Marco Rubio Introduce Bill to Ban Online Gambling

June 25th

US Senators Lindsay Graham and Marco Rubio have today introduced a bill that if adopted would ban all form of online gambling in the United States and would overrule state online gambling laws.

Michael Mills

Betfair Publishes Very Strong Full Year Financial Results

June 18th

Online gambling company Betfair just published its full revenue report for fiscal year 2015 revealing a massive increase in profits and revenues for this period.

Michael Mills

US Regulators Launch Consultation on UIGEA Renewal

June 9th

US regulators have requested interested parties to comment on whether or not the provisions of the UIGEA should be renewed or not. Despite this, experts believe that the UIGEA will be renewed without much resistance.

Michael Mills

PokerStars Introduces Sports Betting in the United Kingdom

June 4th

Renowned online poker site PokerStars - now owned by Amaya Gaming - announced that it just launched its new online sports betting brand in the United Kingdom.