Las Vegas still wrestling with rules for tavern gaming

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Justin M. Bowen

Dotty’s near Eastern and Serene in Henderson is shown Thursday, March 24, 2011.

Wed, Jul 1, 2015 (1:27 p.m.)

The Las Vegas City Council decided today to tackle a technically complicated and politically charged issue that has vexed state and local officials in Nevada for years — how to regulate slot machine gaming in bars.

The decision arose out of council discussions about whether to grant a permanent license to a Dotty’s location near Sahara Avenue and Hualapai Way.

The business has been open since March under a temporary license, but final approval has proven elusive after councilman Bob Beers raised concerns about how much money Dotty’s was bringing in from slot machine gaming.

Beers’ objection echoes concerns about Dotty’s business model that have dogged the tavern-gaming giant for years in other jurisdictions around the state.

Under state and local law, revenue from slot machine gaming is supposed to be “incidental” to the primary business of running a bar. But incidental has never been clearly defined, and Beers has argued that Dotty’s gaming-focused business model doesn’t fit the legal definition of a tavern.

With no easy resolution in sight, the Las Vegas City Council approved another extension of a temporary gaming license held by Dotty’s today that will allow the location to continue operating until at least November.

The extension was approved on a 4-3 vote, with council members Bob Coffin, Ricki Barlow and Steve Ross opposed.

In the meantime, city staff will study the bar gaming industry to gather data about the split between earnings from gaming versus the sale of food and drink at Dotty’s and other taverns.

Several City Council members said new data on the industry could help shape future discussions about whether the city’s regulations need to be changed.

Staff is due to report back to the council on the issue on Aug. 5 with a progress update, but it will likely take several months before the study is done and any new laws proposed.

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