Nevada Gaming Regulator Redefines Stance On IP-locked Slot Development

Article by : Erik Gibbs Dec 27, 2024

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Nevada’s gaming regulators are making it easier for slot machine manufacturers to propose new games even if they haven’t secured intellectual property (IP) rights. Starting in 2025, manufacturers can present ideas to the Nevada Gaming Control Board while still exploring the possibility of obtaining IP rights. 

The updated regulation, approved by the Nevada Gaming Commission on December 19, is expected to spur creativity in slot machine themes.

The change clarifies a process already in practice, encouraging manufacturers to seek feedback on game ideas before committing significant financial resources to acquire rights. Jim Barbee, chief of the Technology Division of the Gaming Control Board, explained that the update offers clarity and removes barriers for manufacturers. 

This shift, he noted, could lead to more diverse and innovative slot themes on casino floors.

Previously, only companies that already owned IP rights could approach the Gaming Control Board to determine if their themes aligned with regulatory standards. The new rule allows manufacturers with a “good-faith intention” to acquire rights to submit their concepts for review. This includes an evaluation of game themes, graphics, and overall compliance with public policy.

Barbee shared an example involving a manufacturer interested in developing a slot machine based on the TV series The Walking Dead. The company wanted to ensure the theme’s potentially violent content would pass regulatory scrutiny before investing in the rights. This type of early review can save manufacturers time and money, while also ensuring that new games meet public standards.

The good-faith provision requires manufacturers to demonstrate serious intent and capability to secure IP rights. This addition aims to prevent companies from submitting speculative ideas with no realistic chance of obtaining the necessary permissions. 

According to the Gaming Control Board Chair Kirk Hendrick, the updated regulation aligns legal language with the practical way the process has operated for years.

Hendrick cited the example of Aristocrat’s NFL-themed slot machine. A company interested in a similar project could now seek preliminary approval for the concept before committing to a potentially expensive licensing process.

The attorney general’s office emphasized that this change ensures requests are legitimate, reducing unnecessary workload for regulators. The submission process will still include detailed background checks, game visuals, and other materials to verify a manufacturer’s good-faith effort.

The unanimous approval of the regulation reflects a broader push to support innovation in Nevada’s gaming industry. By streamlining the process for IP-locked slot machine development, the updated rule is expected to encourage manufacturers to bring forward a wider range of creative ideas.