Toward the end of 2010, Clark County placed a moratorium on new tavern licenses for 70 days. This suspension has been enacted as a result of the formal definition of a tavern and whether the code needs to be updated. The Clark County commission voted 4-3 to implement this moratorium. However, those applications submitted prior to this enactment have not been affected by this halt.
The Current Definition
According to state regulations and Clark County code, taverns are permitted to feature gaming that is “incidental” to its primary business operations. However, some businesses are operating as taverns but their primary source of profit stems from gaming. This is the exact situation the code is attempting to prevent. This is known as “Dotty’s Model” which is representative of the actions taken by National Restaurant Services, Inc., the owners of Dotty’s brand.
National Restaurant Services, Inc.
This organization publicly argued that this suspension and reorganization of the county code was targeted specifically at their company as a result of successful growth. Dotty’s restaurants and taverns typically house a bar with 15 slot and video poker machines at its numerous locations. These all occurs under a restricted gaming license, but has developed into a successful chain.
The Nevada Resort Association
On the other hand, representatives from the Nevada Resort Association argue business models have changed since the original definition of a tavern. Therefore, the code must be updated as a result of this potential loophole. Those representatives typically act on behalf of major casino organizations.
click here to see most Popular PagesRestricted and Unrestricted Gaming Licenses
The main issue is with the restricted and unrestricted gaming licenses. Restricted licenses are issued to business entities with a different, primary source of income. Unrestricted licenses are granted to casinos that have gambling as their primary source of revenue. Like everything else, this issue also comes down to money. The county collects taxes on revenue from slot machines issued under an unrestricted license while those with a restricted license pay a flat fee per machine.
For the past six months, a discussion regarding this issue has persisted. All parties are attempting to develop a new definition for taverns and are ready to take this to the next step. The moratorium expires on March 1st which can be lifted if common ground is found prior to then. If a consensus is not reached, the commission will present their own ordinance.
Eventually an agreement will be reached to find the definition of a tavern and thus the county code will be changed. Until that point, no business entity can be granted a tavern license in Clark County. This timing is greatly affecting many business timelines and will hopefully be finished soon.
