Nevada Considers Licensing Sports Data Providers to Enhance Oversight

Nevada’s gambling watchdog is looking into the idea of giving licenses to sports-data companies. This shows how sports betting is changing all over the US. The regulator’s representatives talked about this plan at a recent Nevada Gaming Control Board (NGCB) meeting, and they will decide what to do in 2025.

NGCB Chairman Questions Oversight of Third-Party Data Providers

Kirk Hendrick, who is the Board’s chairman, asked if gambling regulators have enough control over everyone involved in sports betting. He pointed out that the rules were made when things were simpler and there were not as many companies in the industry, as reported by CDC Gaming.

Jim Barbee, who runs the Board’s tech division, said the system they use now gives licenses to operators and information services. However, it does not pay attention to third-party sports-data providers who have an impact on the odds and lines bettors see. These providers are not the same as those who give raw stats. Instead, they turn the information into data that people can bet on.

Barbee pointed out that as sports betting has grown bigger and more complex new risks have emerged. Without direct oversight, regulators cannot see how these third-party providers work. If these companies had to get licenses, they would need to register. This would let the Board check their practices and hold them responsible if they make mistakes or do something wrong.

Barbee gave an example where sportsbooks allowed bets on events that had already begun because of timing mistakes. These incidents, though not always done on purpose, show there is a need for better controls across the system. Right now, the Board can look into licensed information services, which leaves a hole when problems come up with unlicensed third parties.

Proposed Licensing Rules for Sports Data Providers Divide Nevada Gaming Regulators

The plan to license third-party providers aims to make things clearer and hold people accountable, but not all Board members agree. George Assad wondered if more rules are needed, pointing out that the current setup already makes licensed places like casinos and sportsbooks take responsibility for any issues. He said extra rules can be avoided by focusing on the bigger licensed companies that have more money and resources.

However, Hendrick argued that unregistered providers might blame others leaving regulators with no way to hold them accountable. He recognized the broader aim to cut unnecessary rules but said this measure would fix a big problem in the current system.

Barbee estimated that about 15 to 20 companies would need to register under the new plan, which would not be too much work to manage. While this move would make Nevada look tough on oversight, Board members are also aware that their staff has limited resources.

If put into action, the plan could make Nevada’s rules similar to other states like New Jersey where such entities already have to register. This step could boost trust in the industry and give regulators tools to tackle future issues in the fast-changing sports betting world.