Why Aren't Dotty's Required to Have a Certain Number of Hotel Rooms?

Concerning today’s QOD about the requirement that casinos have a certain amount of hotel rooms, where do casinos such as Dotty’s and PT’s fit into that stipulation? How do they get around the rules?

This question came off a QoD we ran in mid-February about the state law that requires casinos to have a certain number of hotel rooms attached. The question specified "non-restricted gaming licenses," which leads us to the answer to today's question.

The reason that bars with slots and video poker machines aren't required to have hotel rooms is that they operate under "restricted" gaming licensees, meaning they have 15 or fewer machines incidental to the primary purpose of the business.

Restricted licensees aren't required to provide accommodations, hence the boom of slot routes, which you'd find in a convenience store or a Dotty’s and are managed by a slot route operator.

Nevada Gaming Control Board researcher Michael Lawton took us a step further. “Several Dotty’s and PT’s locations that are non-restricted locations in Clark County are grandfathered licensees, so they're not required to have hotel rooms, due to the fact that the license was issued prior to July 1, 1992, and the gaming operations weren't ceased for longer than two years,” which would have nullified the grandfathered license.

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Dave_Miller_DJTB Mar-26-2021

‘Incedental’ / Revenue

Aren’t the establishments with restricted licenses supposed to draw most of their revenue from non-gambling sources?

Clearly, slot parlors like Dotty’s, etc., make most of their revenue from the slot machines.

So how do they get around THAT rule?

Brent Peterson Mar-26-2021

What Incidental Means

Here is a pretty good explanation of how the Gaming Control Board and the Nevada Gaming Commission define "incidental" in regards to restricted gaming licenses: 

https://www.lewisroca.com/publication-restrictedguide

Llew Mar-26-2021

Dave

The answer clearly states that Dotty’s etc were grandfathered  in

Question of the Day - 26 March 2021

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