Nevada, perhaps more than any other state, understands the importance of readily available credit to its licensed casinos and gaming manufacturers. The Nevada Gaming Control Act, which forms the basis for all gaming regulation, specifically provides that the state’s public policy is “that the rights of the creditors of licensees are protected.” Nevada’s gaming regulatory scheme is quite friendly to creditors. Nevertheless, this accommodation must yield to the broader policies under which gaming is strictly controlled in order to assure that it is honestly conducted and free from criminal and corruptive elements. Some keys to strict regulation are licensing and related approvals of those involved in the gaming industry as well as the reporting, review, and approval of significant transactions. Accordingly, lenders to gaming companies must understand the unique requirements resulting from strict regulation.
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