Nevada has eliminated a disseminator model for horse racing data and simulcasts that was over 80 years old and replaced it with a more flexible framework that could benefit the casino industry as racetracks and technology providers distribute content and wagering access more directly to casinos and their customers, which is expected to boost race-book economics for Nevada properties. The change took effect January 1 after the Nevada Gaming Commission revised race and off-track pari-mutuel rules.
Specifically, the legislation removed statutory references to disseminators and instead authorized racetracks to contract directly with licensed race books or system operators for off-track pari-mutuel wagering and information, effectively dismantling the mandatory disseminator layer that dates back to the 1940s or the era of Bugsy Siegel in Nevada, as noted by CDC Gaming.
The advantage for Nevada casinos and race books is that they can access more competitive technical and commercial options for commingling, race information services, and simulcast delivery instead of being locked into a single disseminator arrangement. Analysts note that the change could also help lower intermediary fees, modestly improve racebook margins, and expand content and product flexibility for Nevada operators such as Caesars Entertainment (CZR), MGM Resorts (MGM), Wynn Resorts (WYNN), Boyd Gaming (BYD), and Red Rock Resorts (RRR), although the impact is anticipated to be minor in terms of corporate quarterly earnings.
Last week, the Nevada Gaming Control Board reported that gaming win on the Las Vegas Strip slipped 0.6% in November to $784.3 million on a year-over-year comparison. The report confirmed that headwinds such as pricing concerns and international tourism declines continue to impact the Las Vegas Strip. Statewide gaming win was up 2.4% year-over-year in November to $1.35 billion. Downtown Las Vegas casinos saw gaming win jump 10.3% during the month to $87.2 million. Meanwhile, Reno casinos reported gaming win increased 7.1% during the month to $55.6 million.