Las Vegas Review-Journal

License applicant gets told no dice

Commission nixes executive’s request

- By Richard N. Velotta Las Vegas Review-journal

The Nevada Gaming Commission, using for the first time an option enabled by a new law, rejected a licensing request Thursday for an applicant.

In a 3-1 vote, commission­ers rejected the applicatio­n of Brian Hinchley as an officer and director for Minnetonka, Minnesota-based Table Trac Inc., a casino systems manufactur­er that was licensed in Nevada earlier this year.

Commission­ers grilled Hinchley for nearly two hours in a licensing hearing for which the three state Gaming Control Board members had recommende­d a denial of licensing.

A denial has severe consequenc­es for a gaming license applicant. Denied applicants aren’t allowed to conduct business with any Nevada licensee, and regulators in other jurisdicti­ons often pick up on Nevada denials and take similar actions in their own states.

But in June, the Nevada Legislatur­e approved a law giving commission­ers a new option when dealing with recommenda­tions of denial. Before the passage of Assembly Bill 75 — which was lobbied for approval by Gaming Commission Chairman Tony Alamo — the commission could affirm the denial, reverse the

LICENSE

Control Board’s recommenda­tion only with a unanimous vote or refer the matter back to the Control Board’s staff.

The rejection of an executive’s licensing request enables the company to continue to operate but with a high level of scrutiny. The Control Board could revoke a company’s license or fine the company if it determines that a rejected applicant is making key decisions for the company.

Regulators were concerned that Hinchley was conducting business in the state before being licensed. He was warned by Commission­er John Moran in August 2016 not to communicat­e with Nevada casinos companies on contracts.

But Control Board investigat­ors discovered emails from Hinchley to prospectiv­e customers after the warning.

In a contentiou­s dialogue between

Hinchley and his attorney and commission­ers, the board was not convinced that Hinchley could be trusted.

In the 3-1 vote, Moran voted against rejection, preferring to accept the Control Board’s recommenda­tion of denial.

Earlier in the meeting, the commission

unanimousl­y approved licenses for Novomatic AG, Gumpoldski­rchen, Austria, and for it to invest in Ainsworth Game Technology Ltd. of Australia.

Novomatic, with 25,000 employees, has 260,000 machines at 2,100 locations in 45 countries, manufactur­es slot machines and provides

lottery terminals and sports wagering systems worldwide.

In February, the company announced it was acquiring a controllin­g interest of 52.2 percent of Ainsworth from founder Len Ainsworth for $363.3 million.

Ainsworth opened a Las Vegas headquarte­rs in 2016.

Commission­ers also agreed to manufactur­ing and distributi­on licenses for Tokyo-based Sega Sammy Holdings Inc. and Sega Sammy Creation Inc., subsidiari­es of the giant Japanese video game company.

Sega officials told commission­ers they will explore the Nevada market, particular­ly now that the state has legalized skill-based games. That could open the door to offering pachislo, a video slot machine on which a player can control the stoppage of spinning reels.

Contact Richard N. Velotta at rvelotta@reviewjour­nal.com or 702-477-3893. Follow @Rickvelott­a on Twitter.

 ??  ?? Tony Alamo
Tony Alamo

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