Mike Dreitzer knew from experience that Nevada always lagged behind other states when it came to getting new games and technology onto casino floors.

It’s why one of his initial acts after becoming chairman of the Nevada Gaming Control Board this summer was to institute changes to the agency’s test lab procedures that allowed for a quicker approval process.

“I think it’s important for regulators in any jurisdiction to work at a faster pace,” said Dreitzer, 54. “When it came to lab matters and gaming technology, we weren’t moving at the speed of business.”

The Nevada Independent checked in with Dreitzer six months after he took over as the state’s top gaming regulator. He took an unusual path, from CEO of a gaming equipment company to state service that is often lower paid. 

Dreitzer took over some thorny debates in the new job, including a fight over prediction markets that have exploded in popularity and threatened to cannibalize sports betting in Nevada. The companies have eluded state regulation and the battle is taking place in the courts.

And then there’s the red tape: Dreitzer said state casino operators often launched new games in markets outside Nevada.

“The message was, ‘We’ll get to Nevada last because it’s just too complicated,’” he said.

Dreitzer’s changes were welcomed by the Association of Gaming Equipment Manufacturers (AGEM). The 145-member trade organization, led by some of the casino industry’s largest slot machine developers, had been pushing for revisions to speed up Nevada approvals.

“Mike is a person who not only understands the control board, its operation and its mission, but also how the equipment companies operate,” said AGEM Executive Director Daron Dorsey. “He’s been a competitor and a collaborator, which is great for the supplier side.” 

Dorsey said the changes in the lab and processes in approving gaming equipment allow developers to include Nevada as part of national launches of new slot machines.

“Being able to hit multiple [jurisdictions] at the same time is a benefit to suppliers,” Dorsey said.

Jumping into the job

Dreitzer said he is following through with the work started by his predecessor, Kirk Hendrick, in streamlining the control board’s regulatory process. The effort began in 2023 following a mandate by Republican Gov. Joe Lombardo in his first State of the State address to eliminate outdated regulations. 

“I think having a background in manufacturing helps in the process,” Dreitzer said.

It’s been a busy few months for the new chairman. 

He took over the legal fight started by Hendrick earlier this year to keep Kalshi and other federally regulated prediction markets from offering sports contracts in Nevada. Also, sports betting operators FanDuel and DraftKings, which have never sought Nevada licensing, formally agreed to stay out of the Silver State to focus efforts on launching prediction markets in the U.S.

“It’s a difficult problem for us,” Dreitzer said, adding that Nevada views sports event contracts as wagers that should be regulated and taxed by the state.

“There are decades of precedent that this is a states’ rights issue and Nevada is within its proper purview,” he said.

And then there’s been discipline for brick-and-mortar casinos. In November, the control board reached a stipulated settlement with Caesars Entertainment in which the gaming company agreed to pay a $7.8 million fine to cover a five-count complaint after the state gaming agents found illegal bookmaker Mathew Bowyer had gambled millions of dollars at Caesars Palace and several of the company’s other Strip properties over seven years.

The fine followed $10.5 million paid by Resorts World Las Vegas in March and $8.5 million from MGM Resorts International in April over violations of anti-money laundering laws. 

The combined settlements brought to light the need to make changes to strengthen the state’s anti-money laundering regulations.

“Fines are understood and important, but the other part is having regulations that will enable licensees to have better information so they can make better decisions about whether or not to allow credited folks to play at their places,” Dreitzer said.

Earlier this month, the control board nominated another illegal bookmaker, Wayne Nix, for inclusion in Nevada’s List of Excluded Persons, commonly referred to as the Black Book. Dreitzer said Bowyer would be nominated at the board’s meeting in January.

“It’s an important tool and sends a message that Nevada, the oldest and most well-established regulatory body in the world, is the gold standard of regulation,” he said. “We must use all the tools available to us.”

Timing is everything

Dreitzer’s CEO experience provided an unusual path to the control board chairmanship, which had traditionally been a person coming through a state agency or other government work. 

The last time a similar move took place was in 2009, when Republican Gov. Jim Gibbons appointed gaming executive Mark Lipparelli to the control board. Lipparelli became chairman two years later and served in the position for 21 months before his appointment to a vacant Nevada state Senate seat.

For Dreitzer, it was good timing. 

Hendrick announced in January that he would step down as chairman in June, following the legislative session, allowing Lombardo time to select a new head of the statewide, 400-person agency charged with regulating and enforcing the laws associated with Nevada’s largest industry. 

Meanwhile, Las Vegas-based gaming equipment developer Gaming Arts, where Dreitzer had been CEO since 2018, announced in April that the privately owned company was being purchased by Germany-based Merkur Group. 

In addition to working for Gaming Arts, Dreitzer spent time as an executive with Mikohn Systems, president of Australia-based Ainsworth Game Technology’s North American division in Las Vegas and was the chief operating officer of test lab and gaming consultant BMM Americas.

As a licensed attorney, Dreitzer worked with Hendrick in the attorney general’s office’s gaming division in the late 1990s. He reached out to his longtime colleague to inquire about the control board chairmanship. Lombardo announced Dreitzer’s appointment in April, and Hendrick left in June after the legislative session ended.

“I’m honored with the ability to have this position and make the kind of impact that I think this role can offer,” Dreitzer said. “This is the only job that I would have taken. The timing worked out because the merger was finalizing around the same time that Kirk was leaving this role.”

The control board chairman earns more than $211,000 as of 2023. Most gaming CEOs can earn double that amount because of bonuses and stock options based on performance.

“I don’t know how many people would be in a situation, 30 years into a career, that they would take a government role like that,” Hendrick said. “So I think that says a lot about his character and his financial sacrifice to take this role on behalf of the state.”

Hendrick said Dreitzer brings a different set of skills to the board, having practical experience with privately held and publicly traded companies.

“Mike possesses a uniquely qualified vision for the technology division,” Hendrick said. “I’ve always believed that having effective regulation doesn’t mean that you have to stifle lawful innovation.”

‘I believe that licensees want to do the right thing’

Dreitzer is the third appointed board chairman that Nevada Gaming Commission Chairwoman Jennifer Togliatti has worked with since 2021. The full-time control board makes recommendations on licensing and other matters to the part-time commission.

“He’s done a remarkable job of getting up to speed quickly and trying to move projects forward,” Togliatti said. “I’ve enjoyed working with him. He has a good grip on what’s going on and what needs to be done.”

Dreitzer said even with his gaming industry experience, there isn’t “a definitive formula” that makes up the position of control board chairman. He said having regulators from different backgrounds adds to the panel’s overall perspective and the regulatory process. 

The current board includes former Las Vegas Municipal Judge George Assad, who has been on the panel since January 2023, and attorney Chandeni Sendall, who served in the Reno City Attorney's Office for 10 years as a deputy city attorney. She was appointed in January.

Dreitzer said he took some inspiration from Hendrick, who called gaming regulation “a continual improvement project and the job is never done.” 

As a CEO, Dreitzer dealt with gaming regulators in more than 200 jurisdictions worldwide.

“I believe that licensees want to do the right thing,” he said. “Are there bad apples? Sure. It’s our job to use every tool we have to be able to root them out and to improve all of these areas.

Dreitzer, whose term expires in January 2027 and is expected to earn a full four-year term if Lombardo is re-elected, said he isn’t thinking that far ahead. His focus is on improving gaming technology, dealing with prediction markets and making regulation more efficient.

“These are all things I’m focusing on. The future will take care of itself,” Dreitzer said.