Article  |  Volume 2

Welcome to Fabulous Las Vegas: The Nevada Gaming Regulatory Response to Sovereign Wealth Fund Investment

by John J. Piro

The bulk of recent scholarly work surrounding sovereign wealth funds ("SWFs") is dedicated to assessing the federal regulatory systems’ adequacy—or likely, inadequacy—in dealing with issues unique to SWF investment. However, the federal regulatory system has not been the only regulatory body to deal with SWF investment in the United States. In 2008, one of the United Arab Emirates’ (“UAE”) SWFs, Dubai World, made a large investment into the Nevada gaming industry and was found suitable to purchase up to twenty percent of MGM Mirage’s stock. This article will address how the Nevada gaming regulatory system has found an effective way to deal with SWF investment in a manner that maintains an open market welcoming to foreign direct investment yet avoids compromising Nevada’s stringent gaming investment standards.

2 UNLV Gaming L.J. 167 (2011)