Nevada has a unique challenge with non-instructional learning (NIL) as home to the “Entertainment Capital of the World.” Assembly Bill 254 (2021) would provide “light” regulation—protecting athletes but leaving universities in a gray area. The gaming nexus creates a regulatory “third rail”—effectively prohibiting gambling approval. Senate Bill 70 (2023) FAILED, leaving an enforcement vacuum exposed by the Matthew Sluka incident ($100K promised, $3K given, agent NOT registered). “Trade secret” protections are eroding, Nevada Supreme Court rules. NIAA allows NIL in high school with restrictions. UNLV has joined the House settlement. Here’s the full guide.
The Evolution of NIL in Nevada
Nevada was an early adopter of NIL, but its “light” approach to the system has become outdated. The gaming Nexus creates unique constraints, and the Matthew Sluka incident exposed systemic vulnerabilities in the collective model.
Assembly Bill 254 (2021, effective January 1, 2022):
- Signed by Governor Sisolak — Nevada’s Fundamental Independent Learning Law (NIL)
- “Light touch” on defense – prevents athletes from being punished by the NCAA
- Cannot cancel eligibility or scholarship for third-party NIL
- Disclosure regime: Athletes must disclose contracts to the institution
- Insufficient guidance on facilitating university affairs – compliance officers in a gray area
Senate Bill 70 (2023) — REJECTED:
- Would give the Secretary of State the authority to investigate violations
- Proposed: Subpoena powers, cease and desist orders, administrative fines
- The failure left a regulatory vacuum — enforcement is reduced to failure to enforce general contract law
- An environment where unregistered agents and verbal promises are prevalent
Gaming Nexus — UNIQUE limitation:
- Nevada = legalized sports betting capital
- NRS Section 465: Strict restrictions on betting activities
- NIL partnership with casinos/bookmakers = “radioactive” for compliance
- Fear of scandals related to distortion of positions (historical trauma of UNLV)
- The Vegas Effect Program: UNLV Policy Strictly Prohibits Gambling Endorsements
- The state’s most profitable industry is effectively fenced off from athletes
The Matthew Sluka Incident (September 2024) is a turning point:
- UNLV quarterback (transferred from Holy Cross) self-exempted after 3 games
- Allegedly: Assistant coach was verbally promised a NIL package of $100,000.
- Reality: Only received $3,000 in relocation stipend
- Friends of UNILV denied the existence of any contract
- Agent Marcus Cromartie was NOT registered in Nevada at the time of the negotiations
- The “oral contract trap”: no written agreement = no right to protection
- Irony: NCAA rules are used to JUSTIFY non-payment
The battle for transparency — the protection of “trade secrets” is being undermined:
- Las Vegas Review-Journal v. UNLV/NSHE lawsuit
- Nevada Public Records Act (NRS 239) vs. Trade Secrets (NRS 600A)
- LVRJ v. UNLV (2023): Nevada Supreme Court overturns decision to deny entry of records
- Court: NPRA is interpreted broadly, exceptions are narrowly
- Income distribution = public funds = harder to protect
NIAA NIL High School — Allowed with restrictions:
- The Nevada Interscholastic Activities Association (NIAA) allows NIL
- No affiliation: No use of school name, logo, uniform, or facility
- No pay-to-play: cannot depend on results or registration
- Independent: School administration removed from process
Why Nevada matters:
Nevada’s Gaming Nexus UNIQUE — state’s most lucrative industry is separated from athletes. Matthew Sluka incident is a national case study in the collective failures of the models (oral promises, unregistered agents, “pay-to-play” protections). “Light touch” on AB 254 is now outdated compared to aggressive states like Missouri. SB 70 failure left an enforcement vacuum. Nevada Supreme Court signals preference for transparency. UNLV accepts House deal — should find ~22% of revenue for athletes.
NIL rules at Nevada College
Nevada college athletes operate under the “light touch” principle of AB 254, but face unique constraints related to the gaming Nexus and the collective ecosystem exposed by the Sluka incident.
What Nevada law guarantees:
- Cannot cancel eligibility or scholarship for third-party NIL
- The right to monetize your name, image and likeness
- Protection from NCAA fines for third-party compensation
Friends of UNILV (UNLV Team):
- The primary team supporting UNLV athletics
- Membership: exclusive events, merchandise for contributions
- Uses the “Vegas effect” – connections in entertainment and business
- Technically separate but strategically aligned with the sports department
Friends of the Pack + EmPOWER (UNR Teams):
- The bifurcated model at the University of Nevada, Reno
- Packmates: Football and Men’s Basketball (Blueprint Sports Partner)
- EmPOWER Collective: Focus on female student-athletes
- EmPOWER = “Equipping our women with equal resources”
- Silver State Showdown Campaign Gamifies UNLV vs. UNR Competition
Prohibition of gambling – category “Radioactive”:
- NRS Section 465: Betting activities are strictly controlled
- Casino/bookmaker partnership NIL = “radioactive” for compliance
- The Vegas Effect program explicitly prohibits the endorsement of gambling
- Concerns about Nevada Gaming Control Board investigation
- Preventing scandals with aggravating positions (historical UNLV trauma)
House settlement — UNLV agrees:
- UNLV officially agrees to deal with House of Representatives
- Need to find ~22% of revenue to redirect to athletes
- The Group of Five institution has no income from Power 4 media rights
- The “pay for talent” model is likely inevitable
Nevada High School NIL Rules
NIAA allows NIL in high school with strict “amateurism” restrictions that ensure separation between the student’s commercial activities and the school.
Key facts:
- Governing Body: Nevada Interscholastic Activities Association (NIAA)
- Status: Allowed with restrictions
- Balances economic rights with traditional high school values
The main limitations of NIAA:
No affiliation: No use of school name, logo, uniform, or facility in any NIL activity. No wearing of school jersey in advertising. No pay-to-play: Compensation cannot be contingent on athletic performance or enrollment at a specific school. Independent representation: NIL agreements must be independent of school administration. Schools are excluded from the process to avoid liability.
Comparison with the aggressive Missouri model:
Nevada does NOT explicitly allow pre-enrollment incentives for high school students. Missouri law HB 417 allows high school graduates to negotiate/receive NIL (no enrollment) before enrollment (if a contract is signed with an in-state school). Nevada = competitive disadvantage. UNLV technically has to wait until enrollment or rely on outside teams “in the shadows” – a practice that led to the Sluka disaster.
College vs. High School: Key Differences
Feature College (AB 254) High School (NIAA)
NIL Status Legal ("light touch") Permitted (restricted)
Institutional Pay Allowed ($22M cap) Prohibited
University Facilitation Grey zone (scant guidance) N/A
Gaming Endorsements PROHIBITED ("radioactive") N/A
School Logos/Uniforms Allowed (conflict check) Prohibited
Agent Enforcement Weak (SB 70 failed) N/A
Pay-for-Play Prohibited Prohibited
Pre-Enrollment Deals Not explicitly authorized Prohibited
Key Difference: Nevada’s Gaming Nexus is UNIQUE — the state’s most profitable industry (casinos/bookmakers) is separated from athlete endorsements. “Light touch” on AB 254 leaves university support in a “gray area.” SB 70 failure = weak enforcement by agents (exposed by Sluka incident). Nevada Supreme Court signals preference for transparency — “trade secret” protections are eroding. Compared to Missouri’s aggressive model, Nevada has a competitive advantage in high school enrollment.
What Nevada athletes can do
College athletes:
- Receive direct revenue sharing from the institution ($22 million limit, UNLV agrees)
- Collaborate with Friends of UNILV (UNLV) or Friends of the Pack/EmPOWER (UNR)
- Sign advertising deals with brands (non-gaming)
- Monetize social media accounts
- Earn money from camps, clinics, and performances
- Sell autographs and merch
- Hire agents for NIL contracts
- Get fan support through platforms like RallyFuel.
High school athletes:
- Sign commercial advertising agreements (without school affiliation)
- Monetize social media accounts (without school branding)
- Earn money from autograph sessions and performances
- Create a personal brand regardless of the school’s identity.
What Nevada athletes can’t do
College athletes:
- CANNOT support casinos, bookmakers or gambling organizations (“radioactive”)
- Cannot conflict with existing university sponsorship programs (Nike/Adidas, etc.)
- Cannot wear competitor brands during official team events
International students (F-1 visa):
- Cannot engage in active night sports in the United States.
High school athletes:
- you cannot use the school name, logo, uniform or equipment
- cannot accept payment for the game (depending on the results)
- cannot accept compensation that depends on enrollment
- The school administration must be excluded from the process.
Both:
- must pay NIL income taxes (Nevada has NO state income tax – this is an advantage)
- must maintain academic eligibility
- must disclose contracts to the educational institution (college).
Compliance requirements
For college athletes:
- Disclose all NIL contracts to the institution (AB 254 mandate)
- Collaborate with Friends of UNILV (UNLV) or Friends of the Pack/EmPOWER (UNR)
Conflict check:
- Ensure that agreements do not conflict with university sponsorship
- AVOID gambling endorsements — The Vegas Effect strictly prohibits
- Check if agents are registered in Nevada (Sluka lesson)
- GET WRITTEN CONTRACTS — verbal promises are not refundable
- File federal taxes (Nevada state income taxes are not paid)
For high school athletes:
- NEVER use the school’s name, logo, uniform, or premises
- NEVER agree to pay-per-play agreements or enrollment terms
- do not allow school administration to participate in the NIL process
- file federal taxes (Nevada has no state income tax).
For parents, lessons from the incident in Sluka:
For college:
- DEMAND WRITTEN CONTRACTS — oral promises have no legal protection
- Check if agents are registered in Nevada
- Understand that coaches cannot bind teams with financial promises
- Gaming approval = “radioactive” regardless of Las Vegas location
- No state income tax = competitive advantage over many states.
For high school:
- NONE is allowed, but school segregation is absolute
- No payment for the game, no incentives for enrollment
- Unlike Missouri, Nevada does NOT allow pre-enrollment agreements.
How fans support Nevada athletes
Nevada has ardent Rebel and Wolf Pack fans, and now they can directly support the athletes through NIL.
College athletes:
Platforms like RallyFuel allow Nevada fans to support athletes at:
- UNLV (University of Nevada, Las Vegas) – Mountain West
- UNR (University of Nevada, Reno) – Mountain West
- All sports – football, basketball and others
Nevada Collectives:
UNILV Friends: UNLV’s core team, uses the “Vegas Effect.” Flock Friends: UNR Football and Men’s Basketball (partnered by Blueprint Sports). EmPOWER Team: Focus on UNR Women’s Sports (“Providing Our Women with Equal Resources”). “Silver State Showdown”: Gamifies the UNLV vs. UNR team competition.
How it works:
1. Create an account on RallyFuel.com or the mobile app
2. Select your Nevada training program
3. View verified athletes currently in your program
4. Support the athletes you want to support
5. Track your support through the fan dashboard
How it works: When you purchase Fan Fuel, you are purchasing Conditional No-Entry Entitlements (CNER). If the conditions are met, RallyFuel or its affiliate offers the athlete a NIL deal. If the conditions are not met, for example if the athlete moves to another team, you receive an automatic refund.
Contingency Protection: RallyFuel’s contingent model protects Fan Fuel with automatic refunds if athletes move to other countries or conditions are not met. Nevada fans can support players without financial risk.
Important: Support for fans through RallyFuel is voluntary and conditional. Fuel purchases are not charitable donations. RallyFuel does not guarantee that any athlete will accept the No Donation Agreement. Fuel purchases for fans do not guarantee athletic performance, playing time, or any specific outcome.
High school athletes:
Nevada high school athletes may utilize NIL opportunities under NIAA rules, provided they are completely separate from their school identity. No pay to play, no incentives to enroll.
Learn more about the NIL landscape
Name, image, and likeness play an increasingly important role in college sports, and understanding how it works often requires more than individual articles or news stories.
RallyFuel is a platform focused on topics related to modern college athletics (NIL). It brings together information about athletes, NIL activities, and the broader structure of modern college athletics, helping readers explore the topic in greater depth.
Frequently asked questions
Can Nevada high school athletes pass the NIL?
Yes. NIAA allows NIL in high school with certain restrictions. No use of school name, logo, uniform, facilities). No paying to play or incentivizing enrollment. School administration must be excluded from the process. Unlike Missouri, Nevada does NOT allow direct incentivization before enrollment.
What is Nevada’s “gaming nexus”?
UNIQUENESS to Nevada: As the birthplace of legalized sports betting, NRS Section 465 and Nevada Gaming Commission rules strictly regulate betting activities. NIL partnerships with casinos or bookmakers are “radioactive” for compliance. UNLV’s “Vegas Effect” program explicitly prohibits endorsement of gambling. Fear of point-deducting scandals (historical injury to UNLV). Irony: The state’s most profitable industry is separated from its student-athletes.
What is the Matthew Sluka incident?
September 2024: UNLV quarterback Matthew Sluka (transfer from Holy Cross) voluntarily resigned after 3 games. His agent claimed an assistant coach verbally promised him $100,000, but Sluka only received $3,000 in compensation for the move. Friends of UNILV denied any contract existed. Agent Marcus Cromartie was NOT registered in Nevada. The “oral contract trap”: no written agreement = no legal protection. Irony: UNLV cited NCAA rules to JUSTIFY the non-payment. National case study of collective model failures.
Why did Senate Bill 70 matter?
SB 70 (2023) would have given the Secretary of State the authority to investigate NIL violations, issue subpoenas, and impose fines. Its FAILURE left a regulatory vacuum—enforcement inconsistent with common contract law. This environment allowed unregistered agents and verbal promises to proliferate, directly contributing to the Sluka disaster.
Does Nevada have a NIL state income tax?
NO. Nevada has NO state income tax—a competitive advantage over most states. Athletes only pay federal and self-employment taxes. This makes Nevada attractive to those who don’t have income tax, compared to high-tax states like California or New York.
What happens if an athlete I supported transfers?
If an athlete transfers or chooses another school during the conditional period, you will receive an automatic refund to your original payment method. No manual request is required.
Nevada: The NIL Paradox in the Entertainment Capital
Nevada has unique challenges with NIL (Nultiple Insurance – free tuition). Gaming Nexus insulates state’s most profitable industry from athlete sponsorship. AB 254’s “light touch” system is outdated in contrast to aggressive states like Missouri. SB 70’s failure left an enforcement vacuum exposed by Matthew Sluka incident ($100K promised, $3K given, unregistered agent). Nevada Supreme Court signals preference for transparency — “trade secret” protections are eroding. UNLV accepts House deal. NIAA allows NIL in high school with restrictions. NO state income tax = competitive advantage.
For college athletes ready to maximize their potential without injury, RallyFuel offers fan support and conditional protection. Meet Nevada’s proven athletes and start fueling today.
Leave a Comment