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Click here to read the entire Fall 2009 Issue of Casino Lawyer.

Randall Sayre, Regulator of the Year
By Sharon Harris

Randall E. Sayre, State Gaming Control Board member since 2007 and former chief of the Investigations Division, has been named the International Masters of Gaming Law’s 2009 Regulator of the Year. The annual award honors individuals whose work continues the IMGL mission of “Advancing Gaming Law through Education.”

Each Regulator of the Year honoree must have an outstanding career record of contributing to the gaming industry as a regulator, and the award recognizes individuals for their noteworthy gaming regulatory achievements and for providing a stable regulatory environment within his or her specific jurisdiction.

An Early Call to Serve
Following multiple moves around the U.S., Randall Sayre’s family settled in Fallon, a small west-central Nevada farming town, for Randall’s high school years. Sayre found the town a fascinating mix of agriculture and technology, as a Naval Air Station, the Navy’s Electronic Warfare Center and the renowned Top Gun training center are all based in Fallon.

The close-knit community helped shape Sayre’s values and lifelong dedication to public and military service. He strongly believes in organized structure and always prepares contingency plans.

Sayre participated in a four-year ROTC commissioning program while attending the University of Nevada Reno, where he earned a bachelor of science degree in criminal justice in 1975.

“That was ‘Plan B,’” Sayre says. “I chose that discipline as insurance, should my primary desire to be a military officer not work out.”

Fortunately, all went as planned. After graduation, Sayre immediately departed for active duty with the U.S. Army. He entered Army Rotary Wing Aviation Training, plus maintenance test flight school, before his first active duty unit assignment.

Sayre says, “The Army offered the opportunity for world travel. Korea was my first permanent active duty assignment; I finished years later at the now-closed Fort Ord in California.”

During those years, Sayre continued his education, receiving a master’s degree in public administration in 1980 from Golden Gate University’s satellite campus in Monterey, Calif.

Sayre is also certified as a rotary wing instructor pilot. However, most significant to him is his 1997 graduation from the U.S. Army War College. The course is reserved for higher-ranking military officers and U.S. government civilian executives.

In 1981, Sayre ended his active duty status when he joined the Nevada National Guard. At the same time, he accepted an entry-level job with the Investigations Division of the State Gaming Control Board (GCB). Sayre, his wife (Joell) and his son (Jackson) currently reside in Carson City.

A Superior Work Ethic
Whatever the task, either in the military or for the GCB, Sayre has always had the same approach. Sayre’s focused work ethic facilitated his rise in the ranks. “The fear of failure drove me a bit harder in both career tracks,” he says.

After joining the GCB, Sayre assumed many roles to enhance his internal resume. He worked in the Corporate Securities Division, which directed the pre-licensing and monitoring of publicly traded registrants and licensees. Sayre then served as management services officer for the Administration Division, overseeing agency personnel policy, training, internal investigations, budgeting and the administrative hearings process.

In June 1990, Sayre was promoted to chief of the Investigations Division. He managed global operations from offices in Carson City and Las Vegas. Upon reaching seven years in office in 1997, Sayre become the longest serving chief. He remained until his January 2007 appointment to the State Gaming Control Board.

Recruiting the Best
No matter the job, Sayre has always expected professional behavior and institutional loyalty, coupled with a goal of getting it right without compromising standards. “I believe in teamwork, and I am unimpressed with those taking credit without recognizing every contributor,” he says.

Sayre also emphasizes the big picture: “I firmly advocate institutional values. Whether one works for a governmental entity, business or is self-employed, the business card must represent something besides oneself. My relationship with the board and the military goes beyond just making a living. Both careers required passion to continually perform at a high standard.”

Each GCB division’s unique missions and goals require individuals with varied qualifications. As chief of investigations, Sayre’s 80 employees comprised the most diverse education and experience of any of the divisions. “They are not police; they are investigators with an extensive investigative background,” he explains. “Their most useful trait is probably professional skepticism.”

Sayre directed the personal and corporate background investigations of all individuals in privately held companies seeking a gaming license. His department then presented its findings to the GCB and the Nevada Gaming Commission. Only the facts mattered. Sayre states, “I prohibited opinionated investigation reports and rejected unverifiable intelligence. Investigations thoroughly examined the applicant’s personal and financial history. I also initiated a specialized team to oversee the activities of marketing department personnel, plus those independent agents contracted with Nevada licensees.”

Nevada’s regulatory system has vast authority over three “lanes.” These are re-licensing, wherein proof of suitability rests with the applicant; regulatory, which places the burden of proof on the state; and criminal, which blends state and federal protections. Sayre says, “No federal lettered agency is off limits in engaging in the cooperative investigative and prosecutorial effort.”

Renowned Nevada gaming attorney Robert Faiss of Lionel Sawyer & Collins, who has represented license applicants, affirms Sayre’s solid credentials. Faiss has known Sayre since his early days with the Gaming Control Board. “Randy has treated gaming as a valuable and responsible industry requiring fair regulation… not an evil to be suppressed,” Faiss says. “Nevada gaming license applicants have a greater vulnerability than in most other states. They and their attorneys lack access to the investigative reports which are the basis of licensing decisions. As chief, Randy made sure that his approvals for those investigative reports were balanced and fair. An applicant’s counsel knew of any problems in advance of hearings.”

Sayre’s Role as a Board Member
Sayre’s career has taken a different route than traditional law enforcement. However, his familiarity with the criminal justice system has provided a solid foundation for his role supervising the Enforcement Division. His staff consists of 91 sworn officers and 31 classified employees.

GCB Chairman Dennis Neilander lauds Sayre’s job qualifications. Neilander says: “As a regulator and board member, Randy is a tremendous asset to the board and the state. He brings a wealth of institutional knowledge from his many years as chief of the Investigations Division, one of the board’s most important positions. Randy also has a genuine affection for the state of Nevada.”

The Investigations Division is statutorily defined as peace officers who carry appropriate credentials and engage in domestic and international investigations. Enforcement focuses its investigative efforts on day-to-day casino operations. While their focus is casino operations, these officers have full police authority to make arrests.

“A renewed emphasis on our regulatory influence has greatly increased the use of our authorities. A broader perspective means aggressive training has enhanced division oversight effectiveness. Marrying the capabilities of Investigations and Enforcement offers a wider view of local and international conduct,” Sayre says.

Sayre’s job responsibilities constantly change. “The biggest challenge is probably keeping pace with the migration of technology, a major component of regulation. Whether collecting taxes, analyzing documents and computers for pre-licensing investigations, or a myriad of other issues, today’s technology impacts every division,” he says.

The board’s lab engineers work on multiple activities, from device analysis through approval, and subsequently, a forensics analysis and audits to confront operational problems. As gaming has moved away from a cash-based system, the GCB will contract subject matter experts as needed. The lab works directly with manufacturers’ engineering departments, cooperating to protect proprietary trade secrets.

As public figures, the GCB conducts open monthly meetings. It offers licensing recommendations and prosecutes regulatory violations to the commission. The board also promulgates regulations for adoption by the commission. These activities, plus high-profile disciplinary action, promote public and media involvement.

Sayre believes in regulations only when necessary. Faiss says Sayre’s methods have strictly regulated gaming but also protected and assisted in meaningful ways. “Although Randy has been a relentless regulator, he has also learned about gaming control from the licensee’s viewpoint,” Faiss says. “He seeks to restructure gaming control to make it more realistic.”

For example, Sayre revised regulations governing private gaming salons. “The board cautiously attempted to guarantee the regulation of this new ‘gaming salon product,’” he explains. “I pushed to change what I considered overly restrictive regulation. It relaxed industry regulatory strain, and we maintained regulatory control.”

Sayre is also concerned with the race and sports book industry. Four states have legalized sports wagering, but only Nevada offers traditional team-on-team sports wagers. For Sayre, sustaining an airtight regulatory system will avoid federal intervention.

Making a Difference
At the helm of the Enforcement Division, Sayre has introduced tangible preemptive steps. These have helped to avoid problems by streamlining public communications.

Faiss praises Sayre’s progressive approach, as he has initiated information seminars for licensees and their attorneys. “Randy has reviewed trouble spots in gaming operations,” Faiss says. “His advice on licensee compliance has helped operators avoid disciplinary actions. Randy has answered any question raised by licensees, unless it beached confidentiality.”
 
Despite the challenges, Sayre enjoys the ever-changing job description. “Every day is unique. I assist on one hand and hold responsible on the other. I inform, train and educate while having the courage to discipline when warranted. That constant change of issues requires that I be on my ‘A-game’ at all times. It is most rewarding,” he says.

However, some days prove difficult. “My biggest frustration is being held responsible for others’ bad decisions,” Sayre says. “The industry pays employees high salaries to read and interpret the same regulations I do. Disciplinary action may have been avoided if the licensee had just followed the rules. Violators are notified by phone, letter or formal disciplinary process.”

In this era of large corporate casino operations, third-party retailers often conduct leased businesses. Occasionally, that outside contractor fails to comply with regulations, affecting customer welfare. As a preventive measure, Sayre recently held the first board-sponsored “informational seminar.” It offered instruction to gaming licensees about public safety regulations and law enforcement, which would help them avoid shut-downs or costly fines. Sayre stressed his concern about the safety, health and welfare of the 40 million annual visitors.

Looking ahead, Nevada no longer has a gaming monopoly. Global competition has forever altered gaming. Whatever happens, Sayre promises the GCB will responsibly react.

A Man of Service and Honor
While holding a prominent position with the GCB for 25 years, Sayre also accumulated more command time than most other officers in Nevada. He relinquished battalion command when accepting the deputy chief of staff for maintenance in 1996, taking responsibility for statewide ground and air maintenance programs.

From mid-1997 through early 2003, Sayre was deputy commander of the Nevada National Guard, overseeing unit operations and 2,200 soldiers. After Sept. 11, 2001, Sayre was actively engaged in homeland security and counterterrorism operations.

He achieved the rank of brigadier general for the Nevada Military Department in 2006. Now retired, Sayre maintains deep emotional ties with the troops, feeling each war casualty as a personal loss.

Whether serving the needs of his state or his country, Randall Sayre has exemplified the spirit of commitment, hard work and dedication, whatever the “mission.”

Click here to read the entire Fall 2009 Issue of Casino Lawyer.