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This entry was published on 2018-06-22
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SECTION 189
Restrictions upon conduct of games of chance
General Municipal (GMU) CHAPTER 24, ARTICLE 9-A
§ 189. Restrictions upon conduct of games of chance. The conduct of
games of chance authorized by local law or ordinance shall be subject to
the following restrictions irrespective of whether the restrictions are
contained in such local law or ordinance, but nothing herein shall be
construed to prevent the inclusion within such local law or ordinance of
other provisions imposing additional restrictions upon the conduct of
such games:

1. No person, firm, partnership, corporation or organization, other
than a licensee under the provisions of section one hundred ninety-one
of this article, shall conduct such game or shall lease or otherwise
make available for conducting games of chance premises for any
consideration whatsoever, direct or indirect.

2. No game of chance shall be held, operated or conducted on or within
any leased premises if rental under such lease is to be paid, wholly or
partly, on the basis of a percentage of the receipts or net profits
derived from the operation of such game.

3. No authorized organization licensed under the provisions of this
article shall purchase, lease, or receive any supplies or equipment
specifically designed or adapted for use in the conduct of games of
chance from other than a supplier licensed by the board or from another
authorized organization. Lease terms and conditions shall be subject to
rules and regulations promulgated by the board. The provisions of this
article shall not be construed to authorize or permit an authorized
organization to engage in the business of leasing games of chance,
supplies, or equipment. Furthermore, no organization shall purchase bell
jar tickets, or deals of bell jar tickets from any other person or
organization other than those specifically authorized under sections one
hundred ninety-five-n and one hundred ninety-five-o of this article.

4. The entire net proceeds of any game of chance shall be exclusively
devoted to the lawful purposes of the organization permitted to conduct
the same and the net proceeds of any rental derived therefrom shall be
exclusively devoted to the lawful purposes of the authorized games of
chance lessor.

5. (a) No single prize awarded by games of chance other than raffle
shall exceed the sum or value of three hundred dollars, except that for
merchandise wheels, no single prize shall exceed the sum or value of two
hundred fifty dollars, and for bell jar, no single prize shall exceed
the sum or value of one thousand dollars.

(b) No single prize awarded by raffle shall exceed the sum or value of
three hundred thousand dollars.

(c) No single wager shall exceed six dollars and for bell jars, coin
boards or merchandise boards, no single prize shall exceed one thousand
dollars, provided, however, that such limitation shall not apply to the
amount of money or value paid by the participant in a raffle in return
for a ticket or other receipt.

(d) For coin boards and merchandise boards, the value of a prize shall
be determined by the cost of such prize to the authorized organization
or, if donated, the fair market value of such prize.

6. (a) No authorized organization shall award a series of prizes
consisting of cash or of merchandise with an aggregate value in excess
of:

(1) ten thousand dollars during the successive operations of any one
merchandise wheel; and

(2) six thousand dollars during the successive operations of any bell
jar, coin board or merchandise board.

(b) No series of prizes awarded by raffle shall have an aggregate
value in excess of five hundred thousand dollars.

(c) For coin boards and merchandise boards, the value of a prize shall
be determined by the cost of such prize to the authorized organization
or, if donated, the fair market value of such prize.

7. In addition to merchandise wheels, raffles and bell jars, no more
than five other single types of games of chance shall be conducted
during any one license period.

8. Except for merchandise wheels and raffles, no series of prizes on
any one occasion shall aggregate more than four hundred dollars when the
licensed authorized organization conducts five single types of games of
chance during any one license period. Except for merchandise wheels,
raffles and bell jars, no series of prizes on any one occasion shall
aggregate more than five hundred dollars when the licensed authorized
organization conducts less than five single types of games of chance,
exclusive of merchandise wheels, raffles and bell jars, during any one
license period. No authorized organization shall award by raffle prizes
with an aggregate value in excess of three million dollars during any
one license period.

9. Except for the limitations on the sum or value for single prizes
and series of prizes, no limit shall be imposed on the sum or value of
prizes awarded to any one participant during any occasion or any license
period.

10. No person except a bona fide member of the licensed authorized
organization shall participate in the management of such games; no
person except a bona fide member of the licensed authorized
organization, its auxiliary or affiliated organization, shall
participate in the operation of such game, as set forth in section one
hundred ninety-five-c of this article.

11. No person shall receive any remuneration for participating in the
management or operation of any such game.

12. No authorized organization shall extend credit to a person to
participate in playing a game of chance.

13. (a) No game of chance, other than a raffle that complies with
paragraph (b) of this subdivision, shall be conducted on other than the
premises of an authorized organization or an authorized games of chance
lessor.

(b) Raffle tickets may be sold to the public, and a raffle drawing may
occur, outside the premises of an authorized organization or an
authorized games of chance lessor if such sales occur, or such drawing
occurs, in a municipality that:

(1) has passed a local law, ordinance or resolution in accordance with
sections one hundred eighty-seven and one hundred eighty-eight of this
article approving the conduct of games of chance;

(2) is located in the county in which the municipality issuing the
raffle license is located or in a county that is contiguous to the
county in which the municipality issuing the raffle license is located;

(3) has not objected to such sales after the gaming commission gives
notice to such municipality of an authorized organization's request to
sell such raffle tickets in such municipality; and

(4) has not objected to the location in such municipality that such
drawing is proposed to occur, after the commission gives notice to such
municipality of an authorized organization's request to conduct such
drawing in such municipality. A location of a drawing may be on
state-owned property so long as the authorized organization conducting
the raffle obtains all required authorizations to do so and complies
with this paragraph.

(c) The gaming commission may by regulation prescribe the advance
notice an authorized organization must provide to the gaming commission
in order to take advantage of the provisions of paragraph (b) of this
subdivision, forms in which such a request shall be made and the time
period in which a municipality must communicate an objection to the
gaming commission.

(d) No sale of raffle tickets shall be made more than one hundred
eighty days prior to the date scheduled for the occasion at which the
raffle will be conducted.

(e) The winner of any single prize in a raffle shall not be required
to be present at the time such raffle is conducted.

13-a. No person licensed to manufacture, distribute, or sell games of
chance supplies or equipment, or their agents, shall conduct,
participate in, or assist in the conduct of games of chance. Nothing
herein shall prohibit a licensed distributor from selling, offering for
sale, or explaining a product to an authorized organization or
installing or servicing games of chance equipment upon the premises of
games of chance licensees.

14. The unauthorized conduct of a game of chance shall constitute and
be punishable as a misdemeanor.

15. No coins or merchandise from a coin board or merchandise board
shall be redeemable or convertible into cash directly or indirectly by
the authorized organization.

16. Notwithstanding any provision of law to the contrary, games known
as "raffles", at the discretion of the games of chance licensee, may be
purchased via the internet or mobile application with a debit or credit
card, upon the account holder's direct consent, provided, however, that
the gaming commission shall promulgate any necessary rules and
regulations to ensure, to a reasonable degree of certainty that:

(a) the purchase of the raffle ticket is initiated and received or
otherwise made in accordance with subdivision thirteen of this section;

(b) purchasers are not less than eighteen years of age; and

(c) the privacy and online security of participants is protected.