Legislation

§ 195-c. Persons operating games; equipment; expenses; compensation.
1. No person shall operate any game of chance under any license issued
under this article except a bona fide member of the authorized
organization to which the license is issued, or a bona fide member of an
organization or association which is an auxiliary to the licensee or a
bona fide member of an organization or association of which such
licensee is an auxiliary or a bona fide member of an organization or
association which is affiliated with the licensee by being, with it,
auxiliary to another organization or association. Nothing herein shall
be construed to limit the number of games of chance licensees for whom
such persons may operate games of chance nor to prevent non-members from
assisting the licensee in any activity other than managing or operating
games. No game of chance shall be conducted with any equipment except
such as shall be owned or leased by the authorized organization so
licensed or used without payment of any compensation therefor by the
licensee. However, in no event shall bell jar tickets be transferred
from one authorized organization to another, with or without payment of
any compensation thereof. The head or heads of the authorized
organization shall upon request certify, under oath, that the persons
operating any game of chance are bona fide members of such authorized
organization, auxiliary or affiliated organization. Upon request by an
officer or the department any such person involved in such games of
chance shall certify that they have no criminal record. No items of
expense shall be incurred or paid in connection with the conducting of
any game of chance pursuant to any license issued under this article
except those that are reasonable and are necessarily expended for games
of chance supplies and equipment, prizes, security personnel, stated
rental if any, bookkeeping or accounting services according to a
schedule of compensation prescribed by the commission, janitorial
services and utility supplies if any, and license fees, and the cost of
bus transportation, if authorized by such clerk or department. No
commission, salary, compensation, reward or recompense shall be paid or
given to any person for the sale or assisting with the sale of raffle
tickets.

2. For the purpose of the sale of tickets for the game of raffle, the
term "operate" shall not include the sale of such tickets by persons of
lineal or collateral consanguinity to members of an authorized
organization licensed to conduct a raffle.

3. Each electronic bell jar vending machine that has been approved by
the commission pursuant to paragraph (b) of subdivision nine of section
one hundred eighty-eight-a of this article shall do the following:

(a) read a barcode or similar form of encryption or marking on the
pre-printed bell jar ticket;

(b) reveal results;

(c) verify if a bell jar ticket is redeemable for a prize;

(d) electronically aggregate winning prizes for continued play;

(e) produce a voucher for prize redemption or proof of purchase;

(f) track the sales of tickets and any other information as required
by the commission and report such sales and other information to the
commission;

(g) prohibit spinning reels or other representations or audiovisual
features that mimic a video lottery terminal or slot machine;

(h) prohibit any electronic user interface that mimics a video slot
machine;

(i) prohibit free plays, bonus games, multipliers, jackpots; provided,
however, that for purposes of this paragraph, the prohibition on
"jackpots" shall not include prizes that may be won on the bell jar
ticket itself, subject to limitations set forth in regulations
promulgated by the commission, discounts, promotions, special offers, or
similar incentives to initiate or prolong player engagement;

(j) prohibit any feature that simulates skill or allows player input
to influence the outcome of a predetermined result;

(k) prohibit the display of near-miss outcomes that may mislead a
player into believing a win was narrowly missed; and

(l) limit the speed of play to prevent rapid successive wagering as
required by regulations promulgated by the commission.

4. The following information shall be displayed by each electronic
bell jar vending machine:

(a) the total number of tickets in each deal;

(b) the price of each ticket;

(c) the number and amount of prizes in each deal;

(d) the number of winners per ticket and its respective winning
numbers or symbols;

(e) the name of the game;

(f) the name or logo of the manufacturer of the tickets and the
electronic bell jar vending machine;

(g) the compulsive gambling hotline telephone number for the state of
New York; and

(h) notification that only individuals eighteen years of age or older
may use an electronic bell jar vending machine.

5. If a voucher is produced by an electronic bell jar vending machine
for prize redemption, the following information shall appear on such
voucher:

(a) the aggregate prize amount payable to the player;

(b) the device number or other identification method for the vending
machine that produced such voucher;

(c) the date and time that such voucher was printed;

(d) the sequential number or other identification method of such
voucher;

(e) an identification number, barcode or similar form of encryption
that may be used to validate the prize amount payable to the player; and

(f) the period of time during which unused tickets or prize amounts
must be claimed.

6. (a) For the purposes of this subdivision, the following terms shall
have the following meanings:

(i) "Active local member" shall mean an individual who participates in
the activities of an authorized organization and resides within the
county where the authorized organization is located or an adjoining
county, as defined by rules promulgated by the commission.

(ii) "Existing authorized organization" shall mean an authorized
organization that was licensed to conduct games of chance prior to the
effective date of this subdivision.

(iii) "New authorized organization" shall mean an authorized
organization that is first licensed to conduct games of chance on or
after the effective date of this subdivision.

(iv) "Gaming facility" shall mean any commercial casino, video lottery
terminal facility, or tribal gaming facility operating pursuant to state
or federal law. Locations of such facilities shall be those identified
by the commission.

(b) The maximum number of electronic bell jar vending machines that an
existing authorized organization may operate shall be determined based
upon the number of its active local members, as follows:

(i) An existing authorized organization with fewer than fifty active
local members may operate a maximum number of one electronic bell jar
vending machine;

(ii) An existing authorized organization with fifty or more but fewer
than one hundred active local members may operate a maximum of two
electronic bell jar vending machines;

(iii) An existing authorized organization with one hundred or more
active local members but fewer than two hundred active local members may
operate a maximum of three electronic bell jar vending machines;

(iv) An existing authorized organization with two hundred or more but
fewer than three hundred active local members may operate a maximum of
four electronic bell jar vending machines; and

(v) An existing authorized organization with three hundred or more
active local members may operate a maximum of five electronic bell jar
vending machines.

(c) A new authorized organization may operate a maximum of one
electronic bell jar vending machine.

(d) (i) For any authorized organization at a premises located within
fifteen miles of any gaming facility, the maximum number of electronic
bell jar vending machines that may be operated shall be one,
notwithstanding the provisions of paragraph (b) of this subdivision;
provided however, that this limitation shall not apply to gaming
facilities located within cities with a population of one million or
more as of the latest federal decennial census.

(ii) For any authorized organization at a premises located more than
fifteen miles but not more than twenty-five miles from any gaming
facility, the maximum number of electronic bell jar vending machines
that may be operated shall be three, notwithstanding the provisions of
paragraph (b) of this subdivision.

(iii) In cities with a population of one million or more as of the
latest federal decennial census, the following geographic considerations
shall apply, notwithstanding any other provision of this paragraph or
paragraph (b) of this subdivision:

For any authorized organization at a premises located within two
thousand five hundred feet of any gaming facility, the maximum number of
electronic bell jar vending machines that may be operated shall be one.
The commission shall establish procedures for measuring such distance.
For any authorized organization at a premises located more than two
thousand five hundred feet but not more than one mile from any gaming
facility, the maximum number of electronic bell jar vending machines
that may be operated shall be one for new authorized organizations. For
existing authorized organizations within this zone, the maximum number
of electronic bell jar vending machines shall be two, provided that the
commission, in authorizing such machines, considers local market
conditions and the objectives of preventing market oversaturation. For
any authorized organization at a premises located more than one mile
from any gaming facility, the maximum number of electronic bell jar
vending machines shall be determined in accordance with paragraphs (b)
and (c) of this subdivision, provided that the commission shall retain
the discretion to impose stricter limitations based on local density of
authorized organizations operating such machines, potential impact on
existing gaming facilities, and other local market conditions specific
to such city, consistent with the objectives set forth in paragraph (e)
of this subdivision. The commission shall, by rule or regulation,
further define the methodology for assessing local density and market
conditions within such cities and may establish specific zones or areas
where the placement of electronic bell jar vending machines is further
limited or requires enhanced review, to ensure the responsible
integration of such charitable gaming opportunities.

(iv) The commission shall have the authority to establish, by rule or
regulation, specific proximity zones around gaming facilities and to
modify the limitations provided in subparagraphs (i), (ii), and (iii) of
this paragraph based upon local market conditions, potential impact on
existing gaming facilities, and the need to prevent loss of employment
at such facilities, provided that any such modification shall be
consistent with the objective of supporting charitable fundraising while
maintaining the existing gaming landscape and preventing market
oversaturation; provided however, that any such modification shall
constitute only a reduction of the thresholds established by this
subdivision.

(e) (i) Notwithstanding any other provision of this subdivision, the
commission shall have the discretion to determine the number of
electronic bell jar vending machines that may be operated by any
authorized organization, and the location of such machines; provided
however, that such number of machines shall not exceed the limits
established in this subdivision. Such discretion shall be exercised to
ensure that the introduction and operation of electronic bell jar
vending machines occurs exclusively to the fundraising capabilities of
legitimate charitable organizations while maintaining the stability of
existing regulated gaming sectors and revenue to the state, and avoiding
any loss of employment at existing gaming facilities.

(ii) The commission may require periodic reporting or verification of
active local membership to ensure ongoing compliance with eligibility
requirements and may take enforcement action in cases of material
misrepresentation or sustained noncompliance. The commission may also
take into consideration reasonable and periodic fluctuations in
membership to avoid requiring the removal or retirement of electronic
bell jar vending machines due to temporary or minimal decreases in
membership.

(iii) The commission shall deny, revoke, or limit the number of
electronic bell jar vending machines an authorized organization may
operate if it determines that such organization has been established,
structured, or is being utilized, directly or indirectly, to obtain a
greater number of machines than otherwise would be permitted. This
includes, but is not limited to, the creation of subsidiary entities,
shell organizations, or any other arrangement where the facts and
circumstances indicate an intent to circumvent the limitations set forth
in this subdivision. The commission is empowered to scrutinize the
governance, operational control, and financial interdependence of
organizations to make such determinations.

(iv) The co-siting or joint housing of multiple authorized
organizations at a single premises or contiguous premises for the
primary purpose of increasing the aggregate number of electronic bell
jar vending machines at such location beyond what would otherwise be
permitted for a single authorized organization operating at such
premises is prohibited, unless explicitly authorized by the commission
upon a finding that such arrangement is consistent with the public
interest and the objectives of this article. The commission shall
promulgate rules and regulations to effectuate this provision,
considering factors such as shared operational control, membership
overlap, and the primary purpose of the co-siting arrangement.

7. The commission shall promulgate such rules and regulations as may
be necessary for the implementation of electronic bell jar vending
machine gaming in accordance with the provisions of this section,
including but not limited to the verification of active local membership
numbers and assessment of proximity to gaming facilities.