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New York Consolidated Laws, General Municipal Law - GMU § 189. Restrictions upon conduct of games of chance

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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.

Cite this article: FindLaw.com - New York Consolidated Laws, General Municipal Law - GMU § 189. Restrictions upon conduct of games of chance - last updated January 01, 2021 | https://codes.findlaw.com/ny/general-municipal-law/gmu-sect-189.html


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