Section 20-950
§ 20-950 Definitions. For the purposes of this chapter, the following
terms shall have the following meanings:
a. "Affiliate" shall mean (i) a business entity in which twenty-five
percent or more is owned, or is subject to a power or right of control
or a power to vote, or is managed by, a shipboard gambling business, or
(ii) a business entity that owns twenty-five percent or more of a
shipboard gambling business, or that exercises a power or right of
control or a power to vote over twenty-five percent or more of a
shipboard gambling business, or that manages a shipboard gambling
business.
b. "Applicant" shall mean, if a business entity submitting an
application for a license pursuant to this chapter, the entity and each
principal thereof; if an individual submitting an application for a
license, certificate of approval or registration pursuant to this
chapter, such individual.
c. "Business entity" shall mean a corporation, partnership, limited
liability company, individual or sole proprietorship.
d. "Certificate of approval" shall mean a certificate issued by the
commission pursuant to the provisions of this chapter approving the
employment in a shipboard gambling business of a gambling employee or
agent.
e. "Commission" shall mean the New York city gambling control
commission established pursuant to section 20-951 of this chapter.
f. "Gambling" shall mean any contest, game, gaming scheme or other
activity in which a person stakes or risks something of value upon the
outcome of a contest involving an element of chance or a future
contingent event not under his or her control or influence, upon the
understanding that he or she will receive something of value in the
event of a certain outcome.
g. "Gambling device" shall mean a slot machine or any other machine or
mechanical device which when operated may deliver or entitle a person to
receive, as the result of the application of an element of chance, any
money or property.
h. "Gambling employee or agent" shall mean a person employed in a
shipboard gambling business who is not a key employee or agent and whose
duties include (i) the conduct, operation or facilitation of gambling,
whether or not involving the use of a gambling device; or (ii) the
repair or maintenance of a gambling device. "Gambling employee or agent"
shall include, but not be limited to, boxmen, dealers or croupiers,
floormen, gambling machine mechanics, casino security personnel, count
room personnel, cage personnel, slot machine and slot booth personnel,
collection personnel, casino surveillance personnel and data processing
personnel. "Gambling employee or agent" may also include any other
category of persons identified by rule of the commission whose duties
require regular presence in the area or areas of a vessel in which
gambling takes place or for whom the commission determines a certificate
of approval is appropriate and necessary to effectuate the purposes of
this chapter. The job categories specified in such rule shall not
include categories of employees, without limitation, such as kitchen
personnel, food and beverage servers or vessel's crew, that are not
involved in gambling operations.
i. "Key employee or agents" shall mean a person employed in a
shipboard gambling business in a supervisory or managerial capacity or
empowered to make discretionary decisions regarding such business,
including, but not limited to, pit bosses, shift bosses, credit
executives, casino cashier supervisors, casino facility managers and
assistant managers and managers or supervisors of gambling employees or
agents. Key employees shall also include any other category of persons
identified by rule of the commission for which the commission determines
licensure as a key employee is appropriate and necessary to effectuate
the purposes of this chapter.
j. "License" shall mean a shipboard gambling license, a key employee
license or a key vendor license issued by the commission pursuant to the
provisions of this chapter.
k. "Parent business" or "parent business entity" shall mean a business
entity that owns fifty percent or more of another business entity, or
that has a power or right of control or power to vote over fifty percent
or more of such business entity, or that manages such other business
entity.
I. "Principal" shall mean, of a sole proprietorship, the proprietor;
of a corporation, every officer and director and every stockholder
holding ten percent or more of the outstanding shares of the
corporation; of a partnership, all the partners; if another type of
business entity, the chief operating officer or chief executive officer,
irrespective of organizational title, and all persons or entities having
an ownership interest of ten percent or more. Where a partner or
stockholder holding ten percent or more of the outstanding shares of a
corporation is itself a partnership or a corporation, the term
"principal" shall also include the partners of such partnership or the
officers, directors and stockholders holding the equivalent of ten
percent or more ownership interest of the applicant business. For the
purposes of this chapter: (1) an individual shall be considered to hold
stock in a corporation where such individual participates in the
operation of or has a beneficial interest in such corporation and such
stock is owned directly or indirectly by or for (i) such individual,
(ii) the spouse or domestic partner of such individual (other than a
spouse who is legally separated from such individual pursuant to a
judicial decree or an agreement cognizable under the laws of the state
in which such individual is domiciled), (iii) the children,
grandchildren and parents of such individual or (iv) a corporation in
which any of such individual, the spouse, domestic partner, children,
grandchildren or parents of such individual in the aggregate own fifty
percent or more in value of the stock of such corporation; (2) a
partnership shall be considered to hold stock in a corporation where
such stock is owned, directly or indirectly, by or for a partner in such
partnership; and (3) a corporation shall be considered to hold stock in
a corporation that is an applicant as defined in this section where such
corporation holds fifty percent or more in value of the stock of a third
corporation that holds stock in the applicant corporation.
Notwithstanding any other provision of this subdivision, where there is
reasonable cause to believe that any owner, officer or director of a
business entity with an interest in an applicant business not otherwise
within the scope of this subdivision lacks good character, honesty and
integrity, the commission may designate such person as a principal for
the purposes of sections 20-954, 20-955, 20-956 and 20-959 of this
chapter.
m. "Registrant" shall mean a service employee or agent or an auxiliary
vendor who has registered with the commission pursuant to the provisions
of this chapter.
n. "Service employee or agent" shall mean a person employed in a
shipboard gambling business who is not a key employee or agent or a
gambling employee or agent.
o. "Shipboard gambling business" shall mean a business in which
passengers are transported for the purpose of participating in gambling
outside the territorial waters of the United States from a location
within New York city and returned to a location within such city;
provided that a business shall not be deemed a shipboard gambling
business for purposes of this chapter where the gambling cruises or the
gambling activities aboard such cruises operated by or on behalf of such
business are conducted or proposed to be conducted no more than two
times a year or every cruise operated by such business during which
gambling activities occur is of at least seventy-two hours duration or
where the commission determines, in its discretion, that the gambling
offered aboard a vessel owned or operated by such business does not
constitute a primary activity conducted aboard such vessel. In reaching
a determination that gambling does not constitute a primary activity,
the commission shall consider, without limitation, factors including:
the passenger capacity of the vessel in relation to the number of gaming
positions in the areas in which gambling will occur; the percentage of
space devoted to public accommodation in which gambling will occur; the
number of hours during which gambling will take place in relation to the
total time of the cruise; and the nature of the advertising and other
customer solicitation engaged in by the business.
p. "Subsidiary" shall mean any business that is managed by another
business entity or any business in which fifty percent or more of the
business is owned or in which fifty percent or more of the business is
subject to a power or right of control or held with power to vote by
another business entity.
q. "Vendor" shall mean any business, except for a business the primary
function of which is to provide legal or accounting services or that is
required to register as a lobbyist pursuant to section 3-213 of the code
or pursuant to the New York state lobbying act (enacted by chapter 1040
of the laws of 1981, as amended) that provides a shipboard gambling
business with goods or services used in the operation of such business.
"Key vendor" shall mean a vendor, in a category identified by rule of
the commission, that furnishes goods or services related to the security
operations, gambling operations, gambling equipment, the hiring,
supervision or training of gambling employees or agents, the provision
of alcoholic beverages, and the provision of food or food services the
cost of which exceeds an amount to be set forth by rule of the
commission. "Auxiliary vendor" shall mean a vendor, other than a key
vendor, that furnishes goods or services to a shipboard gambling
business, the cost of which goods or services exceeds an amount to be
established for each category of such vendor by rule of the commission,
related to maintenance of a vessel or facilities or equipment aboard a
vessel, food or non-alcoholic beverages, entertainment or such other
activity for which the commission determines by rule that registration
is necessary or appropriate to effectuate the provisions of this
chapter, provided that the commission may by rule determine that
registration of a specific category of auxiliary vendor is unnecessary
to achieve the purposes of this chapter. The commission shall by rule
list the categories of goods and services and/or the amount of sales of
such goods and services that do not require obtaining a key vendor
license or an auxiliary vendor registration and may also, in its
discretion, waive a requirement for a key vendor license or auxiliary
vendor registration upon a determination that such license or
registration is unnecessary to achieve the purposes of this chapter. In
addition, the commission shall establish, by rule, a procedure whereby a
shipboard gambling business may obtain temporary permission, on an
expedited basis, to purchase goods or services from an unlicensed or
unregistered vendor in a situation where such purchase is necessary to
the operation of such business. The commission shall make provision for
the issuance of licenses pursuant to sections 20-954 and 20-956 of this
chapter to key vendors who furnish goods or services to shipboard
gambling licensees and for the registration pursuant to section 20-955
of auxiliary vendors who furnish goods or services to shipboard gambling
licensees. The commission shall maintain a list of all licensed and
registered vendors and those vendors to whom a waiver has been granted
and shall make such list available upon request.
Section 20-951
§ 20-951 New York city gambling control commission. a. There is hereby
created a New York city gambling control commission. Such commission
shall consist of five members appointed by the mayor, two of whom shall
be appointed after recommendation by the city council. The mayor shall
appoint a chair from among the members of the commission. Each member of
the commission shall be appointed for a two year term.
b. In the event of a vacancy on the commission during the term of
office of a member, a successor shall be chosen in the same manner as
the original appointment. A member appointed to fill a vacancy shall
serve for the balance of the unexpired term.
c. The members of the commission shall be compensated on a per diem
basis, provided, however, that a member who holds other city office or
employment shall receive only the compensation for such office or
employment. The chair shall have charge of the organization of the
commission and shall have authority to employ, assign and superintend
the duties of such officers and employees as may be necessary to carry
out the provisions of this chapter.
Section 20-952
§ 20-952 Power and duties of the commission. The commission shall be
responsible for the licensing and regulation of shipboard gambling
businesses. The powers and duties of the commission shall include, but
not be limited to the following:
a. To issue and establish standards for the issuance, renewal,
suspension and revocation of licenses, certificates of approval and
registrations and waivers therefrom pursuant to this chapter; provided
that the commission may by resolution delegate to the chair the
authority to make individual determinations regarding the issuance,
renewal, suspension and revocation of such licenses, certificates of
approval and registrations and the appointment of independent auditors
in accordance with the provisions of this chapter, except that a
determination to refuse to issue a license, renewal, certificate of
approval or registration or to refuse to grant a waiver therefrom
pursuant to this chapter shall be made only by a majority vote of the
commission.
b. To investigate any matter within the jurisdiction conferred by this
chapter, including, but not limited to, any matter that relates to the
good character, honesty and integrity of any owner, officer or director
of an applicant business entity, or affiliate or subsidiary thereof,
irrespective of whether such person is a principal of such business as
defined in subdivision 1 of section 20-950 of this chapter, and to have
full power to compel the attendance, examine and take testimony under
oath of such persons as it may deem necessary in relation to such
investigation, and to require the production of books, accounts, papers
and other documents and materials relevant to such investigation.
c. To appoint, within the appropriations available therefor, such
employees as may be required for the performance of the duties
prescribed herein. In addition to such employees, the commission may
request that the commissioner of any other appropriate city agency
provide staff and other assistance to the commission in conducting
background investigations for licenses, certificates of approval and
registrations pursuant to this chapter in order that such work may be
performed efficiently, within existing city resources.
d. To conduct studies or investigations into matters related to
gambling in the city and other jurisdictions in order to assist the city
in formulating policies relating to the regulation of shipboard
gambling.
e. To establish standards for the conduct of shipboard gambling
businesses.
f. To set forth requirements necessary to protect the public health,
safety and welfare, including but not limited to requirements for the
provision of security for patrons on shipboard or on the pier or
adjacent area in coordination with appropriate law enforcement
authorities, and other measures to provide for the welfare of patrons on
such piers and in such areas.
g. To establish standards to protect consumers from fraudulent and
misleading advertising and other solicitation of customers for shipboard
gambling businesses.
h. To establish fees and promulgate rules as the commission may deem
necessary and appropriate to effectuate the purposes and provisions of
this chapter.
Section 20-953
§ 20-953 Licenses, certificates of approval, and registration
required. a. Unless otherwise provided, (i) It shall be unlawful to
operate a shipboard gambling business unless such business has first
obtained a shipboard gambling license from the commission.
(ii) It shall be unlawful for a shipboard gambling licensee to employ
a key employee or agent unless such employee or agent has first obtained
a key employee license from the commission pursuant to the provisions of
this chapter.
(iii) It shall be unlawful for a shipboard gambling licensee to employ
a gambling employee or agent unless such employee or agent has first
obtained a certificate of approval from the commission pursuant to the
provisions of this chapter.
(iv) It shall be unlawful for a shipboard gambling licensee to employ
a service employee or agent unless such employee or agent has first
registered with the commission pursuant to the provisions of this
chapter.
(v) It shall be unlawful for a shipboard gambling licensee to purchase
goods or services from a key vendor or an auxiliary vendor unless such
vendor has first obtained a key vendor license or has registered with
the commission, whichever is appropriate.
b. A license, certificate of approval or registration issued pursuant
to this chapter or any rule promulgated hereunder shall not be
transferred or assigned or used by any person or entity other than the
licensee, holder of a certificate of approval or registrant to whom it
was issued.
c. A license, certificate of approval or registration issued pursuant
to this chapter shall be valid for a period of two years and shall, upon
proper application for renewal pursuant to rule of the commission
setting forth an expeditious procedure for the updating and review of
the information required to be submitted by the applicant, be renewable
for two year periods thereafter, except that the renewal period for a
shipboard gambling license shall be for one year for each of the first
two renewal periods succeeding the initial issuance of such license, and
thereafter for two years.
d. The commission shall promulgate rules establishing the fees and the
manner of payment of fees for any investigation, license, certificate of
approval or registration required by this chapter in an amount
sufficient to compensate the city for the administrative expense of
conducting investigations and issuing or renewing a license, certificate
of approval or registration and the expense of inspections and other
activities related thereto.
Section 20-954
§ 20-954 License application; application for certificate of approval.
a. An applicant for a license or certificate of approval pursuant to
this chapter shall submit an application in the form and containing the
information prescribed by the commission. An application for a license
shall be accompanied by: (i) in the case of any applicant business, a
list of the names and addresses of all principals of such business, and,
in the case of a shipboard gambling business, all key employees employed
or proposed to be employed in the business; and (ii) in the case of a
shipboard gambling business, a list of the names of all key and
auxiliary vendors and prospective and anticipated key and auxiliary
vendors and the names and job titles of all gambling and service
employees and agents, prospective gambling and service employees and
agents of the applicant business who are or who the applicant proposes
to be engaged in the operation of the shipboard gambling business; (iii)
such other information as the commission shall determine by rule will
properly identify employees and agents and prospective employees and
agents; (iv) in the case of a shipboard gambling business, a
description, accompanied by diagrams where appropriate, detailing the
provisions that will be made by the applicant for security and other
measures prescribed for the welfare of patrons by rule of the
commission; (v) in the case of a shipboard gambling business, a
description of the financial capacity and cash management system of the
shipboard gambling business demonstrating the ability of such business
to maintain and operate the business responsibly and to provide payment
to patrons; and (vi) a form signed by each applicant authorizing the
release to the city of financial and other information required by the
commission and waiving any claims against the city that might arise in
connection with the investigation of the applicant or the release of any
information resulting from such investigation to other appropriate
government officials.
b. i. An applicant for a license or a certificate of approval shall be
fingerprinted by a person designated for such purpose by the commission,
the department of investigation or the police department and pay a fee
to be submitted to the division of criminal justice services and/or the
federal bureau of investigation for the purposes of obtaining criminal
history records.
ii. An applicant for a license or a certificate of approval shall
provide to the commission, upon a form prescribed by the commission and
subject to such minimum dollar thresholds and other reporting
requirements set forth on such form, information for the purpose of
enabling the commission to determine the good character, honesty and
integrity of the applicant, including but not limited to: (a) a listing
of the names and addresses of any person having a beneficial interest in
an applicant business, and the amount and nature of such interest; (b) a
listing of the amounts in which such applicant is indebted, including
mortgages on real property, and the names and addresses of all persons
to whom such debts are owed; (c) a listing of such applicant's real
property holdings or mortgage or other interest in real property held by
such applicant other than a primary residence and the names and
addresses of all co-owners of such interest; (d) the name and address of
any business in which such applicant holds an equity or debt interest,
excluding any interest in publicly traded stocks or bonds; (e) the names
and addresses of all persons or entities from whom an applicant has
received gifts valued at more than one thousand dollars in any of the
past three years, and the name of all persons or entities excluding any
organization recognized by the Internal Revenue Service under section
501(c)(3) of the Internal Revenue Code to whom the applicant has given
such gifts in any of the past three years; (f) a listing of all criminal
convictions, in any jurisdiction, of the applicant; (g) a listing of all
pending civil or criminal actions to which the applicant knows or should
have known that he or she is a party; (h) a listing of any determination
by a federal, state or city regulatory agency of a violation by the
applicant of statutes, laws, rules or regulations relating to the
applicant's conduct where such violation has resulted in the suspension
or revocation of a permit, license or other permission required in
connection with the operation of a business or in a civil fine, penalty,
settlement or injunctive relief in excess of threshold amounts or of a
type established by the commission; (i) a listing of any criminal or
civil investigation by a federal, state, or local prosecutorial agency,
investigative agency or regulatory agency, in the five year period
preceding the application, wherein such applicant: (A) knew or should
have known that the applicant was the subject of such investigation, or
(B) has received a subpoena requiring the production of documents or
information in connection with such investigation; (j) a certification
that an applicant business has paid all federal, state, and local income
taxes related to the applicant's business for which the applicant is
responsible for the three tax years preceding the date of the
application or documentation that the applicant is contesting such taxes
in a pending judicial or administrative proceeding; (k) a listing of any
license, permit or other permission held by the applicant to engage in
any capacity in a gambling business or activity in any jurisdiction; (l)
a listing of any denials to the applicant by any jurisdiction of a
license, permit or other permission to engage in any capacity in a
gambling business or activity; and (m) such additional information
concerning the sources and nature of funding of an applicant business
and the good character, honesty and integrity of applicants that the
commission may deem appropriate and reasonable. An applicant may submit
any additional information that the applicant believes demonstrates the
applicant's good character, honesty and integrity, including a licensing
determination from another jurisdiction. Notwithstanding any provision
of this subdivision, an applicant for a certificate of approval shall
not be required to submit information described in subparagraphs (a) and
(m) of this paragraph or any other information the commission determines
is not necessary or appropriate. An applicant may also submit to the
commission any material or explanation which the applicant believes
demonstrates that any information submitted pursuant to this paragraph
does not reflect adversely upon the applicant's good character, honesty
and integrity. The commission may require that applicants pay fees to
cover the expenses of fingerprinting and background investigations
provided for in this subdivision.
iii. In the case of a shipboard gambling business, the commission may
also require that an applicant submit any or all of the information
required by this paragraph with respect to any affiliate or subsidiary
of the applicant that owns or operates a business in any jurisdiction.
iv. Notwithstanding any provision of this chapter, for purposes of
this section in the case of an applicant shipboard gambling business
that has a parent business entity: (A) fingerprinting and disclosure
under this section shall be required of any person acting for or on
behalf of the parent business who has direct management or supervisory
responsibility for the operations or performance of the applicant; (B)
the chief executive officer, chief operating officer and chief financial
officer, or any other person exercising comparable responsibilities and
functions, of any subsidiary or affiliate of such parent business entity
over which any person subject to fingerprinting and disclosure under
subparagraph (A) of this paragraph exercises similar responsibilities
shall be fingerprinted and shall submit the information required
pursuant to subparagraphs (f) and (g) of paragraph ii of this
subdivision, as well as such additional information pursuant to this
paragraph as the commission may find necessary; and (C) the listing
specified under subparagraph (i) of paragraph ii of this subdivision
shall also be provided for any subsidiary or affiliate of the parent
business entity for which fingerprinting and disclosure by principals
thereof is made pursuant to (B) of this paragraph.
v. The chief executive officer, chief operating officer and chief
financial officer, or any other person exercising comparable
responsibilities and functions, of any subsidiary or affiliate of a
shipboard gambling business shall be fingerprinted and shall submit the
information required pursuant to subparagraphs (f), (g) and (i) of
paragraph ii of this subdivision, as well as such other information
pursuant to this paragraph that the commission may find necessary.
c. A business required to be licensed pursuant to this chapter shall
inform the commission, within a reasonable time, of any changes in the
ownership composition of such business, the addition or deletion of any
principal at any time subsequent to the issuance of the license, the
arrest or criminal conviction of any principal of the business, or any
other material change in the information submitted on the application
for a license. A business required to be licensed shall provide the
commission with notice of at least ten business days of the proposed
addition of a new principal to such business. The commission may waive
or shorten such period upon a showing that there exists a bona fide
business requirement therefor. Except where the commission determines
within such period, based upon information available to it, that the
addition of such new principal may have a result inimical to the
purposes of this chapter, the licensee may add such new principal
pending the completion of review by the commission. The licensee shall
be afforded an opportunity to demonstrate to the commission that the
addition of such new principal pending completion of such review would
not have a result inimical to the purposes of this chapter. If upon the
completion of such review, the commission determines that such principal
has not demonstrated that he or she possesses good character, honesty
and integrity, the license shall cease to be valid unless such principal
divests his or her interest, or discontinues his or her involvement in
the business of such licensee, as the case may be, within a reasonable
time period prescribed by the commission.
d. Each applicant business shall provide the commission with a
business address in New York city where notices may be delivered and
legal process served and shall designate a person of suitable age and
discretion at such address who shall be an agent for service of process.
Section 20-955
§ 20-955 Registration application; application for renewal. a. An
applicant for registration or renewal pursuant to this chapter shall
submit an application on a form prescribed by the commission and
containing such information as the commission determines will adequately
identify and establish the background of such applicant. The commission
may refuse to register or to renew the registration of an applicant who
has knowingly failed to provide the information and/or documentation
required by such form, or who has knowingly provided false information
or documentation, required by this chapter or any rule promulgated
pursuant hereto.
b. Notwithstanding any other provision of this chapter: (i) the
commission may, where there is reasonable cause to believe that an
applicant has not demonstrated to the commission that he or she
possesses good character, honesty and integrity, require that such
applicant be fingerprinted and provide to the commission the information
set forth in subdivisions a and b of section 20-954 of this chapter and
may, after notice and the opportunity to be heard, refuse to register
such applicant for the reasons set forth in subdivision a of section
20-956 of this chapter; and
(ii) if at any time subsequent to registration, the commission has
reasonable cause to believe that the registrant lacks good character,
honesty and integrity, the commission may require that such registrant
be fingerprinted and provide the background information required by
subdivision b of section 20-954 of this chapter and may, after notice
and the opportunity to be heard, revoke the registration for the reasons
set forth in subdivision a of section 20-956 of this chapter.
Section 20-956
§ 20-956 Refusal to issue or renew a license or certificate of
approval. a. The commission shall refuse to issue or to renew a license
to an applicant who has not demonstrated to the commission that he or
she possesses good character, honesty and integrity. In determining that
an applicant has not met his or her burden to demonstrate good
character, honesty and integrity, the commission may consider, but is
not limited to: (i) knowing failure by such applicant to provide
truthful or complete information in connection with the application;
(ii) a pending indictment or criminal action against such applicant for
a crime which under this subdivision would provide a basis for the
refusal to issue such license or certificate of approval, or a pending
civil or administrative action to which such applicant is a party and
which directly relates to the fitness to conduct the business or perform
the work for which the license or certificate of approval is sought, in
which case the commission may defer consideration of an application
until a decision has been reached by the court or administrative
tribunal before which such action is pending; (iii) conviction of such
applicant for a crime which, considering the factors set forth in
section seven hundred fifty-three of the correction law, would provide a
basis under such law for the refusal of such license or certificate of
approval; (iv) a finding of liability in a civil or administrative
action that bears a direct relationship to the fitness of the applicant
to conduct the business or to perform the employment for which the
license or certificate of approval is sought; (v) commission of a
racketeering activity or knowing association with a person who has been
convicted for a racketeering activity when the applicant knew or should
have known of such conviction, including but not limited to the offenses
listed in subdivision one of section nineteen hundred sixty-one of the
Racketeer Influenced and Corrupt Organizations statute (18 U.S.C. § 1961
et seq.) or of an offense listed in subdivision one of section 460.10 of
the penal law, as such statutes may be amended from time to time, or the
equivalent offense under the laws of any other jurisdiction; (vi)
conviction of a gambling offense under 18 U.S.C. § 1081 et seq., 18
U.S.C. §§ 1953 through 1955, article 225 of the penal law or the
equivalent offense under the laws of any other jurisdiction; (vii)
association with any member or associate of an organized crime group as
identified by a federal, state or city law enforcement or investigative
agency when the applicant knew or should have known of the organized
crime associations of such person; (viii) in the case of an applicant
business, failure to pay any tax, fine, penalty, fee related to the
applicant's business for which liability has been admitted by the person
liable therefor, or for which judgment has been entered by a court or
administrative tribunal of competent jurisdiction and such judgment has
not been stayed; and (ix) denial of a license or other permission to
operate a gambling business or activity in another jurisdiction. For
purposes of determining the good character, honesty and integrity of
applicants for registration or registrants pursuant to section 20-955 of
this chapter, the term "applicant" as used herein shall be deemed to
apply to such applicants for registration or registrants.
b. The commission may refuse to issue or to renew a certificate of
approval to an applicant who has not demonstrated that he or she
possesses good character, honesty and integrity. In reaching such a
determination, the commission may consider, but is not limited to, the
factors set forth in paragraphs (i) through (ix) of subdivision a of
this section.
c. The commission may refuse to issue or to renew a license or
certificate of approval to an applicant who has knowingly failed to
provide the information and/or documentation required in the form
prescribed by the commission pursuant to section 20-954 of this chapter,
or who has knowingly provided false information or documentation
required by the commission pursuant to this chapter or any rules
promulgated pursuant hereto.
d. The commission may refuse to issue or to renew a license or
certificate of approval to an applicant when such applicant: (i) was
previously issued a license or certificate of approval pursuant to this
chapter and such license or certificate of approval was revoked pursuant
to the provisions of this chapter; or (ii) has been determined to have
committed any of the acts which would be a basis for the suspension or
revocation of a license or certificate of approval pursuant to this
chapter or any rules promulgated hereto.
e. The commission may refuse to issue or to renew a license pursuant
to this chapter to an applicant business where such applicant business
or any of the principals of such applicant business have been principals
of a licensee whose license has been revoked pursuant to subdivision a
of section 20-959 of this chapter.
Section 20-957
§ 20-957 Independent auditing required. a. The commission may, in the
event the background investigation conducted pursuant to section 20-954
of this chapter produces adverse information, require as a condition of
a shipboard gambling license that the licensee enter into a contract
with an independent auditor, approved or selected by the commission.
Such contract, the cost of which shall be paid by the licensee, shall
provide that the auditor investigate the activities of the licensee with
respect to the licensee's compliance with the provisions of this
chapter, other applicable federal, state and local laws and such other
matters as the commission shall determine by rule. The contract shall
provide further that the auditor report the findings of such monitoring
and investigation to the commission on a periodic basis.
b. The commission shall be authorized to prescribe, in any contract
required by the commission pursuant to this section, such reasonable
terms and conditions as the commission deems necessary to effectuate the
purposes of this chapter.
Section 20-958
§ 20-958 Investigations by the department of investigation or police
department. In addition to any other investigation authorized pursuant
to law, the commissioner of the department of investigation or the
police commissioner shall, at the request of the commission, conduct a
study or investigation of any matter arising under the provisions of
this chapter, including but not limited to investigation of the
information required to be submitted by applicants for licenses,
certificates of approval and registration and the ongoing conduct of
licensees, holders of certificates of approval and registrants.
Section 20-959
§ 20-959 Revocation or suspension of license, certificate of approval
or registration. a. In addition to the penalties provided in section
20-960 of this chapter, the commission may, after notice and opportunity
to be heard, revoke or suspend a license, certificate of approval or
registration issued pursuant to the provisions of this chapter when the
licensee or a principal, employee or agent of a licensee, a holder of a
certificate of approval or a registrant: (i) has been found to be in
violation of this chapter or any rules promulgated hereunder; (ii) has
repeatedly failed to obey the lawful orders of any person authorized to
enforce the provisions of this chapter; (iii) has failed to pay, within
the time specified by a court, the commission or an administrative
tribunal of competent jurisdiction, any fines or civil penalties imposed
pursuant to this chapter or the rules promulgated pursuant hereto; (iv)
whenever, in relation to an investigation conducted pursuant to this
chapter, the commission determines, after consideration of the factors
set forth in subdivision a of section 20-956 of this chapter, that the
licensee, holder of a certificate of approval or registrant lacks good
character, honesty and integrity or lacks the financial capacity to
maintain and operate the business responsibly in a manner that will
ensure the immediate payment to patrons; (v) whenever there has
knowingly been any false statement or any misrepresentation as to a
material fact in the application or accompanying papers upon which the
issuance of such license, certificate of approval or registration was
based; or (vi) whenever a licensee has failed to notify the commission
as required by subdivision c of section 20-954 of this chapter of any
change in the ownership interest of the business or any other material
change in the information required on the application for such license,
or of the arrest or criminal conviction of a principal of such licensee
or any of its employees or agents of which the licensee had knowledge or
should have known.
b. Notwithstanding any other provision of this chapter or rules
promulgated thereto, the commission may, upon a determination that the
operation of a shipboard gambling business or the conduct of an employee
of such business creates an imminent danger to life or property,
immediately suspend the license of such business or the certificate of
approval or registration of such employee without a prior hearing,
provided that provision shall be made for an immediate appeal of such
suspension to the chair of the commission who shall determine such
appeal forthwith. In the event that the chair upholds the suspension, an
opportunity for a hearing shall be provided on an expedited basis,
within a period not to exceed four business days and the commission
shall issue a final determination no later than four days following the
conclusion of such hearing.
Section 20-960
§ 20-960 Penalties. In addition to any other penalty provided by law:
a. Except as otherwise provided in subdivision b of this section, any
person who violates any provision of this chapter or any of the rules
promulgated thereto shall be liable for a civil penalty which shall not
exceed ten thousand dollars for each such violation. Such civil penalty
may be recovered in a civil action or may be returnable to the
department of consumer affairs or other administrative tribunal of
competent jurisdiction;
b. Any person who violates subdivision a of section 20-953 of this
chapter shall, upon conviction thereof, be punished for each violation
by a criminal fine of not more than ten thousand dollars for each day of
such violation or by imprisonment not exceeding six months, or both; and
any such person shall also be subject to a civil penalty of not more
than five thousand dollars for each day of such violation to be
recovered in a civil action or returnable to the department of consumer
affairs or other administrative tribunal of competent jurisdiction; and
c. (i) In the event that a shipboard gambling business has violated
subdivision f of section 20-963 of this chapter, the commission, in
addition to any other penalty prescribed in this section, shall, after
providing notice and the opportunity to be heard, be authorized to order
that any gambling device or other gambling equipment used in the
violation of such subdivision shall be removed, sealed or otherwise made
inoperable. An order pursuant to this paragraph shall be posted on the
vessel on which such violation occurs. The commission shall take
reasonable measures to provide notice to a person(s) holding a security
interest(s) in a gambling device or gambling equipment with respect to
which action is taken pursuant to this section.
(ii) Ten days after the posting of an order issued pursuant to
paragraph (i) of this subdivision, this order may be enforced by any
person so authorized by section 20-962 of this chapter.
(iii) Any gambling device or gambling equipment removed pursuant to
the provisions of this subdivision shall be stored at a dock or in a
garage, pound or other place of safety and the owner or other person
lawfully entitled to the possession of such item may be charged with
reasonable costs for removal and storage payable prior to the release of
such item.
(iv) A gambling device or gambling equipment sealed or otherwise made
inoperable or removed pursuant to this subdivision shall be unsealed,
restored to operability or released upon payment of all outstanding
fines and all reasonable costs for removal and storage and upon
demonstration satisfactory to the commission that the provisions of
subdivision f of section 20-963 will be complied with in all respects.
(v) It shall be a misdemeanor for any person to remove the seal from
or make operable any gambling device or gambling equipment sealed or
otherwise made inoperable in accordance with an order of the commission.
(vi) A gambling device or gambling equipment removed pursuant to this
subdivision that is not reclaimed within ninety days of such removal by
the owner or other person lawfully entitled to reclaim such item shall
be subject to forfeiture upon notice and judicial determination in
accordance with provisions of law. Upon forfeiture, the commission
shall, upon a public notice of at least ten business days, sell such
item at public sale. The net proceeds of such sale, after deduction of
the lawful expenses incurred, shall be paid into the general fund of the
city.
d. The corporation counsel is authorized to commence a civil action on
behalf of the city for injunctive relief to restrain or enjoin any
activity in violation of this chapter and for civil penalties.
Section 20-961
§ 20-961 Liability for violations. A shipboard gambling business
required by this chapter to be licensed shall be liable for violations
of any of the provisions of this chapter or any rules promulgated
pursuant hereto committed by any of its principals acting within the
scope of such business and any of its employees and/or agents within the
scope of their employment.
Section 20-962
§ 20-962 Enforcement. Notices of violation for violations of any
provision of this chapter or any rule promulgated hereunder may be
issued by authorized employees or agents of the commission or the police
department. In addition, such notices of violation may, at the request
of the commission and with the consent of the appropriate commissioner,
be issued by authorized employees and agents of the department of
consumer affairs or the department of investigation.
Section 20-963
§ 20-963 Conduct of shipboard gambling licensees. a. A shipboard
gambling licensee shall be in compliance with all applicable federal,
state and local statutes, laws, rules and regulations governing
operation of a shipboard gambling business, including but not limited
to: (i) specifications for design and construction, equipment required
to be present on board such vessel, maintenance, inspection,
documentation, operation and licensing of such vessels; requirements for
the medical fitness, training and other qualifications, drug testing and
licensing of the crew of such vessels; environmental requirements;
requirements regarding safety and conditions of employment on such
vessel; and requirements for accessibility under the Americans with
Disabilities Act and any regulations promulgated pursuant thereto, as
such regulations may from time to time be amended and analogous
provisions of title eight of this code;
(ii) prohibitions of gambling activity or the use of gambling devices
within the territorial waters of the United States or the state of New
York;
(iii) applicable zoning and building code requirements;
(iv) requirements governing the service and provision of food and
alcoholic beverages within the territorial waters of the state of New
York; and
(v) health and sanitary regulations.
b. A shipboard gambling licensee shall maintain audited financial
statements, records, ledgers, receipts, bills and such other records as
the commission determines are necessary or useful for carrying out the
purposes of this chapter. Such records shall be maintained for a period
of time not to exceed five years to be determined by rule of the
commission, provided, however, that such rule may provide that the
commission may, in its discretion, require that records be retained for
a period of time exceeding five years. Such records shall be made
available for inspection and audit by the commission at its request and,
at the option of the commission, at either the licensee's place of
business or at the offices of the commission.
c. A shipboard gambling licensee shall maintain liability and other
insurance as prescribed by rule of the commission.
d. A shipboard gambling licensee shall, in accordance with rules of
the commission, institute and maintain security and safety measures and
shall provide and maintain such other public services for the welfare of
patrons required by such rules.
e. A shipboard gambling licensee shall, upon request by a passenger
who does not wish to leave the vessel carrying cash on his or her
person, provide payment of winnings by check.
f. A shipboard gambling licensee shall ensure, by means acceptable to
the commission and the department of investigation, that all gambling
devices and gambling equipment on board the vessel are secured or made
inoperable during any period the vessel is in the territorial waters of
New York and shall comply with all rules promulgated by the commission
regarding the maintenance, safeguarding and storage of gambling devices.
g. A shipboard gambling licensee shall adopt measures to ensure that
persons under eighteen years of age do not engage in gambling aboard a
vessel operated by or on behalf of such licensee.
h. All advertising by a shipboard gambling licensee shall prominently
state the age restrictions for engaging in gambling aboard the vessel,
and shall comply with all rules governing advertising promulgated by the
commission.
i. A shipboard gambling licensee shall provide access to the vessel(s)
operated by or on behalf of the shipboard gambling business to any
person authorized by section 20-962 of this chapter to enforce the
provisions of this chapter including, but not limited to, regular and
permanent access by any person assigned to such vessel by an agency
authorized to enforce the provisions of this chapter.
j. A shipboard gambling licensee shall not purchase goods or services
from a key vendor or an auxiliary vendor unless such vendor has first
obtained a license from or registered with the commission, whichever is
applicable, unless the shipboard gambling licensee has obtained
permission from the commission as provided by rule of the commission
pursuant to subdivision q of section 20-950 of this chapter or the key
vendor or auxiliary vendor has been granted a waiver pursuant to such
subdivision.
k. (i) A shipboard gambling licensee shall not employ any person
required to obtain a license, certificate of approval or to register
pursuant to the provisions of this chapter unless such person has
obtained such license, certificate of approval or registration;
provided, however, that the commission shall, by rule, make provision
for temporary permission for employment pending completion by the
commission of review of an applicant for a certificate of approval or
registration and may, in its discretion, permit the employment of a key
employee who has not obtained the required license where the employment
of such person is necessary for the operation of the shipboard gambling
business.
(ii) The commission may, upon the request of a shipboard gambling
business, make available the names of applicants for employment who have
been approved for licenses, certificates of approval or registrations.
l. A shipboard gambling licensee shall demonstrate and ensure for each
vessel operated by or on behalf of such licensee, irrespective of the
size of the vessel, that (i) every crew member required by the
certificate of inspection issued for each such vessel by the United
States coast guard or the analogous document issued pursuant to the
international convention for the safety of lives at sea meets all marine
personnel requirements set forth in such certificate or document and
holds the applicable documentation, (ii) at least sixty-five percent of
the required number of crew actually manning the vessel, as set forth in
the certificate of inspection issued for each such vessel by the United
States coast guard or the analogous document issued pursuant to the
international convention for the safety of lives at sea, exclusive of
those required to be licensed by the United States coast guard or the
international maritime organization, have merchant mariners' documents
endorsed for a rating of at least able seaman or the international
maritime equivalent, and (iii) every person employed on each such vessel
has received familiarization training consistent with the standards
regarding emergency occupational safety, medical care and survival
functions set forth in the seafarer's training, certification and
watchkeeping code.
m. A shipboard gambling licensee shall comply with all additional
rules governing conduct of a shipboard gambling business promulgated by
the commission in order to effectuate the purposes of this chapter.
Section 20-964
§ 20-964 Rules. The commission may promulgate such rules as it may
deem necessary or useful to effectuate the purposes of this chapter.
Section 20-965
§ 20-965 Hearings. a. A hearing pursuant to this chapter may be
conducted by the commission, or, in the discretion of the commission, by
an administrative law judge employed by the office of administrative
trials and hearings or other administrative tribunal of competent
jurisdiction. Where a hearing pursuant to a provision of this chapter is
conducted by an administrative law judge, such judge shall submit
recommended findings of fact and a recommended decision to the
commission, which shall make the final determination.
b. Notwithstanding the provisions of subdivision a of this section,
the commission may provide by rule that hearings or specified categories
of hearings pursuant to this subchapter may be conducted by the
department of consumer affairs. Where the department of consumer affairs
conducts such hearings, the commissioner of consumer affairs shall make
the final determination.
Section 20-966
§ 20-966 Reporting requirements. a. No later than one week following
the submission of the mayor's management report, the commission shall
submit to the council a report detailing its activities pursuant to this
chapter for the period covered by the mayor's management report. The
report required by this section shall at a minimum include:
i. the number of applicants for a license, certificate of approval or
registration that were denied by the commission and a statement of the
reasons for such denials;
ii. the number of licenses, certificates of approval and registrations
issued by the commission;
iii. the number of applications for licenses, certificates of approval
or registrations, respectively, presently pending;
iv. the number of licenses, certificates of approval and registrations
that have been suspended or revoked by the commission pursuant to
section 20-959 of this chapter, a statement of the reasons for such
suspensions and revocations, and the average duration of such
suspensions;
v. the amounts, by category, of all fees relating to implementation of
this chapter to which the city is entitled, the amounts actually
collected, and the reasons for any difference between the two amounts;
and
vi. the amounts, by category, of all expenditures relating to
enforcement of the provisions of this chapter.
b. The information required by paragraphs i, ii and iv of subdivision
a of this section shall identify the shipboard gambling business to
which the information relates.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
Special thanks to Benjarmin Kallos and Thom Neale who made this content publicly available as a bulk download.