Section 20-433
§ 20-433 Short title. This subchapter shall be known and may be cited
as the New York city games of chance licensing law.
Section 20-434
§ 20-434 Legislative intent. The council hereby declares that the
raising of funds for the promotion of bona fide charitable, educational,
scientific, health, religious, and patriotic causes and undertakings,
where the beneficiaries are undetermined, is in the public interest. It
hereby finds that, as conducted prior to the enactment of this
subchapter, games of chance were the subject of exploitation by
professional gamblers, promoters and commercial interests. It is hereby
declared to be the policy of the council that all phases of supervision,
licensing and regulation of games of chance and the conduct of games of
chance should be closely controlled and that the local laws and
regulations pertaining thereto should be strictly construed and rigidly
enforced; that the conduct of the games and all attendant activities
should be so regulated and adequate controls so instituted as to
discourage commercialization in all its forms, including the rental of
commercial premises for games of chance, and to ensure a maximum
availability of the net proceeds of games of chance exclusively for
application to the worthy causes and undertakings specified herein; that
the only justification for this subchapter is to foster and support such
worthy causes and undertakings, and that the mandate of section nine of
article one of the state constitution, as amended, and of article nine-A
of the general municipal law, should be carried out by rigid regulations
to prevent commercialized gambling, prevent participation by criminal
and other undesirable elements and prevent the diversion of funds from
the purposes herein authorized.
Section 20-435
§ 20-435 Definitions. As used in this subchapter, the following terms
shall have the following meanings:
1. "Board" shall mean New York state racing and wagering board.
2. "Games of chance" shall mean and include specific games of chance,
in which prizes are awarded on the basis of a designated winning number
or numbers, color or colors, symbol or symbols determined by chance, but
not including games commonly known as "bingo or lotto" which are
controlled under article fourteen-H of the general muncipal law and also
not including "slot machines", "bookmaking", and "policy or numbers
games" as defined in section 225.00 of the penal law. No game of chance
shall involve wagering of money by one player against another player.
3. "Authorized organization" shall mean and include any bona fide
religious or charitable organization or bona fide educational or service
organization or bona fide organization of veterans or volunteer
firefighters, which by its charter, certificate of incorporation,
constitution, or act of the legislature, shall have among its dominant
purposes one or more of the lawful purposes as defined in this
subchapter, provided that each shall operate without profit to its
members, and provided that each such organization has engaged in serving
one or more of the lawful purposes as defined in this subchapter for a
period of three years immediately prior to applying for a license under
this subchapter.
No organization shall be deemed an authorized organization which is
formed primarily for the purpose of conducting games of chance and the
distribution of the proceeds thereof to itself or any other organization
and which does not devote at least seventy-five percent of its
activities to other purposes set forth in this subdivision. No political
party shall be deemed an authorized organization.
4. "Lawful purposes" shall mean one or more of the following causes,
deeds or activities:
(a) Those which shall benefit needy or deserving persons indefinite in
number by enhancing their opportunity for religious or educational
advancement, by relieving them from disease, suffering or distress, or
by contributing to their physical well-being, by assisting them in
establishing themselves in life as worthy and useful citizens, or by
increasing their comprehension of a devotion to the principles upon
which this nation was founded and enhancing their loyalty to their
governments.
(b) Those which shall initiate, perform or foster worthy public works
or shall enable or further the erection or maintenance of public
structures;
(c) Those which shall otherwise lessen the burdens borne by government
or which are voluntarily undertaken by an authorized organization to
augment or supplement services which government would normally render to
the people.
5. "Net proceeds" shall mean (a) in relation to the gross receipts
from one or more occasions of games of chance, the amount that shall
remain after deducting the reasonable sums necessarily and actually
expended for supplies and equipment, prizes, stated rental if any,
bookkeeping or accounting services according to a schedule of
compensation prescribed by the board, janitorial services and utility
supplies if any, license fees, and the cost of bus transportation, if
authorized by the board and (b) in relation to the gross rent received
by an organization licensed to conduct such games for the use of its
premises by another licensee, the amount that shall remain after
deducting the reasonable sums necessarily and actually expended for
janitorial services and utility supplies directly attributable thereto
if any.
6. "Net lease" shall mean a written agreement between a lessor and
lessee under the terms of which the lessee is entitled to the
possession, use or occupancy of the whole or part of any premises from
any non-commercial or non-profit organization for which the lessee pays
rent to the lessor and likewise undertakes to pay substantially all of
the regularly recurring expenses to the operation and maintenance of
such leased premises.
7. "Authorized games of chance lessor" shall mean an authorized
organization which has been granted a lessor's license pursuant to the
provisions of this subchapter.
8. "Prize" shall mean a sum of money or item or merchandise awarded by
the authorized organization to a participant in any one operation or
conducting of a game of chance in which participants utilize currency
for participation and in which those who are not winners surrender their
participating currency at the conclusion of the single operation of such
game of chance. No prize for any one participant in any one operation or
conducting of such single game of chance shall exceed the sum of one
hundred dollars. If a prize is awarded based on odds, only that portion
in excess of the winning participant's bet shall be considered as a
prize. For the purposes of this subdivision, the value of a prize which
consists of merchandise shall be the actual cost of the item of such
merchandise.
9. "Authorized supplier of games of chance equipment" shall mean any
person, firm, partnership or organization licensed by the board to sell
or lease games of chance equipment or paraphernalia which meets the
specifications and regulations established by the board. Nothing herein
shall prevent an authorized organization from purchasing common
articles, such as cards and dice, from normal sources of supply of such
articles or from constructing equipment and paraphernalia for games of
chance for its own use. However, no such equipment or paraphernalia
constructed by an authorized organization shall be sold or leased to any
other authorized organization without written permission from the board.
10. "One occasion" shall mean the conducting of any one type of game
of chance during any one license period. No series of prizes on any one
occasion shall aggregate more than one thousand dollars.
11. "Licensed period" shall mean a period of time not to exceed
fourteen consecutive hours.
Section 20-436
§ 20-436 Conduct of games of chance. 1. No person, firm, association,
corporation or organization, other than a licensee under the provisions
of this subchapter, shall conduct such game or shall lease or otherwise
make available for conducting games of chance a hall or other premises
for any consideration whatsoever, direct or indirect, except as provided
in section 20-437 of this subchapter.
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
subchapter shall purchase 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.
4. The entire net proceeds of any game of chance and of any rental
shall be exclusively devoted to the lawful purposes of the organization
permitted to conduct the same.
5. No prize shall exceed the sum or value of one hundred dollars in
any operation or conducting of a single game of chance as defined in
section 20-435 of this subchapter. No single wager shall exceed ten
dollars.
6. No series of prizes on any one occasion of games of chance shall
aggregate more than one thousand dollars as defined in section 20-435 of
this subchapter.
7. No person except a bona fide member of any such organization, its
auxiliary or affiliated organization, shall participate in the
management or operation of such game, as set forth in section 20-444 of
this subchapter.
8. No person shall receive any remuneration for participating in the
management or operation of any such game.
9. The unauthorized conduct of a game of chance shall constitute and
be punishable as a misdemeanor.
Section 20-437
§ 20-437 Application for license. 1. To conduct games of chance. (a)
Each applicant for a license shall, after obtaining an identification
number from the board, file with the department, a written application
therefor in form to be prescribed by the board, duly executed and
verified, in which shall be stated:
(1) the name and address of the applicant together with sufficient
facts relating to its incorporation and organization to enable such
department to determine whether or not it is a bona fide authorized
organization;
(2) the names and addresses of its officers; the place or places
where, the date or dates and the time or times when the applicant
intends to conduct games under the license applied for;
(3) the amount of rent to be paid or other consideration to be given
directly or indirectly for each occasion for use of the premises of
another authorized organization licensed under this subchapter to
conduct such games or for the use of the premises of an authorized games
of chance lessor;
(4) all other items of expense intended to be incurred or paid in
connection with the holding, operating and conducting of such games of
chance and the names and addresses of the persons to whom, and the
purposes for which, they are to be paid;
(5) the purposes to which the entire net proceeds of such games are to
be devoted and in what manner; that no commission, salary, compensation,
reward or recompense will be paid to any person for conducting such game
or games or for assisting therein except as in this subchapter otherwise
provided; and such other information as shall be prescribed by such
rules and regulations of the board.
(b) In each application there shall be designated not less than four
active members of the applicant organization under whom the game or
games of chance will be conducted and to the application shall be
appended a statement executed by the members so designated, that they
will be responsible for the conduct of such games in accordance with the
terms of the license, and the rules and regulations of the board and of
this subchapter.
2. Authorized games of chance lessor. Each applicant for a license to
lease premises to a licensed organization for the purpose of conducting
games of chance therein shall file with the department a written
application therefor, in a form to be prescribed by the board, duly
executed and verified, which shall set forth the name and address of the
applicant; designation and address of the premises intended to be
covered by the license sought; a statement that the applicant in all
respects conforms with the specifications contained in the definition of
"authorized organization" set forth in section 20-435 of this
subchapter, and such other information as shall be prescribed by the
board.
Section 20-438
§ 20-438 Investigation; matters to be determined; issuance of
license; fees; duration of license. 1. The department shall make an
investigation of the qualifications of each applicant and the merits of
each application, with due expedition after the filing of the
application.
(a) Issuance of licenses to conduct games of chance. If such
department shall determine that the applicant is duly qualified to be
licensed to conduct games of chance under this subchapter; that the
members of the applicant designated in the application to conduct games
of chance are bona fide active members of the applicant and are persons
of good moral character and have never been convicted of a crime, or, if
convicted, have received a pardon or a certificate of good conduct; that
such games are to be conducted in accordance with the provisions of this
subchapter and in accordance with the rules and regulations of the board
and that the proceeds thereof are to be disposed of as provided by this
subchapter; and if such department is satisfied that no commission,
salary, compensation, reward or recompense whatever will be paid or
given to any person holding, operating or conducting or assisting in the
holding, operation and conduct of any such games except as in this
subchapter otherwise provided; and that no prize will be given in excess
of the sum or value of one hundred dollars in any single game and that
the aggregate of all prizes given on one occasion, under said license
shall not exceed the sum or value of one thousand dollars, the
department shall issue a license to the applicant for the conduct of
games of chance upon payment of a license fee of twenty-five dollars for
each license period.
(b) Issuance of licenses to authorized games of chance lessors. If
such department shall determine that the applicant seeking to lease a
hall or premises for the conduct of games of chance to an authorized
organization is duly qualified to be licensed under this subchapter;
that the applicant satisfies the requirements for an authorized games of
chance lessor as defined in section 20-435 of this subchapter that such
department shall find and determine that there is a public need and that
public advantage will be served by the issuance of such license; that
the applicant has filed its proposed rent for each game of chance
occasion; that there is no diversion of the funds of the proposed lessee
from the lawful purposes as defined in this subchapter; and that such
leasing of a hall or premises for the conduct of such games is to be in
accordance with the provisions of this subchapter and in accordance with
the rules and regulations of the board, it shall issue a license
permitting the applicant to lease said premises for the conduct of such
games to the authorized organization or organizations specified in the
application during the period therein specified or such shorter period
as such department shall determine, but not to exceed one year, upon
payment of a license fee of fifty dollars.
2. On or before the thirtieth day of each month, the comptroller
shall transmit to the state comptroller a sum equal to fifty percent of
all authorized games of chance lessor license fees and the sum of
fifteen dollars per license period for the conduct of games of chance
collected by such department pursuant to this section during the
preceding calendar month.
3. No license shall be issued under this subchapter which shall be
effective for a period of more than one year.
Section 20-439
§ 20-439 Hearing; amendment of license. 1. No application for the
issuance of a license to an authorized organization shall be denied by
the department, until after a hearing, held on due notice to the
applicant, at which the applicant shall be entitled to be heard upon the
qualifications of the applicant and the merits of the application.
2. Any license issued under this subchapter may be amended, upon
application made to such department which issued it, if the subject
matter of the proposed amendment could lawfully and properly have been
included in the original license and upon payment of such additional
license fee if any, as would have been payable if it had been so
included.
Section 20-440
§ 20-440 Form and contents of license; display of license. 1. Each
license to conduct games of chance shall be in such form as shall be
prescribed in the rules and regulations promulgated by the board, and
shall contain a statement of the name and address of the licensee, of
the names and addresses of the member or members of the licensee under
whom the games will be conducted, of the place or places where and the
date or dates and time or times when such games are to be conducted and
of the purposes to which the entire net proceeds of such games are to be
devoted; if any prize or prizes are to be given in cash, a statement of
the amounts of the prizes authorized so to be given; and any other
information which may be required by said rules and regulations to be
contained therein, and each license issued for the conduct of any games
shall be conspicuously displayed at the place where same is to be
conducted at all times during the conduct thereof.
2. Each license to lease premises for conducting games of chance will
be in such form as shall be prescribed in the rules and regulations of
the board and shall contain a statement of the name and address of the
licensee and the address of the leased premises, the amount of
permissible rent and any information which may be required by said rules
and regulations to be contained therein, and each such license shall be
conspicuously displayed upon such premises at all times during the
conduct of games of chance.
Section 20-441
§ 20-441 Control and supervision; suspension of licenses; inspection
of premises; rulemaking. 1. The department shall have and exercise rigid
control and close supervision over all games of chance conducted under
such license, to the end that the same are fairly conducted in
accordance with the provisions of such license, the provisions of the
rules and regulations promulgated by the board and the provisions of
this subchapter, and the department and the board shall have the power
and authority to temporarily suspend any license issued by the
department pending a hearing and, after notice and hearing, the
department and the board may suspend or revoke same, and additionally,
impose a fine not exceeding one thousand dollars for violation of any
such provisions, and the department and the board shall have the right
of entry, by their respective officers and agents, at all times into any
premises where any game of chance is being conducted or where it is
intended that any such game shall be conducted, or where any equipment
being used or intended to be used in the conduct thereof is found, for
the purpose of inspecting the same. An agent of the department shall
make an on-site inspection during the conduct of all games of chance
licensed pursuant to this subchapter.
2. Service of alcoholic beverages. Subject to the applicable
provisions of the alcoholic beverage control law, beer may be offered
for sale during the conduct of games of chance but the offering of all
other alcoholic beverages is prohibited.
3. The commissioner of the department may promulgate such rules and
regulations as deemed necessary for the proper implementation and
enforcement of this subchapter and which are not inconsistent with those
rules and regulations promulgated by the board.
Section 20-442
§ 20-442 Participation by persons under eighteen. No person under the
age of eighteen years shall be permitted to play any game or games of
chance conducted pursuant to any license issued under this subchapter.
No person under the age of eighteen years shall be permitted to conduct
or assist in the conduct of any game of chance conducted pursuant to any
license issued under this subchapter.
Section 20-443
§ 20-443 Frequency of games. No game or games of chance shall be
conducted under any license issued under this subchapter more often than
twelve times in any calendar year. Games shall be conducted only between
the hours of noon and midnight on Monday, Tuesday, Wednesday, Thursday,
and Sunday; and between the hours of noon on Friday and two a.m.
Saturday; and between the hours of noon on Saturday and two a.m. Sunday.
The two a.m. closing period shall also apply to a legal holiday.
Notwithstanding the foregoing provisions of this section no games of
chance shall be conducted on Easter Sunday, Christmas Day, New Year's
Eve, and the days of Rosh Hashanah and Yom Kippur.
Section 20-444
§ 20-444 Persons operating and conducting games; equipment; expenses;
compensation. No person shall hold, operate or conduct any games of
chance under any license issued under this subchapter except an active
member of the authorized organization to which the license is issued,
and no person shall assist in the holding, operating or conducting of
any game of chance under such license except such an active member or a
member of an organization or association which is an auxiliary to the
licensee or a member of an organization or association of which such
licensee is an auxiliary or member of an organization or association
which is affiliated with the licensee by being, with it, auxiliary to
another organization or association. 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. At least two officers, directors,
trustees or clergy of the authorized organization shall upon request
certify, under oath, that the persons assisting in holding, operating or
conducting any game of chance are bona fide members of such authorized
organization, auxiliary or affiliated organization. Upon request by the
department, any such person involved in such games of chance shall
certify that he or she has 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 subchapter except those
that are reasonable and are necessarily expended for games of chance
supplies and equipment, prizes stated rental if any, bookkeeping or
accounting services according to a schedule of compensation prescribed
by the board, janitorial services and utility supplies if any, license
fees, and the cost of bus transportation, if authorized by such
department.
Section 20-445
§ 20-445 Charge for admission and participation; amount of prizes;
award of prizes. Not more than two dollars shall be charged by any
licensee for admission to any room or place in which any game or games
of chance are to be conducted under any license issued under this
subchapter. The department may in its discretion fix a minimum fee.
Every winner shall be determined and every prize shall be awarded and
delivered within the same calendar day as that upon which the game was
played. No alcoholic beverage shall be offered or given as a prize in
any game of chance.
Section 20-446
§ 20-446 Advertising games. No game of chance conducted or to be
conducted in this city shall be advertised as to its location, the time
when it is to be or has been played, or the prizes awarded or to be
awarded, or transportation facilities to be provided to such game, by
means of newspapers, radio, television or sound trucks or by means of
billboards, posters or handbills or any other means addressed to the
general public, except that one sign not exceeding sixty square feet in
area may be displayed on or adjacent to the premises owned or occupied
by a licensed authorized organization, and when an organization is
licensed to conduct games of chance on premises of an authorized games
of chance lessor, one additional such sign may be displayed on or
adjacent to the premises in which the games are to be conducted.
Additional signs may be displayed upon any fire fighting equipment
belonging to any licensee, which is a volunteer fire company, or upon
any first-aid or rescue squad equipment belonging to any licensee, which
is a first-aid or rescue squad, in and throughout the community or
communities served by such volunteer fire company or such first-aid or
rescue squad, as the case may be.
Section 20-447
§ 20-447 Statement of receipts, expenses; additional license fees. 1.
Within seven days after the conclusion of any license period, the
authorized organization which conducted the same, and its members who
were in charge thereof, and when applicable the authorized organization
which rented its premises therefor, shall each furnish to the department
a statement subscribed by the member in charge and affirmed by him or
her as true, under the penalties of perjury, showing the amount of the
gross receipts derived therefrom and each item of expense incurred, or
paid, and each item of expenditure made or to be made other than prizes,
the name and address of each person to whom each such item of expense
has been paid, or is to be paid, with a detailed description of the
merchandise purchased or the services rendered therefor, the net
proceeds derived from the conduct of the games of chance during such
license period, and the use to which such proceeds have been or are to
be applied and a list of prizes offered and given, with the respective
values thereof, and it shall be the duty of each licensee to maintain
and keep such books and records as may be necessary to substantiate the
particulars of each such statement.
2. Upon the filing of such statement of receipts, the authorized
organization furnishing the same shall pay to the department as and for
an additional license fee a sum based upon the reported net proceeds, if
any, for the license period covered by such statement and determined in
accordance with such schedule as shall be established from time to time
by the board to defray the actual cost to the city of administering the
provisions of this subchapter, but such additional license fee shall not
exceed five percent of the net proceeds for such occasion.
Section 20-448
§ 20-448 Examination of books and records; examination of officers and
employees; disclosure of information. 1. The department and the board
shall have power to examine or cause to be examined the books and
records of:
a. Any authorized organization which is or has been licensed to
conduct games of chance, so far as they may relate to games of chance
including the maintenance, control and disposition of net proceeds
derived from games of chance or from the use of its premises for games
of chance, and to examine any manager, officer, director, agent, member
or employee thereof under oath in relation to the conduct of any such
game under any such license, the use of its premises for games of
chance, or the disposition of net proceeds derived from games of chance,
as the case may be.
b. Any authorized games of chance lessor so far as they may relate to
leasing premises for games of chance and to examine said lessor or any
manager, officer, director, agent or employee thereof under oath in
relation to such leasing.
2. Any information received pursuant to subdivision one shall not be
disclosed except so far as may be necessary for the purpose of carrying
out the provisions of this subchapter.
Section 20-449
§ 20-449 Appeals from the decision of the department to the board. Any
applicant for, or holder of, any license issued or to be issued under
this subchapter aggrieved by any action of the department may appeal to
the board from the determination of said department by filing with such
department a written notice of appeal within thirty days after the
determination or action appealed from, and upon the hearing of such
appeal, the evidence, if any, taken before such department and any
additional evidence, may be produced and shall be considered in arriving
at a determination of the matters in issue, and the action of the board
upon said appeal shall be binding upon such department and all parties
to said appeal.
Section 20-450
§ 20-450 Offenses; forfeiture of license; ineligibility to apply for
license. Any person, association, corporation or organization who or
which shall:
(1) make any material false statement in any application for any
license authorized to be issued under this subchapter;
(2) pay or receive, for the use of any premises for conducting games
of chance, a rental in excess of the amount specified as the permissible
rent in the license provided for in subdivision two of section 20-440 of
this subchapter;
(3) fail to keep such books and records as shall fully and truly
record all transactions connected with the conducting of games of chance
or the leasing of premises to be used for the conduct of games of
chance;
(4) falsify or make any false entry in any books or records so far as
they relate in any manner to the conduct of games of chance, to the
disposition of the proceeds thereof and to the application of the rents
received by any authorized organization;
(5) divert or pay any portion of the net proceeds of any game of
chance to any person, association or corporation, except in furtherance
of one or more of the lawful purposes defined in this subchapter; shall
be guilty of a misdemeanor and shall forfeit any license issued under
this subchapter and be ineligible to apply for a license under this
subchapter for at least one year thereafter.
Section 20-451
§ 20-451 Unlawful games of chance. Any person, association,
corporation or organization holding, operating, or conducting a game or
games of chance is guilty of a misdemeanor, except when operating,
holding or conducting:
(a) in accordance with a valid license issued pursuant to this
subchapter, or
(b) on behalf of a bona fide organization of persons sixty years of
age or over, commonly referred to as senior citizens, solely for the
purpose of amusement and recreation of its members where (i) the
organization has applied for and received an identification number from
the board, (ii) no player or other person furnishes anything of value
for the opportunity to participate, (iii) the prizes awarded or to be
awarded are nominal, (iv) no person other than a bona fide active member
of the organization participates in the conduct of the games, and (v) no
person is paid for conducting or assisting in the conduct of the game or
games.