[HISTORY: Adopted by the Town Board of the Town of Smithtown 9-7-1976. Amendments
noted where applicable.]
This chapter shall be known as the "Town of Smithtown Games
of Chance Licensing Law."
This chapter is subject and subordinate to all the conditions
and provisions contained in Article 9-A of the General Municipal Law
and amendments thereto and any and all rules and regulations and opinions
adopted or to be adopted by the New York State Racing and Wagering
Board.
The Town Board finds the raising of funds for the promotion
of bona fide charitable, educational, scientific, health, religious,
patriotic and other worthy causes, and where the beneficiaries are
undetermined, to be in the public interest and that the mandate of
§ 9 of Article 1 of the State Constitution, as amended,
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.
As used in this chapter, the following terms shall have the
meanings indicated:
An authorized organization which has been granted a lessor's
license pursuant to the provisions of Article 9-A of the General Municipal
Law or pursuant to the provisions of this chapter.
Includes any bona fide religious or charitable organization
or bona fide educational or service organization or bona fide organization
of veterans or volunteer firemen which, by its charter, certificate
of incorporation, constitution or Act of the Legislature, shall have
among its dominant purposes those as defined in this chapter and provided
that each such organization shall operate without profit to its individual
members and provided that each such organization has engaged in serving
one (1) or more of the lawful purposes as defined in this chapter
for a period of three (3) years immediately preceding the filing of
an application for a license under this chapter. No organization shall
be deemed an "authorized organization" which is or has been formed
primarily for the purpose of conducting games of chance and the distribution
of the proceeds thereof to itself or any other organization or which
does not devote at least seventy-five percent (75%) of its activities
and funds to other lawful purposes set forth in this chapter. No political
party or club or committee shall be deemed an "authorized organization."
Any person, firm, corporation, partnership or organization
licensed by the New York State Racing and Wagering Board to sell or
lease games of chance equipment or paraphernalia which meets the specifications
and regulations established by the New York State Racing and Wagering
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 New York State Racing and Wagering Board.
Includes specific games of chance in which prizes are awarded on the basis of a designated winning number or numbers, color or colors or symbol or symbols determined by chance, but not including games commonly known as "bingo" or "lotto," which are controlled by Article 14-H of the General Municipal Law and Chapter 105 of the Code of the Town of Smithtown, and also not including slot machines, bookmaking and policy or number games, as defined in § 225.00 of the Penal Law. No game of chance shall involve the wagering of money by one player against another player.
One (1) or more of the following causes, deeds or activities:
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 and devotion to the principles
upon which this nation was founded and enhancing their loyalty to
their governments.
Those which shall initiate, perform or foster worthy public
works or shall enable or further the erection or maintenance of public
structures.
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 governments would normally
render to the people.
A period of time not to exceed fourteen (14) consecutive
hours.
In relation to the gross receipts from one (1) 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
New York State Racing and Wagering Board, janitorial services and
utility supplies, if any, license fees and the cost of bus transportation
if authorized by the division.
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.
The conducting of any type of game of chance during any one
(1) license period. No series of prizes on any one (1) occasion shall
aggregate more than one thousand dollars ($1,000.).
A sum of money or item of merchandise awarded by the authorized
organization to a participant in any one (1) 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 (1) participant in any one (1) operation
or conducting of such single game of chance shall exceed the sum of
one hundred dollars ($100.). 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 chapter,
the value of a prize which consists of merchandise shall be the actual
cost of the item of such merchandise.
The Town Board of the Town of Smithtown.
The Town Clerk of the Town of Smithtown.
The Town Clerk is hereby delegated the authority granted to
the Town Board by the New York State Games of Chance Licensing Law,
Article 9-A of the General Municipal Law, in relation to the issuance,
amendment and cancellation of licenses, the conduct of investigations
and hearings and the collection and transmission of fees.
A.
No person, firm, association, corporation or organization, other than a licensee under the provisions of this chapter, 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 § 173-7 of this Games of Chance Licensing Law.
B.
No game of chance shall be held, operated or conducted on or within
any leased premises if the 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.
C.
No authorized organization licensed under the provisions of this
chapter shall purchase or receive any supplies or equipment specifically
designed or adapted for use in the conduct of games of chance from
other than an authorized supplier of games of chance equipment licensed
by the New York State Racing and Wagering Board.
D.
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.
E.
No series of prizes on any one (1) occasion of games of chance shall
aggregate more than one thousand dollars ($1,000.).
F.
No prize shall exceed the sum or value of one hundred dollars ($100.)
in any operation or conducting of a single game of chance. No single
wager shall exceed ten dollars ($10.).
G.
No person, except a bona fide member of any such organization, or its auxiliary or affiliated organization, shall participate in the management or operation of such game as set forth in § 173-12 of this chapter.
H.
No person shall receive any remuneration for participating in the
management or operation of any such game.
I.
The conduct of games of chance on Sundays is only permitted when
it is specifically provided for in the license issued. No games, however,
shall be conducted on Easter Sunday, Christmas Day or New Year's
Eve.
J.
No hall or other premises may be used for the conduct of games of
chance unless said hall or other premises, where applicable, complies
with the provisions of Title 12 NYCRR, Subpart 36, relative to places
of public assembly.
A.
License to conduct games of chance.
(1)
Each applicant for a license to conduct games of chance shall, after
obtaining an identification number from the New York State Racing
and Wagering Board, file with the Town Clerk a written application
therefor, in a form to be prescribed by the New York State Racing
and Wagering Board and/or the Town Clerk, duly executed and verified,
in which shall be stated:
(a)
The name and address of the applicant, together with sufficient
facts relating to its incorporation and organization to enable the
Town Clerk to determine whether or not it is a bona fide authorized
organization.
(b)
The names and home addresses of its officers and the place or
places where and the date or dates and the time or times when the
applicant intends to conduct games under the license applied for.
(c)
The amount of rent to be paid or other consideration to be given
directly or indirectly for such occasion for use of the premises of
another authorized organization licensed under this chapter to conduct
such games or for the use of the premises of an authorized games of
chance lessor.
(d)
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.
(e)
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 Article 9-A of the General Municipal Law otherwise provided; and
such other information as shall be prescribed by such rules and regulations
of the New York State Racing and Wagering Board.
(2)
In each application there shall be designated not fewer than four
(4) 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
New York State Racing and Wagering Board, Article 9-A of the General
Municipal Law and the provisions of this chapter.
B.
Licensing of 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 Town Clerk a written application therefor, in a form to be prescribed by the New York State Racing and Wagering Board and/or the Town Clerk, duly executed and verified, which shall set forth the name and address of the applicant, the designation and address of the premises intended to be covered by the license sought, a statement that the applicant in all respects conforms to the specifications contained in the definition of "authorized organization" set forth in § 173-4 of this chapter and such other information as shall be prescribed by the New York State Racing and Wagering Board and the provisions of this chapter.
A.
The Town Clerk 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.
(1)
Issuance of licenses to conduct games of chance. If the Town Clerk
shall determine that the applicant is duly qualified to be licensed
to conduct games of chance under this chapter and the member or 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 chapter and in accordance with the rules and regulations
of the New York State Racing and Wagering Board; and that the proceeds
thereof are to be disposed of as provided by this chapter, and if
the Town Clerk is satisfied that no commission, salary, compensation,
reward or recompense whatsoever 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 chapter otherwise
provided and that no prize will be given in excess of the sum or value
of one hundred dollars ($100.) in any single game and that the aggregate
of all prizes given on one (1) occasion under said license shall not
exceed the sum or value of one thousand dollars ($1,000.), said Town
Clerk shall issue a license to the applicant for the conduct of games
of chance upon the payment of a license fee of twenty-five dollars
($25.) for each license period.
(2)
Issuance of licenses to authorized games of chance lessors. If the Town Clerk 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 chapter; that the applicant satisfies the requirements for an authorized games of chance lessor as defined in § 173-4 of this chapter; 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 chapter; and that such leasing of a hall or premises for the conduct of such games is to be in accordance with the rules and regulations of the New York State Racing and Wagering Board, said Town Clerk 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 the Town Clerk shall determine, but not to exceed one (1) year, upon the payment of a license fee of fifty dollars ($50.).
(3)
Fingerprinting.
[Added 7-10-1979]
(a)
The applicant shall furnish the Town Clerk with a full set of
the applicant's fingerprints.
(b)
The Town Clerk shall be authorized to forward the applicant's
fingerprints to the Division of Criminal Justice Services for a criminal
background investigation.
(c)
The applicant shall be charged a fee of fifteen dollars ($15.)
for a full search and return from the Division of Criminal Justice
Services, said fee to be made payable to the Town Clerk of the Town
of Smithtown.
B.
On or before the 30th day of each month, the Comptroller of the Town
of Smithtown, on behalf of the Town Clerk, shall transmit to the State
Comptroller a sum equal to fifty percent (50%) of all authorized games
of chance lessor license fees and the sum of fifteen dollars ($15.)
per license period for the conduct of games of chance collected by
such Town Clerk pursuant to this section during the preceding calendar
month.
C.
No license shall be issued under this chapter which shall be effective
for a period of more than one (1) year.
D.
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.
E.
At least two (2) 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 or auxiliary or
affiliated organization. Upon request by the chief law enforcement
officer of Suffolk County, any such person involved in such games
of chance shall certify that he or she has no criminal record.
F.
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 chapter 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 New York State Racing and
Wagering Board, janitorial services and utility supplies, if any,
license fees and the cost of bus transportation if authorized by said
Board.
G.
Charge for admission and participation; amount of prizes; award of
prizes. Not more than two dollars ($2.) 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 chapter. 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.
H.
Advertising games. No game of chance conducted or to be conducted
in the Town of Smithtown shall be advertised as to its location, the
time when it is to be or has been played, 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 (1) sign not exceeding twenty-four
(24) 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 the premises
of an authorized games of chance lessor, one (1) 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 first aid and rescue squad in and throughout
the communities served by such volunteer fire company or such first
aid or first aid and rescue squad, as the case may be.
I.
Statement of receipts and expenses; additional license fees. Within
seven (7) 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 Town Clerk
a statement subscribed by the member in charge and affirmed by him
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 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.
J.
Examination of books and records; examination of officers and employees;
disclosure of information.
(1)
The Town Clerk, the chief law enforcement officer of Suffolk County
and the New York State Racing and Wagering 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 it 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 so received shall not be disclosed except so far
as may be necessary for the purpose of carrying out the provisions
of this chapter.
K.
Appeals from the decision of the Town Clerk to the New York State
Racing and Wagering Board. Any applicant for or holder of any license
issued or to be issued under this chapter aggrieved by any action
of the Town Clerk to whom such application has been made or by whom
such license has been issued may appeal to the New York State Racing
and Wagering Board from the determination of said Town Clerk by filing
with such Town Clerk written notice of appeal within thirty (30) days
after the determination or action appealed from, and upon the hearing
of such appeal, the evidence, if any, taken before such Town Clerk
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 New York State Racing and Wagering Board upon said appeal shall
be binding upon the Town Clerk and all parties to said appeal.
L.
Exemption from prosecution. No person, association, corporation or
organization lawfully conducting or participating in the conduct of
games of chance or permitting the conduct upon any premises owned
or leased by him or it under any license lawfully issued pursuant
to this chapter shall be liable to prosecution or conviction for violation
of any provision of Article 225 of the Penal Law or any other law
or ordinance, to the extent that such conduct is specifically authorized
by this chapter, but this immunity shall not extend to any person
or corporation knowingly conducting or participating in the conduct
of games of chance under any license obtained by any false pretense
or by any false statement made in any application for license or otherwise
or permitting the conduct upon any premises owned or leased by him
or it of any game of chance conducted under any license known to him
or it to have been obtained by any such false pretense or statement.
A.
No application for the issuance of a license to an authorized organization
shall be denied by the Town Clerk until after a hearing held by the
Town Clerk 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.
B.
Any license issued under this chapter may be amended upon application
made to such Town Clerk, 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.
A.
Each license to conduct games of chance shall be in such form as
shall be prescribed in the rules and regulations of the New York State
Racing and Wagering Board and shall contain a statement of the name
and address of the licensee, the names and addresses of the member
or members of the licensee under whom the games will be conducted,
the place or places where and the date or dates and time or times
when such games are to be conducted and the purposes to which the
entire net proceeds of such games are to be devoted and, 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.
Each license issued for the conduct of any games shall be conspicuously
displayed at the place where the same is to be conducted, at all times
during the conduct thereof.
B.
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 New York State Racing and Wagering 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. Each such license shall be conspicuously displayed upon such
premises at all times during the conduct of games of chance.
A.
The chief law enforcement officer of the County of Suffolk 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 New
York State Racing and Wagering Board and the provisions of this chapter,
and such chief law enforcement officer and the New York State Racing
and Wagering Board shall have the power and the authority to temporarily
suspend any license issued by the Town Clerk, pending a hearing held
by the Town Clerk, and after notice and hearing, the New York State
Racing and Wagering Board may suspend or revoke the same and 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
appropriate chief law enforcement officer shall make an on-site inspection
during the conduct of all games of chance licensed pursuant to this
chapter.
B.
The service of alcoholic beverages is 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.
A.
Participation by persons under eighteen (18). No person under the
age of eighteen (18) years shall be permitted to play any game or
games of chance conducted pursuant to any license issued under this
chapter. No person under the age of eighteen (18) years shall be permitted
to conduct or assist in the conduct of any game of chance conducted
pursuant to any license issued under this chapter.
B.
Frequency of games. No game or games of chance shall be conducted
under any license issued under this chapter more often than twelve
(12) times in any calendar year. Games shall be conducted only between
the hours of 12:00 noon and 12:00 midnight on Sunday, Monday, Tuesday,
Wednesday and Thursday and only between the hours of 12:00 noon on
Friday and 2:00 a.m. Saturday, and only between the hours of 12:00
noon on Saturday and 2:00 a.m. Sunday. The 2:00 a.m. closing period
shall also apply to a legal holiday.
C.
Persons operating and conducting games; equipment; expenses; compensation.
No person shall hold, operate or conduct any game of chance under
any license issued under this chapter 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 a member of an organization or association which
is affiliated with the licensee by being, with it, auxiliary to another
organization or association.
Any person, association, corporation or organization who or
which shall:
A.
Make any material false statement in any application for any license
authorized to be issued under this chapter;
B.
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 in § 173-7 of this chapter;
C.
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;
D.
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;
E.
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 (1) or more of the lawful purposes defined in this chapter; or
F.
Operate or conduct a game or games of chance unless in accordance
with a valid license issued pursuant to this chapter or unless on
behalf of a bona fide organization of persons sixty (60) years of
age or over, commonly referred to as "senior citizens," solely for
the purpose of amusement and recreation of its members, where the
organization has applied for and received an identification number
from the New York State Racing and Wagering Board, no player or person
furnishes anything of value for the opportunity to participate, the
prizes awarded or to be awarded are nominal, no person other than
a bona fide active member of the organization participates in the
conduct of the games and no person is paid for conducting or assisting
in the conduct of the game or games, shall forfeit any license heretofore
issued under this chapter, where applicable, and shall be ineligible
to apply for a license under this chapter for at least one (1) year
thereafter and, in addition, shall be guilty of a misdemeanor and
subject to a fine of up to one thousand dollars ($1,000.) or imprisonment
for up to six (6) months, or both.
The provisions of this chapter shall remain inoperative in the
Town of Smithtown unless and until a proposition therefor submitted
at a general election in the Town of Smithtown shall be approved by
a vote of the majority of the qualified electors in such municipality
voting thereon. Upon approval by said electors, this chapter shall
be effective on the first day of January next succeeding said election.[1]
[1]
Editor's Note: This chapter was approved by a majority
vote of the qualified electors of the Town of Smithtown at the general
election held November 2, 1976.
This chapter may be amended from time to time or
repealed by the Town Board of the Town of Smithtown by a two-thirds
(2/3) vote of such Town Board, and such amendment or repeal, as the
case may be, may be made effective and operative not earlier than
thirty (30) days following the date of enactment of the ordinance
affecting such amendment or repeal, as the case may be, and the approval
of a majority of the electors of the Town of Smithtown shall not be
a condition prerequisite to the taking effect of such chapter.
