Note: Editor's Note: Measure L, codified in this chapter,
was passed by the voters on 11-7-95.
(a)
Except as otherwise provided by Section 11.12.230 herein, it shall be unlawful for any person (i) to play or bet at, (ii) to deal, carry on or conduct, whether as owner or employee, (iii) or to knowingly permit in any house, room or place owned by him or under his charge, any game played, conducted, dealt or carried on with cards, dice or other device, for money, checks, chips, credit, merchandise or other representations of value. This ordinance shall not apply to any game or mechanical device defined in Part 1, Title 9, Chapter 10 of the California Penal Code (Section 330, et seq.)
(b)
Except as otherwise provided by Section 11.12.230 herein, it shall be unlawful for any person, for himself or herself, or for any other person, corporation, or other business entity to engage in or carry on, or to maintain or conduct, or cause to be engaged in, carried on, maintained or conducted, or share in the profits of, any gaming club in the city of Palm Springs without first having secured a license from the city to do so and without compliance with all of the provisions of this chapter and state law pertaining to gaming clubs. No gaming operations shall be conducted in any location within the city unless so authorized under the provisions of this chapter.
(c)
Games described below, when conducted in a licensed gaming club,
are allowed.
(Measure L § 7, 1995)
For the purpose of this chapter, the words and phrases hereinafter
set forth shall have the following meanings ascribed to them unless
the context clearly requires to the contrary:
is defined as banking or percentage table games, and mechanical
or electronic games of chance and of mixed chance and skill.
means the city of Palm Springs.
means a business establishment licensed under the provisions
of this chapter for the playing of those games authorized under this
chapter, and shall include any business activities accessory thereto
that are conducted on the premises, including, but not limited to,
food, beverage and valet services.
means any natural person employed in the operation of a gaming
club authorized under this chapter, including, without limitation,
dealers, floormen, security employees, count room personnel, cage
personnel, collection personnel, surveillance personnel, data processing
personnel, appropriate maintenance personnel, or any other natural
person whose employment duties relate to gaming.
means any game as described in Section 11.12.030.
means the act of conducting or participating in games at
a gaming club.
means and includes the total amount of revenue received by
a licensee directly derived from gaming conducted by the licensee,
including, but not limited to, seat or space rentals charged and received
by a licensee for the privilege of allowing a patron to participate
in a game; provided, however, gross receipts shall not include fees
charged to players when returned to players as tournament prizes or
jackpots. No deduction from gross receipts shall be allowed for any
purpose, including, but not limited to, any charge, cost or expenses
incurred by the licensee in the conduct of a gaming club; provided,
however, if casino gaming is allowed in California by any statutory
or case law, then for that purpose a deduction from gross receipts
shall be allowed for all payments made to patrons for their winning
a wager.
means a license issued by the city council pursuant to this
chapter permitting the operation of a gaming club.
means the holder of a license.
means a table at which a game is played, having space for
a dealer and players.
refers to California Business and Professions Code Section
19800, et seq., which Act regulates gaming clubs in the state of California.
means the Agua Caliente Band of Cahuilla Indians.
(Measure L § 7, 1995)
All legal gambling and games allowed under California law, as
such laws may be amended from time to time, are permitted to be played
in gaming clubs located in and licensed by the city, including but
not limited to draw poker, lowball poker, panguingue (pan), seven-card
stud, pai gow poker, and super pan 9.
(Measure L § 7, 1995)
Gaming clubs may only be established if they qualify under subsection
(1), below, and if they meet the conditions of subsections (2), (3),
(4), (5) and (6), below:
(1)
A gaming club may be developed if located in an area with a gaming
overlay zoning designation as established pursuant to the zoning ordinance
and general plan amendments established by this chapter.
(2)
The gaming club must be at least twenty thousand square feet in area,
not including any related hotel or other facilities except eating
or other accessory uses directly serving the gaming club.
(3)
The operator of the gaming club must have a valid gaming license as provided in Section 11.12.090.
(4)
The operator of the gaming club and owner of the property must have
a valid conditional use permit for the use.
(5)
The licensee shall comply with Section 19805 of the California Business
and Professions Code.
(6)
No gaming club shall operate under any name which includes the term
"card" or "cards."
(Measure L § 7, 1995)
(a)
No gaming club shall have less than thirty nor more than two hundred
tables approved or in regular operation.
(b)
There shall be no more than five hundred tables in the city.
(c)
Tables that operate irregularly shall not be counted for the purposes
of the limitations imposed by this section. "Irregular operation of
tables" means the limited operation of tables for temporary tournaments
and other special events, as may be permitted by this chapter and
state law.
(Measure L § 7, 1995)
Gaming clubs may operate up to twenty-four hours per day. If the proposed gaming club site is located adjacent to residential-zoned property, such hours may be restricted by the city council as a condition of license or conditional use permit approval with respect to those gaming clubs authorized pursuant to Section 11.12.040.
(Measure L § 7, 1995)
Subject to the provisions of this chapter, any person who qualifies under Section 11.12.040, including a proposed transferee of an existing license, desiring to conduct a gaming club shall file with the city manager a written application therefor. Each such application shall contain the following:
(1)
The date of the application;
(2)
The legal name of the applicant and any other name by which the applicant
is or was known;
(3)
The status of the applicant, i.e., an individual, corporation, partnership
or joint venture;
(4)
Any person who shares in the profits of the gaming club, directly
or indirectly, including a lessor if percentage rents are involved,
shall be included in the application;
(5)
The name, residence, the business address and personal histories
of each of the shareholders, officers, directors, partners, principals
or joint venturers of such applicant;
(6)
The proposed site for the gaming club;
(7)
The type and nature of the games proposed to be played;
(8)
The number of tables to be placed in the gaming club;
(9)
The hours of operation;
(10)
A description of any accessory uses, including but not limited to
food, beverage and valet services, proposed to be conducted at the
site;
(11)
A site plan depicting the building or buildings proposed for such
usage;
(12)
An acknowledgement by the applicant that:
(A)
At all times during which the license is in existence, all buildings
and structures located or to be located on the site shall conform
to all applicable laws related to the occupancies proposed,
(B)
The applicant understands that the application will be considered
by the city council only after a full investigation and report have
been made,
(C)
The applicant understands and agrees that any authorized accessory
use conducted at the site by a licensee shall be operated in full
conformity with all applicable laws and that any violation of any
applicable laws shall be grounds for revocation of the license,
(D)
The applicant is aware that all information submitted as a part of
the application, or otherwise required hereunder to monitor operations
of the gaming club, is public information and may be disclosed by
the city,
(E)
The applicant has read, understands and will abide by, as conditions
of issuance upon a license, all of the provisions of this chapter;
(13)
A full and complete audited financial statement relating to the applicant.
Notwithstanding subsection (12)(d) above, the financial statement
shall be confidential and only released to city employees who have
a need to know;
(14)
A detailed plan regarding proposed security measures to protect the
safety of gaming club patrons and community residents;
(15)
Any other information reasonably required by the city manager;
(16)
Payment of a deposit of twenty-five thousand dollars, to defray the
cost of processing the application, including the costs of conducting
required investigations. Any unused portion of the deposit shall be
refunded to the applicant;
(17)
A copy of the registration form filed by the applicant with the Attorney
General pursuant to Section 19805 of the Gaming Registration Act.
(Measure L § 7, 1995)
(a)
Investigations Required.
Whenever an application for a license, or for the transfer of
a license, has been filed with the city manager, and accepted as complete,
the city manager shall immediately refer such application to the chief
of police and other appropriate city officials, or city-employed consultants,
who shall cause an investigation to be conducted covering the following:
(b)
Reports Required.
The chief of police shall conduct the required investigations
and shall file written reports with the city council within sixty
days.
(c)
Updated Investigations.
The chief of police shall have the right to require any applicant,
licensee or employee holding a work permit to supply additional or
updated information to that previously required of such person for
use in any investigation being conducted by the chief. Additionally,
each such person shall cooperate in any such investigation undertaken
by the chief, or any other law enforcement official, and shall allow
any and all relevant books, records, and accounts to be inspected
and copied by the city.
(Measure L § 7, 1995)
(a)
Decision of the City Council.
The city council, subject to the provisions of this chapter, shall by resolution approve, conditionally approve or deny an application for the issuance, amendment of the conditions on issuance of a license, or transfer of a license. Such action shall take place after noticed public hearing, which notice shall be given as stated below. In all cases, the burden of proof is on the applicant to demonstrate entitlement to the issuance, amendment, or transfer of a license, except that where the city denies a license, the burden of proof by a preponderance of the evidence shall be on the city to establish the standards set forth in Section 11.12.100.
(b)
Notice of Public Hearing.
Notice of a public hearing to consider a gaming club application
or amendment of an existing license shall contain the time and place
of the hearing and the location of the proposed gaming club, and shall,
at least ten days prior to the hearing, be posted on the official
City Hall bulletin board, published in a newspaper of general circulation,
and mailed to owners of record of property located within a radius
of five hundred feet of the exterior boundaries of the subject property.
(c)
Conditions.
Any license which is ordered issued, amended or transferred
by the city council shall be deemed issued or transferred subject
to compliance with all applicable laws. The city council may impose
specific additional conditions of approval upon the issuance, amendment
or transfer of a license which in the exercise of its discretion it
deems reasonably necessary to ensure compliance with applicable laws
and public health, safety and welfare.
(Measure L § 7, 1995)
The city council, after hearing, shall deny an application for
a license, or amendment or transfer of a license, if any of the following
facts are found to exist:
(1)
If the proposed gaming club or any accessory use is or will be operated
in violation of any applicable state law;
(2)
If any applicant, including a corporate officer, director, shareholder,
partner, joint venturer, or principal has been convicted of any crime
involving moral turpitude, including, but not limited to, the crimes
of book-making, loan sharking, illegal gambling, fraud, larceny, or
any other felony involving bookmaking;
(3)
If any applicant has made any false statement on the application
or as to any other information presented as part of the application
process;
(4)
If the applicant does not have the financial capability to operate
a high quality gaming club;
(5)
If the applicant does not have the business experience necessary
to operate a high quality gaming club;
(6)
If the gaming club site, and all buildings or structures located
or to be located thereon, do not meet the requirements of applicable
laws relating to such usage;
(7)
If the proposed security and safety measures are inadequate to ensure
excellent protection for patrons and the community;
(8)
If the proposed gaming club site does not meet the locational or other conditions of Section 11.12.040;
(9)
If the gaming club on the proposed site will be detrimental to the
public health, safety or general welfare;
(10)
If any person of the class of persons referred to in Section 11.12.070(5) is under twenty-one years of age.
(Measure L § 7, 1995)
Judicial review of any decision of the city council may be had
pursuant to Section 1094.5 of the California Code of Civil Procedure
only if the petition for writ of mandate pursuant to said section
is filed within the time limit specified in Section 1094.6 of the
California Code of Civil Procedure. Thereafter, all persons are barred
from commencing or prosecuting any such action or proceeding or asserting
any defense of invalidity or unreasonableness of such decision, proceeding,
determinations or actions taken.
(Measure L § 7, 1995)
(a)
If the action of the city council on any such application is to direct
the issuance of the license, or to approve the transfer of an existing
license, the city manager shall in writing issue or transfer the license
and any other permits so authorized, in a form as approved by the
city attorney, upon the payment of all fees, taxes, and deposits,
require to be paid pursuant to this chapter.
(b)
After a license is issued or transferred, the licensee shall give
written notice to the city manager, within ten days, of any changes
in ownership, officers, directors, partners, shareholders, principals
or joint venturers.
(Measure L § 7, 1995)
Licenses lawfully issued under the provisions of this chapter
shall remain valid until surrendered or revoked pursuant to the provisions
of this chapter. Provided, however, if a licensee has not commenced
doing business operating a gaming club within three years from the
date the license was issued it shall expire and be of no further force
and effect without the necessity of the city taking any action to
revoke it.
(Measure L § 7, 1995)
The city council may by ordinance or resolution prescribe such
fees, charges, assessments or taxes, including but not limited to
a gross receipts tax, on the establishment and operation of gaming
clubs as the city council shall determine appropriate, except to the
extent limited by the city Charter.
(Measure L § 7, 1995)
(a)
It is unlawful for any licensee, owner or employee to engage or persuade any person to participate in a game for the purpose of stimulating play where such person is to receive any reward, whether financial or otherwise, present or promised; or where such reward or revenue is to be diverted to the licensee or an employee except as allowed under subsection (b).
(b)
The licensee may utilize proposition players. A proposition player
must wear a badge at all times identifying the player as an employee
of the licensee. Other than compensation for the time spent in acting
in such activities as an employee of the licensee, no gifts, rewards
or any other thing of value shall be given to the proposition player
by the licensee or any employee.
(Measure L § 7, 1995)
(a)
General.
All licenses and conditions of approval issued pursuant to the
provisions of this chapter shall be subject to modification and/or
revocation in the time and manner set forth in this section.
(b)
Procedure.
If the city manager determines that good cause exists for the
revocation of a license pursuant to the provisions of this chapter,
the city manager, after conducting an investigation, shall issue an
order of revocation. Such order shall state the reasons for its issuance
and that the licensee has thirty days from receipt of the order to
file an appeal with the city council. The order shall become final
on the end of the thirtieth (30th) day following its issuance unless
a written appeal is filed with the city clerk appealing said order.
A final order shall be deemed an order revoking the license to which
it relates. No appeal with reference to an order of revocation shall
be accepted for filing or processed if it is not timely filed, or
if the appealing party fails to pay to the city clerk the filing and
processing fees, as set by city council resolution, prior to or contemporaneously
with the timely filing of the appeal.
(c)
Hearings.
Any appeal relating to an order of revocation shall be heard by the city council at a public hearing, notice of which shall be given in the same manner as stated in Section 11.12.090(b). At the time set for hearing, the city council shall hear the evidence presented by the city manager purporting to show that grounds exist for revocation. The city council shall permit the licensee, and any other interested person, to present such competent evidence as may be relevant to establish or dispute the existence of any contested fact. The burden of proof, by a preponderance of the evidence, shall be upon the city to show the existence of the facts required to justify the revocation.
(d)
Grounds for Revocation.
A license may be revoked if on appeal the city council finds:
(1)
That a licensee violated, or permitted, allowed, or caused the violation
of, any provision of applicable law or any condition of approval imposed
upon the issuance of the license; or
(2)
That a licensee has made any fraudulent statement as to a material
fact on the licensee's application or as to any other information
presented as part of the application process; or
(3)
That a licensee has committed any act which would have constituted
grounds for the denial of an application for a license pursuant to
the provisions of this chapter; or
(4)
That a licensee has failed to timely pay any applicable annual or
gross receipts tax levied, or any filing and processing fee imposed
pursuant to the provisions of this chapter;
(5)
That a licensee has failed to monitor or control its establishment
or site, or persons either directly involved with or associated with
the business, such that criminal activity is occurring in or around
the site, and threatens the health, safety, or general welfare of
the patrons, neighborhood, or community.
(e)
Decision of City Council.
If, based upon the evidence presented, the city council finds
that facts are present which constitute grounds for revocation, the
city council may revoke the license. If the city council finds that
such facts are not present, it shall dismiss the proceeding. In the
alternative, if the council finds that certain facts exist which my
constitute technical grounds for revocation, but are not so egregious
as to justify revocation, the city council may impose a fine not to
exceed two thousand five hundred per incident or amend the conditions
of license approval in any manner as to reasonably promote the public
health, safety or general welfare and compliance with applicable law.
(Measure L § 7, 1995)
(a)
No person shall be employed as a gaming club employee unless he or
she is the holder of a work permit issued by the city. Applicable
regulations for work permit application, issuance, denial and revocation
and a reasonable fee to cover city expenses shall be adopted by resolution
of the city council. All work permits issued by the city shall be
subject to the objections of the State Division of Gambling Control
pursuant to state law.
(b)
A person shall be disqualified from working as a gaming club employee
for any of the following reasons:
(1)
Conviction for any crime punishable as a felony, or a misdemeanor
involving gambling, under the laws of California or of the United
States;
(2)
Conviction for any crime involving dishonesty or moral turpitude
within the ten-year period immediately preceding the submission of
the application, unless he or she has been granted relief pursuant
to Penal Code Section 1203.4a or 1203.45;
(3)
Association with criminal profiteering activity or organized crime,
as defined by Penal Code Section 186.2;
(4)
Contumacious defiance by the employee of any legislative investigatory
body, or other official investigatory body of any state or of the
United States, when that body is engaged in the investigation of crime
relating to gambling; official corruption related to gambling activities;
or criminal profiteering activity or organized crime, as defined by
Section 186.2 of the Penal Code;
(5)
The person is under twenty-one years of age.
(c)
Employment by a licensee of a disqualified person as a gambling club
employee shall be grounds for license revocation if the licensee had
knowledge of the basis for disqualification or failed to exercise
reasonable care in ascertaining such disqualification.
(d)
It is unlawful for any licensee or employee thereof to engage in
the lending of money, chips, tokens or anything of value, either real
or promised, to any person for the purpose of allowing that person
to eat, drink or participate in a game.
(Measure L § 7, 1995)
Patron and community security and safety is of the utmost importance
in the establishment and operation of gaming clubs. The following
safety and security rules have the force of law, and any violation
thereof shall be considered a ground for license revocation, as well
as criminal penalties as provided for in this municipal code.
(1)
No person under the age of twenty-one years shall be permitted to
enter a gaming club as a patron. Gaming club entrances shall be designed
so as to easily facilitate the review of patrons' proof of age, and
an employee shall be designated to perform this task during business
hours.
(2)
No person who is visibly intoxicated or under the influence of drugs
shall be allowed to participate in any game.
(3)
All gaming clubs shall be open for inspection to the city manager,
or his or her designee, at any time, without the necessity for a search
warrant.
(4)
Rules of play for all games played in a gaming club shall first be
filed with the city manager. No game shall be played until its rules
are so filed and are conspicuously posted in the gaming club and made
available to the patrons in written form.
(5)
Doors, screens, or other obstructions of any kind shall not be placed
so as to conceal tables at which games are played, or so as to conceal
the players in a game.
(6)
Gaming clubs shall employ licensed, bonded security guards in a number
and manner so as to ensure excellent security and safety for patrons
and the community at large.
(7)
Parking areas shall be well-lit and in such a configuration as to
be easily viewed and patrolled by security personnel.
(8)
Any security system shall incorporate extensive use of video cameras,
both inside and outside of the facility.
(9)
Security measures appropriate for any individual gaming club shall
be incorporated as conditions of license approval. Notwithstanding
said conditions, it shall be the responsibility of the gaming club
to provide adequate security and the operation of the club shall not
deplete law enforcement resources of the community.
(10)
If the city manager finds that safety and security measures at any
gaming club are inadequate to properly protect the health and safety
of patrons and the community, and if a licensee fails or refuses to
comply with reasonable efforts by city personnel to improve such measures,
the city manager shall issue an order of revocation pursuant to the
provisions of this chapter.
(11)
It shall be unlawful for any person to attempt to gain any unfair
advantage for any player in a game through a fraudulent technique
or mechanical or electrical device. Prohibited cheating techniques
include, but are not limited to, the following examples. It shall
be unlawful for any person as a player or dealer to attempt to deal,
draw, distribute or turn any playing cards other than the top card
of a deck. It shall be unlawful for any person to attempt to prearrange
or to shuffle any playing cards, other than in a random manner. It
shall be unlawful for any person to attempt to alter in any way the
shape, appearance, texture or number of cards in play, or to switch
any card. It shall be unlawful for any person to attempt to use any
apparatus to gain information not available to other players. The
licensee shall have the power to formulate reasonable policies and
procedures to control potential cheating. These policies and procedures
shall be published in the players' house rules.
(12)
Licensees, managers and gaming club employees may play in their own
club. However, they may not play in any game during their work shift
at a time when they are subject to making management decisions which
might affect the outcome of that game.
(Measure L § 7, 1995)
The gaming club shall set the limits, if any, on the amount
any player may wager in any game played in a gaming club. Any limits
shall be prominently displayed. Table limits may be changed with a
one-half hour notice to the patrons.
(Measure L § 7, 1995)
No city council member, the city manager or the chief of police,
or members of their immediate families, may, during his or her term
of service with the city or within twelve months thereafter, acquire
any ownership interest or employment in any gaming club facility,
site or operation.
(Measure L § 7, 1995)
The licensee may eject or exclude from any portion of the gaming
club any individual who the licensee or its agents, employees or managers,
has reason to believe has engaged in or been convicted of bookmaking,
sale of controlled substances, illegal gambling activities, solicitation
for prostitution, cheating, nonpayment of written gaming credit instruments,
or who is drunk, disorderly or underage, or whose presence in or about
gaming clubs would be inimical to the interests of legitimate gaming.
No such ejection or exclusion shall be on the grounds of race, color,
creed or sex.
(Measure L § 7, 1995)
Due to the uncertain and changing nature of gambling regulations
within the state, including but not limited to developing statutory
and case law and Indian gaming operations, there is a need for the
city to possess the flexibility to quickly add to or amend provisions
of this chapter to meet changing circumstances. Therefore, the provisions
of this chapter may be amended or modified by ordinance adopted by
a four-fifths majority of the entire membership of the city council
without submitting said ordinance to a vote of the electorate, except
for the provisions of Sections 1, 2, and any other provisions governing
the location of where gaming clubs can be established, which may only
be amended by an ordinance adopted by the electorate. The provisions
of this section shall not prohibit the voters from enacting any amendment
to this chapter.
(Measure L § 7, 1995)
This Ordinance does not apply to gaming operations conducted
by or gaming facilities owned by the Agua Caliente Band of Cahuilla
Indians when conducted or owned pursuant to the Indian Gaming Regulatory
Act (25 U.S.C. 2701, et seq.).
(Measure L § 7, 1995)
