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 chapter, 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 chapter
is to foster and support such worthy causes and undertakings; and that the
mandate of § 9 of Article I of the State Constitution, as amended,
and of Article 9-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.
As used in this chapter, the following terms shall have the following
meanings:
AUTHORIZED ORGANIZATION
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
one or more of the lawful purposes as defined in this chapter, 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 chapter for a period of three years immediately prior to applying
for a license under this chapter. 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 75% of its activities to other
purposes set forth in this chapter. No political party shall be deemed an
"authorized organization."
AUTHORIZED SUPPLIER OF GAMES OF CHANCE EQUIPMENT
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.
BOARD
The New York State Racing and Wagering Board.
GAMES OF CHANCE
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 14-H of the General Municipal
Law, and also not including slot machines, bookmaking and policy or numbers
games, as defined in § 225.00 of the Penal Law. No "game of chance"
shall involve wagering of money by one player against another player.
LAWFUL PURPOSES
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.
NET LEASE
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 noncommercial or nonprofit 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.
NET PROCEEDS
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.
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.
ONE OCCASION
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
$1,000.
PRIZE
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 $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 definition, the value of a "prize" which consists
of merchandise shall be the actual cost of the item of such merchandise.
The unauthorized conduct of a game of chance shall constitute and be
punishable as a misdemeanor.
To conduct games of chance, each applicant for a license shall, after
obtaining an identification number from the Board, file with the City Clerk
a written application therefor in a form to be prescribed by the Board, 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
such department to determine whether or not it is a bona fide authorized organization.
B. 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.
C. 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 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 this chapter otherwise provided;
and such other information as shall be prescribed by such rules and regulations
of the Board.
(1) 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 chapter.
(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 City Clerk 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 to the specifications contained in the definition of "authorized organization" set forth in §
157-2 and such other information as shall be prescribed by the Board.
No application for the issuance of a license to an authorized organization
shall be denied by the City Clerk 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.
Any license issued under this chapter may be amended upon application
made to the City 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.
The City Clerk 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 chapter, and the City Clerk and the Board shall have the
power and authority to temporarily suspend any license issued by the City
Clerk pending a hearing and after notice and hearing, the City Clerk and the
Board may suspend or revoke same, and additionally, impose a fine not exceeding
$1,000 for violation of any such provisions, 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 City Clerk shall make an on-site inspection during the
conduct of all games of chance licenses pursuant to this chapter.
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.
The City Clerk may promulgate such rules and regulations as deemed necessary
for the proper implementation and enforcement of this chapter and which are
not inconsistent with those rules and regulations promulgated by the Board.
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 60 square
feet in area may be displayed on or adjacent to the premises 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 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, 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.
Any applicant for or holder of any license issued or to be issued under
this chapter aggrieved by any action of the City Clerk may appeal to the Board
from the determination of said City Clerk by filing with the City Clerk a
written notice of appeal within 30 days after the determination or action
appealed from, and upon the hearing of such appeal, the evidence, if any,
taken before the City 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 Board upon said appeal shall be binding upon such department
and all parties to said appeal.
Any person, association, corporation or organization who or which shall make any material false statement in any application for any license authorized to be issued under this chapter; 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 §
157-9B; 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; 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; or 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 chapter, shall be guilty of a misdemeanor and shall forfeit any license issued under this chapter and be ineligible to apply for a license under this chapter for at least a year thereafter.
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 in accordance with a valid license issued
pursuant to this chapter or on behalf of a bona fide organization of persons
60 years of age or over, commonly referred to as "senior citizens," solely
for the purpose of amusement and recreation of its members where:
A. The organization has applied for and received an identification
number from the Board;
B. No player or other person furnishes anything of value
for the opportunity to participate;
C. The prizes awarded or to be awarded are nominal;
D. No person other than a bona fide active member of the
organization participates in the conduct of the games; and
E. No person is paid for conducting or assisting in the
conduct of the game or games.