§ 195-C — Persons operating games; equipment; expenses; compensation

§ 195-c. Persons operating games; equipment; expenses; compensation.\n1. No person shall operate any game of chance under any license issued\nunder this article except a bona fide member of the authorized\norganization to which the license is issued, or a bona fide member of an\norganization or association which is an auxiliary to the licensee or a\nbona fide member of an organization or association of which such\nlicensee is an auxiliary or a bona fide member of an organization or\nassociation which is affiliated with the licensee by being, with it,\nauxiliary to another organization or association. Nothing herein shall\nbe construed to limit the number of games of chance licensees for whom\nsuch persons may operate games of chance nor to prevent non-members from\nassisting the licensee in any activity other than managing or operating\ngames. No game of chance shall be conducted with any equipment except\nsuch as shall be owned or leased by the authorized organization so\nlicensed or used without payment of any compensation therefor by the\nlicensee. However, in no event shall bell jar tickets be transferred\nfrom one authorized organization to another, with or without payment of\nany compensation thereof. The head or heads of the authorized\norganization shall upon request certify, under oath, that the persons\noperating any game of chance are bona fide members of such authorized\norganization, auxiliary or affiliated organization. Upon request by an\nofficer or the department any such person involved in such games of\nchance shall certify that they have no criminal record. No items of\nexpense shall be incurred or paid in connection with the conducting of\nany game of chance pursuant to any license issued under this article\nexcept those that are reasonable and are necessarily expended for games\nof chance supplies and equipment, prizes, security personnel, stated\nrental if any, bookkeeping or accounting services according to a\nschedule of compensation prescribed by the commission, janitorial\nservices and utility supplies if any, and license fees, and the cost of\nbus transportation, if authorized by such clerk or department. No\ncommission, salary, compensation, reward or recompense shall be paid or\ngiven to any person for the sale or assisting with the sale of raffle\ntickets.\n 2. For the purpose of the sale of tickets for the game of raffle, the\nterm "operate" shall not include the sale of such tickets by persons of\nlineal or collateral consanguinity to members of an authorized\norganization licensed to conduct a raffle.\n 3. Each electronic bell jar vending machine that has been approved by\nthe commission pursuant to paragraph (b) of subdivision nine of section\none hundred eighty-eight-a of this article shall do the following:\n (a) read a barcode or similar form of encryption or marking on the\npre-printed bell jar ticket;\n (b) reveal results;\n (c) verify if a bell jar ticket is redeemable for a prize;\n (d) electronically aggregate winning prizes for continued play;\n (e) produce a voucher for prize redemption or proof of purchase;\n (f) track the sales of tickets and any other information as required\nby the commission and report such sales and other information to the\ncommission;\n (g) prohibit spinning reels or other representations or audiovisual\nfeatures that mimic a video lottery terminal or slot machine;\n (h) prohibit any electronic user interface that mimics a video slot\nmachine;\n (i) prohibit free plays, bonus games, multipliers, jackpots; provided,\nhowever, that for purposes of this paragraph, the prohibition on\n"jackpots" shall not include prizes that may be won on the bell jar\nticket itself, subject to limitations set forth in regulations\npromulgated by the commission, discounts, promotions, special offers, or\nsimilar incentives to initiate or prolong player engagement;\n (j) prohibit any feature that simulates skill or allows player input\nto influence the outcome of a predetermined result;\n (k) prohibit the display of near-miss outcomes that may mislead a\nplayer into believing a win was narrowly missed; and\n (l) limit the speed of play to prevent rapid successive wagering as\nrequired by regulations promulgated by the commission.\n 4. The following information shall be displayed by each electronic\nbell jar vending machine:\n (a) the total number of tickets in each deal;\n (b) the price of each ticket;\n (c) the number and amount of prizes in each deal;\n (d) the number of winners per ticket and its respective winning\nnumbers or symbols;\n (e) the name of the game;\n (f) the name or logo of the manufacturer of the tickets and the\nelectronic bell jar vending machine;\n (g) the compulsive gambling hotline telephone number for the state of\nNew York; and\n (h) notification that only individuals eighteen years of age or older\nmay use an electronic bell jar vending machine.\n 5. If a voucher is produced by an electronic bell jar vending machine\nfor prize redemption, the following information shall appear on such\nvoucher:\n (a) the aggregate prize amount payable to the player;\n (b) the device number or other identification method for the vending\nmachine that produced such voucher;\n (c) the date and time that such voucher was printed;\n (d) the sequential number or other identification method of such\nvoucher;\n (e) an identification number, barcode or similar form of encryption\nthat may be used to validate the prize amount payable to the player; and\n (f) the period of time during which unused tickets or prize amounts\nmust be claimed.\n 6. (a) For the purposes of this subdivision, the following terms shall\nhave the following meanings:\n (i) "Active local member" shall mean an individual who participates in\nthe activities of an authorized organization and resides within the\ncounty where the authorized organization is located or an adjoining\ncounty, as defined by rules promulgated by the commission.\n (ii) "Existing authorized organization" shall mean an authorized\norganization that was licensed to conduct games of chance prior to the\neffective date of this subdivision.\n (iii) "New authorized organization" shall mean an authorized\norganization that is first licensed to conduct games of chance on or\nafter the effective date of this subdivision.\n (iv) "Gaming facility" shall mean any commercial casino, video lottery\nterminal facility, or tribal gaming facility operating pursuant to state\nor federal law. Locations of such facilities shall be those identified\nby the commission.\n (b) The maximum number of electronic bell jar vending machines that an\nexisting authorized organization may operate shall be determined based\nupon the number of its active local members, as follows:\n (i) An existing authorized organization with fewer than fifty active\nlocal members may operate a maximum number of one electronic bell jar\nvending machine;\n (ii) An existing authorized organization with fifty or more but fewer\nthan one hundred active local members may operate a maximum of two\nelectronic bell jar vending machines;\n (iii) An existing authorized organization with one hundred or more\nactive local members but fewer than two hundred active local members may\noperate a maximum of three electronic bell jar vending machines;\n (iv) An existing authorized organization with two hundred or more but\nfewer than three hundred active local members may operate a maximum of\nfour electronic bell jar vending machines; and\n (v) An existing authorized organization with three hundred or more\nactive local members may operate a maximum of five electronic bell jar\nvending machines.\n (c) A new authorized organization may operate a maximum of one\nelectronic bell jar vending machine.\n (d) (i) For any authorized organization at a premises located within\nfifteen miles of any gaming facility, the maximum number of electronic\nbell jar vending machines that may be operated shall be one,\nnotwithstanding the provisions of paragraph (b) of this subdivision;\nprovided however, that this limitation shall not apply to gaming\nfacilities located within cities with a population of one million or\nmore as of the latest federal decennial census.\n (ii) For any authorized organization at a premises located more than\nfifteen miles but not more than twenty-five miles from any gaming\nfacility, the maximum number of electronic bell jar vending machines\nthat may be operated shall be three, notwithstanding the provisions of\nparagraph (b) of this subdivision.\n (iii) In cities with a population of one million or more as of the\nlatest federal decennial census, the following geographic considerations\nshall apply, notwithstanding any other provision of this paragraph or\nparagraph (b) of this subdivision:\n For any authorized organization at a premises located within two\nthousand five hundred feet of any gaming facility, the maximum number of\nelectronic bell jar vending machines that may be operated shall be one.\nThe commission shall establish procedures for measuring such distance.\nFor any authorized organization at a premises located more than two\nthousand five hundred feet but not more than one mile from any gaming\nfacility, the maximum number of electronic bell jar vending machines\nthat may be operated shall be one for new authorized organizations. For\nexisting authorized organizations within this zone, the maximum number\nof electronic bell jar vending machines shall be two, provided that the\ncommission, in authorizing such machines, considers local market\nconditions and the objectives of preventing market oversaturation. For\nany authorized organization at a premises located more than one mile\nfrom any gaming facility, the maximum number of electronic bell jar\nvending machines shall be determined in accordance with paragraphs (b)\nand (c) of this subdivision, provided that the commission shall retain\nthe discretion to impose stricter limitations based on local density of\nauthorized organizations operating such machines, potential impact on\nexisting gaming facilities, and other local market conditions specific\nto such city, consistent with the objectives set forth in paragraph (e)\nof this subdivision. The commission shall, by rule or regulation,\nfurther define the methodology for assessing local density and market\nconditions within such cities and may establish specific zones or areas\nwhere the placement of electronic bell jar vending machines is further\nlimited or requires enhanced review, to ensure the responsible\nintegration of such charitable gaming opportunities.\n (iv) The commission shall have the authority to establish, by rule or\nregulation, specific proximity zones around gaming facilities and to\nmodify the limitations provided in subparagraphs (i), (ii), and (iii) of\nthis paragraph based upon local market conditions, potential impact on\nexisting gaming facilities, and the need to prevent loss of employment\nat such facilities, provided that any such modification shall be\nconsistent with the objective of supporting charitable fundraising while\nmaintaining the existing gaming landscape and preventing market\noversaturation; provided however, that any such modification shall\nconstitute only a reduction of the thresholds established by this\nsubdivision.\n (e) (i) Notwithstanding any other provision of this subdivision, the\ncommission shall have the discretion to determine the number of\nelectronic bell jar vending machines that may be operated by any\nauthorized organization, and the location of such machines; provided\nhowever, that such number of machines shall not exceed the limits\nestablished in this subdivision. Such discretion shall be exercised to\nensure that the introduction and operation of electronic bell jar\nvending machines occurs exclusively to the fundraising capabilities of\nlegitimate charitable organizations while maintaining the stability of\nexisting regulated gaming sectors and revenue to the state, and avoiding\nany loss of employment at existing gaming facilities.\n (ii) The commission may require periodic reporting or verification of\nactive local membership to ensure ongoing compliance with eligibility\nrequirements and may take enforcement action in cases of material\nmisrepresentation or sustained noncompliance. The commission may also\ntake into consideration reasonable and periodic fluctuations in\nmembership to avoid requiring the removal or retirement of electronic\nbell jar vending machines due to temporary or minimal decreases in\nmembership.\n (iii) The commission shall deny, revoke, or limit the number of\nelectronic bell jar vending machines an authorized organization may\noperate if it determines that such organization has been established,\nstructured, or is being utilized, directly or indirectly, to obtain a\ngreater number of machines than otherwise would be permitted. This\nincludes, but is not limited to, the creation of subsidiary entities,\nshell organizations, or any other arrangement where the facts and\ncircumstances indicate an intent to circumvent the limitations set forth\nin this subdivision. The commission is empowered to scrutinize the\ngovernance, operational control, and financial interdependence of\norganizations to make such determinations.\n (iv) The co-siting or joint housing of multiple authorized\norganizations at a single premises or contiguous premises for the\nprimary purpose of increasing the aggregate number of electronic bell\njar vending machines at such location beyond what would otherwise be\npermitted for a single authorized organization operating at such\npremises is prohibited, unless explicitly authorized by the commission\nupon a finding that such arrangement is consistent with the public\ninterest and the objectives of this article. The commission shall\npromulgate rules and regulations to effectuate this provision,\nconsidering factors such as shared operational control, membership\noverlap, and the primary purpose of the co-siting arrangement.\n 7. The commission shall promulgate such rules and regulations as may\nbe necessary for the implementation of electronic bell jar vending\nmachine gaming in accordance with the provisions of this section,\nincluding but not limited to the verification of active local membership\nnumbers and assessment of proximity to gaming facilities.\n