§ 1339 — Credit

New York § 1339

• Jurisdiction: New York
• Law PML: Racing, Pari-Mutuel Wagering and Breeding Law
• Title 5: Requirements For Conduct and Operation of Gaming
• Art. 13: Destination Resort Gaming

Text

§ 1339. Credit. 1. Except as otherwise provided in this section, no\ngaming facility licensee or any person licensed under this article, and\nno person acting on behalf of or under any arrangement with a gaming\nfacility licensee or other person licensed under this article, shall:\n (a) Cash any check, make any loan, or otherwise provide or allow to\nany person any credit or advance of anything of value or which\nrepresents value to enable any person to take part in gaming activity as\na player; or\n (b) Release or discharge any debt, either in whole or in part, or make\nany loan which represents any losses incurred by any player in gaming\nactivity, without maintaining a written record thereof in accordance\nwith the rules of the commission.\n 2. No gaming facility licensee or any person licensed under this\narticle, and no person acting on behalf of or under any arrangement with\na gaming facility licensee or other person licensed under this article,\nmay accept a check, other than a recognized traveler's check or other\ncash equivalent from any person to enable such person to take part in\ngaming activity as a player, or may give cash or cash equivalents in\nexchange for such check unless:\n (a) The check is made payable to the gaming facility licensee;\n (b) The check is dated, but not postdated;\n (c) The check is presented to the cashier or the cashier's\nrepresentative at a location in the gaming facility approved by the\ncommission and is exchanged for cash or slot tokens which total an\namount equal to the amount for which the check is drawn, or the check is\npresented to the cashier's representative at a gaming table in exchange\nfor chips which total an amount equal to the amount for which the check\nis drawn; and\n (d) The regulations concerning check cashing procedures are observed\nby the gaming facility licensee and its employees and agents. Nothing in\nthis subdivision shall be deemed to preclude the establishment of an\naccount by any person with a gaming facility licensee by a deposit of\ncash, recognized traveler's check or other cash equivalent, or a check\nwhich meets the requirements of subdivision seven of this section, or to\npreclude the withdrawal, either in whole or in part, of any amount\ncontained in such account.\n 3. When a gaming facility licensee or other person licensed under this\narticle, or any person acting on behalf of or under any arrangement with\na gaming facility licensee or other person licensed under this article,\ncashes a check in conformity with the requirements of subdivision two of\nthis section, the gaming facility licensee shall cause the deposit of\nsuch check in a bank for collection or payment, or shall require an\nattorney or casino key employee with no incompatible functions to\npresent such check to the drawer's bank for payment, within:\n (a) seven calendar days of the date of the transaction for a check in\nan amount of one thousand dollars or less;\n (b) fourteen calendar days of the date of the transaction for a check\nin an amount greater than one thousand dollars but less than or equal to\nfive thousand dollars; or\n (c) forty-five calendar days of the date of the transaction for a\ncheck in an amount greater than five thousand dollars.\n Notwithstanding the foregoing, the drawer of the check may redeem the\ncheck by exchanging cash, cash equivalents, chips, or a check which\nmeets the requirements of subdivision seven of this section in an amount\nequal to the amount for which the check is drawn; or he or she may\nredeem the check in part by exchanging cash, cash equivalents, chips, or\na check which meets the requirements of subdivision seven of this\nsection and another check which meets the requirements of subdivision\ntwo of this section for the difference between the original check and\nthe cash, cash equivalents, chips, or check tendered; or he or she may\nissue one check which meets the requirements of subdivision two of this\nsection in an amount sufficient to redeem two or more checks drawn to\nthe order of the gaming facility licensee. If there has been a partial\nredemption or a consolidation in conformity with the provisions of this\nsubdivision, the newly issued check shall be delivered to a bank for\ncollection or payment or presented to the drawer's bank for payment by\nan attorney or casino key employee with no incompatible functions within\nthe period herein specified. No gaming facility licensee or any person\nlicensed or registered under this article, and no person acting on\nbehalf of or under any arrangement with a gaming facility licensee or\nother person licensed under this article, shall accept any check or\nseries of checks in redemption or consolidation of another check or\nchecks in accordance with this subdivision for the purpose of avoiding\nor delaying the deposit of a check in a bank for collection or payment\nor the presentment of the check to the drawer's bank within the time\nperiod prescribed by this subdivision.\n In computing a time period prescribed by this subdivision, the last\nday of the period shall be included unless it is a Saturday, Sunday, or\na state or federal holiday, in which event the time period shall run\nuntil the next business day.\n 4. No gaming facility licensee or any other person licensed or\nregistered under this article, or any other person acting on behalf of\nor under any arrangement with a gaming facility licensee or other person\nlicensed or registered under this article, shall transfer, convey, or\ngive, with or without consideration, a check cashed in conformity with\nthe requirements of this section to any person other than:\n (a) The drawer of the check upon redemption or consolidation in\naccordance with subdivision three of this section;\n (b) A bank for collection or payment of the check;\n (c) A purchaser of the gaming facility license as approved by the\ncommission; or\n (d) An attorney or casino key employee with no incompatible functions\nfor presentment to the drawer's bank.\n The limitation on transferability of checks imposed herein shall apply\nto checks returned by any bank to the gaming facility licensee without\nfull and final payment.\n 5. No person other than a casino key employee licensed under this\narticle or a gaming employee registered under this article may engage in\nefforts to collect upon checks that have been returned by banks without\nfull and final payment, except that an attorney-at-law representing a\ngaming facility licensee may bring action for such collection.\n 6. Notwithstanding the provisions of any law to the contrary, checks\ncashed in conformity with the requirements of this article shall be\nvalid instruments, enforceable at law in the courts of this state. Any\ncheck cashed, transferred, conveyed or given in violation of this\narticle shall be invalid and unenforceable for the purposes of\ncollection but shall be included in the calculation of gross gaming\nrevenue.\n 7. Notwithstanding the provisions of subdivision two of this section\nto the contrary, a gaming facility licensee may accept a check from a\nperson to enable the person to take part in gaming activity as a player,\nmay give cash or cash equivalents in exchange for such a check, or may\naccept a check in redemption or partial redemption of a check issued in\naccordance with subdivision two of this section, provided that:\n (a) (1) The check is issued by a gaming facility licensee, is made\npayable to the person presenting the check, and is issued for a purpose\nother than employment compensation or as payment for goods or services\nrendered;\n (2) The check is issued by a banking institution which is chartered in\na country other than the United States on its account at a federally\nchartered or state-chartered bank and is made payable to "cash,"\n"bearer," a gaming facility licensee, or the person presenting the\ncheck;\n (3) The check is issued by a banking institution which is chartered in\nthe United States on its account at another federally chartered or\nstate-chartered bank and is made payable to "cash," "bearer," a gaming\nfacility licensee, or the person presenting the check;\n (4) The check is issued by a slot system operator or pursuant to an\nannuity jackpot guarantee as payment for winnings from a multi-casino\nprogressive slot machine system jackpot; or\n (5) The check is issued by an entity that holds a gaming facility\nlicense in any jurisdiction, is made payable to the person presenting\nthe check, and is issued for a purpose other than employment\ncompensation or as payment for goods or services rendered;\n (b) The check is identifiable in a manner approved by the commission\nas a check authorized for acceptance pursuant to paragraph (a) of this\nsubdivision;\n (c) The check is dated, but not postdated;\n (d) The check is presented to the cashier or the cashier's\nrepresentative by the original payee and its validity is verified by the\ndrawer in the case of a check drawn pursuant to subparagraph one of\nparagraph (a) of this subdivision, or the check is verified in\naccordance with regulations promulgated under this article in the case\nof a check issued pursuant to subparagraph two, three, four or five of\nparagraph (a) of this subdivision; and\n (e) The regulations concerning check-cashing procedures are observed\nby the gaming facility licensee and its employees and agents. No gaming\nfacility licensee shall issue a check for the purpose of making a loan\nor otherwise providing or allowing any advance or credit to a person to\nenable the person to take part in gaming activity as a player.\n 8. Notwithstanding the provisions of subdivisions two and three of\nthis section to the contrary, a gaming facility licensee may, at a\nlocation outside the gaming facility, accept a personal check or checks\nfrom a person for up to five thousand dollars in exchange for cash or\ncash equivalents, and may, at such locations within the gaming facility\nas may be permitted by the commission, accept a personal check or checks\nfor up to five thousand dollars in exchange for cash, cash equivalents,\ntokens, chips, or plaques to enable the person to take part in gaming\nactivity as a player, provided that:\n (a) The check is drawn on the patron's bank or brokerage cash\nmanagement account;\n (b) The check is for a specific amount;\n (c) The check is made payable to the gaming facility licensee;\n (d) The check is dated but not post-dated;\n (e) The patron's identity is established by examination of one of the\nfollowing: valid credit card, driver's license, passport, or other form\nof identification credential which contains, at a minimum, the patron's\nsignature;\n (f) The check is restrictively endorsed "For Deposit Only" to the\ngaming facility licensee's bank account and deposited on the next\nbanking day following the date of the transaction;\n (g) The total amount of personal checks accepted by any one licensee\npursuant to this subdivision that are outstanding at any time, including\nthe current check being submitted, does not exceed five thousand\ndollars;\n (h) The gaming facility licensee has a system of internal controls in\nplace that will enable it to determine the amount of outstanding\npersonal checks received from any patron pursuant to this subdivision at\nany given point in time; and\n (i) The gaming facility licensee maintains a record of each such\ntransaction in accordance with regulations established by the\ncommission.\n 9. A person may request the commission to put that person's name on a\nlist of persons to whom the extension of credit by a gaming facility as\nprovided in this section would be prohibited by submitting to the\ncommission the person's name, address, and date of birth. The person\ndoes not need to provide a reason for this request. The commission shall\nprovide this list to the credit department of each gaming facility;\nneither the commission nor the credit department of a gaming facility\nshall divulge the names on this list to any person or entity other than\nthose provided for in this subdivision. If such a person wishes to have\nthat person's name removed from the list, the person shall submit this\nrequest to the commission, which shall so inform the credit departments\nof gaming facilities no later than three days after the submission of\nthe request.\n