N.Y. General Municipal Law 189 – Restrictions upon conduct of games of chance
§ 189. Restrictions upon conduct of games of chance. The conduct of games of chance authorized by local law or ordinance shall be subject to the following restrictions irrespective of whether the restrictions are contained in such local law or ordinance, but nothing herein shall be construed to prevent the inclusion within such local law or ordinance of other provisions imposing additional restrictions upon the conduct of such games:
Terms Used In N.Y. General Municipal Law 189
- Authorized games of chance lessor: shall mean an authorized organization which has been granted a lessor's license pursuant to the provisions of this article or a municipality. See N.Y. General Municipal Law 186
- Authorized organization: shall mean and include any bona fide religious or charitable organization or bona fide educational, fraternal or service organization or bona fide organization of veterans or volunteer firefighters, 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 article, 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 article for a period of three years immediately prior to applying for a license under this article. See N.Y. General Municipal Law 186
- Bell jars: shall mean and include those games in which a participant shall draw a card from a jar, vending machine, or other suitable device or container which contains numbers, colors or symbols that are covered and which, when uncovered, may reveal that a prize shall be awarded on the basis of a designated winning number, color or symbol or combination of numbers, colors or symbols. See N.Y. General Municipal Law 186
- Board: shall mean New York state gaming commission created pursuant to section one hundred two of the racing, pari-mutuel wagering and breeding law. See N.Y. General Municipal Law 186
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Games of chance: shall mean and include only the games known as "merchandise wheels" "coin boards" "merchandise boards" "seal cards" "event games" "raffles" and "bell jars" and such other specific games as may be authorized by the board, 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 fourteen-H of this chapter and also not including "bookmaking" "policy or numbers games" and "lottery" as defined in § 225. See N.Y. General Municipal Law 186
- Lawful purposes: shall mean 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 wellbeing, 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. See N.Y. General Municipal Law 186 - Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- License period: shall mean a period of time not to exceed fourteen consecutive hours and, for purposes of the game of chance known as a bell jar and a raffle, "license period" shall mean a period of time running from January first to December thirty-first of each year. See N.Y. General Municipal Law 186
- merchandise board: shall mean a board used in conjunction with bell jar tickets which contains and displays various coins and/or merchandise as prizes. See N.Y. General Municipal Law 186
- Municipality: shall mean any city, town or village within this state. See N.Y. General Municipal Law 186
- Net proceeds: shall mean (a) in relation to the gross receipts from one or more license periods of games of chance, the amount that shall remain after deducting the reasonable sums necessarily and actually expended for supplies and equipment, prizes, security-personnel, 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 clerk or department and (b) in relation to the gross rent received by an authorized games of chance lessor for the use of its premises by a game of chance 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. See N.Y. General Municipal Law 186
- One occasion: shall mean the successive operations of any one single type of game of chance which results in the awarding of a series of prizes amounting to five hundred dollars or four hundred dollars during any one license period, in accordance with the provisions of subdivision eight of section one hundred eighty-nine of this article, as the case may be. See N.Y. General Municipal Law 186
- Operation: shall mean the play of a single type of game of chance necessary to determine the outcome or winners each time wagers are made. See N.Y. General Municipal Law 186
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Premises: shall mean a designated area within a building, hall, tent, or grounds reasonably identified for the conduct of games of chance. See N.Y. General Municipal Law 186
- Raffle: shall mean and include those games of chance in which a participant pays money in return for a ticket or other receipt and in which a prize is awarded on the basis of a winning number or numbers, color or colors, or symbol or symbols designated on the ticket or receipt, determined by chance as a result of:
(a) a drawing from among those tickets or receipts previously sold; or
(b) a random event, the results of which correspond with tickets or receipts previously sold. See N.Y. General Municipal Law 186 - Series of prizes: shall mean the total amount of single prizes minus the total amount of wagers lost during the successive operations of a single type of game of chance, except that for merchandise wheels and raffles, "series of prizes" shall mean the sum of cash and the fair market value of merchandise awarded as single prizes during the successive operations of any single merchandise wheel or raffle. See N.Y. General Municipal Law 186
- Single prize: shall mean the sum of money or fair market value of merchandise or coins awarded to a participant by a games of chance licensee in any one operation of a single type of game of chance in excess of his wager. See N.Y. General Municipal Law 186
1. No person, firm, partnership, corporation or organization, other than a licensee under the provisions of section one hundred ninety-one of this article, shall conduct such game or shall lease or otherwise make available for conducting games of chance premises for any consideration whatsoever, direct or indirect.
2. No game of chance shall be held, operated or conducted on or within any leased premises if 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.
3. No authorized organization licensed under the provisions of this article shall purchase, lease, or receive any supplies or equipment specifically designed or adapted for use in the conduct of games of chance from other than a supplier licensed by the board or from another authorized organization. Lease terms and conditions shall be subject to rules and regulations promulgated by the board. The provisions of this article shall not be construed to authorize or permit an authorized organization to engage in the business of leasing games of chance, supplies, or equipment. Furthermore, no organization shall purchase bell jar tickets, or deals of bell jar tickets from any other person or organization other than those specifically authorized under sections one hundred ninety-five-n and one hundred ninety-five-o of this article.
4. The entire net proceeds of any game of chance shall be exclusively devoted to the lawful purposes of the organization permitted to conduct the same and the net proceeds of any rental derived therefrom shall be exclusively devoted to the lawful purposes of the authorized games of chance lessor.
5. (a) No single prize awarded by games of chance other than raffle shall exceed the sum or value of three hundred dollars, except that for merchandise wheels, no single prize shall exceed the sum or value of two hundred fifty dollars, and for bell jar, no single prize shall exceed the sum or value of one thousand dollars.
(b) No single prize awarded by raffle shall exceed the sum or value of three hundred thousand dollars.
(c) No single wager shall exceed six dollars and for bell jars, coin boards or merchandise boards, no single prize shall exceed one thousand dollars, provided, however, that such limitation shall not apply to the amount of money or value paid by the participant in a raffle in return for a ticket or other receipt.
(d) For coin boards and merchandise boards, the value of a prize shall be determined by the cost of such prize to the authorized organization or, if donated, the fair market value of such prize.
6. (a) No authorized organization shall award a series of prizes consisting of cash or of merchandise with an aggregate value in excess of:
(1) ten thousand dollars during the successive operations of any one merchandise wheel; and
(2) six thousand dollars during the successive operations of any bell jar, coin board or merchandise board.
(b) No series of prizes awarded by raffle shall have an aggregate value in excess of five hundred thousand dollars.
(c) For coin boards and merchandise boards, the value of a prize shall be determined by the cost of such prize to the authorized organization or, if donated, the fair market value of such prize.
7. In addition to merchandise wheels, raffles and bell jars, no more than five other single types of games of chance shall be conducted during any one license period.
8. Except for merchandise wheels and raffles, no series of prizes on any one occasion shall aggregate more than four hundred dollars when the licensed authorized organization conducts five single types of games of chance during any one license period. Except for merchandise wheels, raffles and bell jars, no series of prizes on any one occasion shall aggregate more than five hundred dollars when the licensed authorized organization conducts less than five single types of games of chance, exclusive of merchandise wheels, raffles and bell jars, during any one license period. No authorized organization shall award by raffle prizes with an aggregate value in excess of three million dollars during any one license period.
9. Except for the limitations on the sum or value for single prizes and series of prizes, no limit shall be imposed on the sum or value of prizes awarded to any one participant during any occasion or any license period.
10. No person except a bona fide member of the licensed authorized organization shall participate in the management of such games; no person except a bona fide member of the licensed authorized organization, its auxiliary or affiliated organization, shall participate in the operation of such game, as set forth in section one hundred ninety-five-c of this article.
11. No person shall receive any remuneration for participating in the management or operation of any such game.
12. No authorized organization shall extend credit to a person to participate in playing a game of chance.
13. (a) No game of chance, other than a raffle that complies with paragraph (b) of this subdivision, shall be conducted on other than the premises of an authorized organization or an authorized games of chance lessor.
(b) Raffle tickets may be sold to the public, and a raffle drawing may occur, outside the premises of an authorized organization or an authorized games of chance lessor if such sales occur, or such drawing occurs, in a municipality that:
(1) has passed a local law, ordinance or resolution in accordance with sections one hundred eighty-seven and one hundred eighty-eight of this article approving the conduct of games of chance;
(2) is located in the county in which the municipality issuing the raffle license is located or in a county that is contiguous to the county in which the municipality issuing the raffle license is located;
(3) has not objected to such sales after the gaming commission gives notice to such municipality of an authorized organization's request to sell such raffle tickets in such municipality; and
(4) has not objected to the location in such municipality that such drawing is proposed to occur, after the commission gives notice to such municipality of an authorized organization's request to conduct such drawing in such municipality. A location of a drawing may be on state-owned property so long as the authorized organization conducting the raffle obtains all required authorizations to do so and complies with this paragraph.
(c) The gaming commission may by regulation prescribe the advance notice an authorized organization must provide to the gaming commission in order to take advantage of the provisions of paragraph (b) of this subdivision, forms in which such a request shall be made and the time period in which a municipality must communicate an objection to the gaming commission.
(d) No sale of raffle tickets shall be made more than one hundred eighty days prior to the date scheduled for the occasion at which the raffle will be conducted.
(e) The winner of any single prize in a raffle shall not be required to be present at the time such raffle is conducted.
13-a. No person licensed to manufacture, distribute, or sell games of chance supplies or equipment, or their agents, shall conduct, participate in, or assist in the conduct of games of chance. Nothing herein shall prohibit a licensed distributor from selling, offering for sale, or explaining a product to an authorized organization or installing or servicing games of chance equipment upon the premises of games of chance licensees.
14. The unauthorized conduct of a game of chance shall constitute and be punishable as a misdemeanor.
15. No coins or merchandise from a coin board or merchandise board shall be redeemable or convertible into cash directly or indirectly by the authorized organization.
16. Notwithstanding any provision of law to the contrary, games known as "raffles", at the discretion of the games of chance licensee, may be purchased via the internet or mobile application with a debit or credit card, upon the account holder's direct consent, provided, however, that the gaming commission shall promulgate any necessary rules and regulations to ensure, to a reasonable degree of certainty that:
(a) the purchase of the raffle ticket is initiated and received or otherwise made in accordance with subdivision thirteen of this section;
(b) purchasers are not less than eighteen years of age; and
(c) the privacy and online security of participants is protected.