Chapter 228 Oregon Laws 2001
AN ACT
HB 2009
Relating to charitable
gaming; amending ORS 167.117, 167.118, 464.310, 464.340 and 464.380.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 167.117 is amended to read:
167.117. As used in ORS 167.117 to 167.164 and 464.270 to
464.530, unless the context requires otherwise:
(1) “Bingo or lotto” means a game, played with cards
bearing lines of numbers, in which a player covers or uncovers a number
selected from a container, and which is won by a player who is present during
the game and who first covers or uncovers the selected numbers in a designated
combination, sequence or pattern.
(2) “Bookmaker” means a person who unlawfully accepts a bet
from a member of the public upon the outcome of a future contingent event and
who charges or accepts a percentage, fee or vigorish on the wager.
(3) “Bookmaking” means promoting gambling by unlawfully
accepting bets from members of the public as a business, rather than in a
casual or personal fashion, upon the outcomes of future contingent events.
(4) “Casino game” means any of the traditional
gambling-based games commonly known as dice, faro, monte, roulette, fan-tan,
twenty-one, blackjack, Texas hold-’em, seven-and-a-half, big injun, klondike,
craps, poker, chuck-a-luck, Chinese chuck-a-luck (dai shu), wheel of fortune,
chemin de fer, baccarat, pai gow, beat the banker, panquinqui, red dog,
acey-deucey, or any other gambling-based game similar in form or content.
(5)(a) “Charitable, fraternal or religious organization”
means any person that is:
(A) Organized and existing for charitable, benevolent,
eleemosynary, humane, patriotic, religious, philanthropic, recreational,
social, educational, civic, fraternal or other nonprofit purposes; and
(B) Exempt from payment of federal income taxes because of
its charitable, fraternal or religious purposes.
(b) The fact that contributions to an organization
profiting from a contest of chance do not qualify for a charitable deduction
for tax purposes or that the organization is not otherwise exempt from payment
of federal income taxes pursuant to the Internal Revenue Code of 1986, as
amended, constitutes prima facie evidence that the organization is not a bona
fide charitable, fraternal or religious organization.
(6) “Contest of chance” means any contest, game, gaming
scheme or gaming device in which the outcome depends in a material degree upon
an element of chance, notwithstanding that skill of the contestants may also be
a factor therein.
(7) “Gambling” means that a person stakes or risks
something of value upon the outcome of a contest of chance or a future
contingent event not under the control or influence of the person, upon an
agreement or understanding that the person or someone else will receive something
of value in the event of a certain outcome. “Gambling” does not include:
(a) Bona fide business transactions valid under the law of
contracts for the purchase or sale at a future date of securities or
commodities, and agreements to compensate for loss caused by the happening of
chance, including but not limited to contracts of indemnity or guaranty and
life, health or accident insurance.
(b) Engaging in contests of chance under the following
conditions:
(A) The contest is played for some token other than money;
(B) An individual contestant may not purchase more than
$100 worth of tokens for use in the contest during any 24-hour period;
(C) The tokens may be exchanged only for property other
than money;
(D) Except when the tokens are exchanged for a beverage or
merchandise to be consumed on the premises, the tokens are not redeemable on
the premises where the contest is conducted or within 50 miles thereof; and
(E) Except for charitable, fraternal or religious
organizations, no person who conducts the contest as owner, agent or employee
profits in any manner from operation of the contest.
(c) Social games.
(d) Bingo, lotto or raffle games or Monte Carlo events
operated in compliance with ORS 167.118, by a charitable, fraternal or
religious organization licensed pursuant to ORS 167.118, 464.250 to 464.380 and
464.420 to 464.530 to operate such games.
(8) “Gambling device” means any device, machine,
paraphernalia or equipment that is used or usable in the playing phases of
unlawful gambling, whether it consists of gambling between persons or gambling
by a person involving the playing of a machine. Lottery tickets, policy slips
and other items used in the playing phases of lottery and policy schemes are
not gambling devices within this definition. Amusement devices other than gray
machines, that do not return to the operator or player thereof anything but
free additional games or plays, shall not be considered to be gambling devices.
(9)(a) “Gray machine” means any electrical or
electro-mechanical device, whether or not it is in working order or some act of
manipulation, repair, adjustment or modification is required to render it
operational, that:
(A) Awards credits or contains or is readily adaptable to
contain, a circuit, meter or switch capable of removing or recording the
removal of credits earned by a player, other than removal during the course of
continuous play; or
(B) Plays, emulates or simulates a casino game, bingo or
keno.
(b) A device is no less a gray machine because, apart from
its use or adaptability as such, it may also sell or deliver something of value
on the basis other than chance.
(c) “Gray machine” does not include:
(A) Any device commonly known as a personal computer,
including any device designed and marketed solely for home entertainment, when
used privately and not for a fee and not used to facilitate any form of
gambling;
(B) Any device operated under the authority of the Oregon
State Lottery;
(C) Any device manufactured or serviced but not operated in
Oregon by a manufacturer who has been approved under rules adopted by the
Oregon State Lottery Commission;
(D) A slot machine; or
(E) Any device authorized by the Oregon State Lottery
Commission for:
(i) Display and demonstration purposes only at trade shows;
or
(ii) Training and testing purposes by the Department of
State Police.
(10) “Handle” means the total amount of money and other
things of value bet on the bingo, lotto or raffle games, the value of raffle
chances sold or the total amount collected from the sale of imitation money
during Monte Carlo events.
(11) “Lottery” or “policy” means an unlawful gambling
scheme in which:
(a) The players pay or agree to pay something of value for
chances, represented and differentiated by numbers or by combinations of
numbers or by some other medium, one or more of which chances are to be
designated the winning ones; and
(b) The winning chances are to be determined by a drawing
or by some other method; and
(c) The holders of the winning chances are to receive
something of value.
(12) “Monte Carlo event” means a gambling event at which
wagers are placed with imitation money upon contests of chance in which players
compete against the house. As used in this subsection, “imitation money”
includes imitation currency, chips or tokens.
(13) “Numbers scheme or enterprise” means a form of lottery
in which the winning chances or plays are not determined upon the basis of a
drawing or other act on the part of persons conducting or connected with the
scheme, but upon the basis of the outcome of a future contingent event
otherwise unrelated to the particular scheme.
(14) “Operating expenses” means those expenses incurred in
the operation of a bingo, lotto or raffle game [and related concessions], including only the following:
(a) Salaries, employee benefits, workers’ compensation
coverage and state and federal employee taxes;
(b) Security services;
(c) Legal and accounting services;
(d) Supplies and inventory;
(e) Rent, repairs, utilities, water, sewer and garbage;
(f) Insurance;
(g) Equipment;
(h) Printing and promotions;
(i) Postage and shipping;
(j) Janitorial services and supplies; and
(k) Leasehold improvements.
(15) “Player” means a person who engages in any form of
gambling solely as a contestant or bettor, without receiving or becoming
entitled to receive any profit therefrom other than personal gambling winnings,
and without otherwise rendering any material assistance to the establishment,
conduct or operation of the particular gambling activity. A person who gambles at
a social game of chance on equal terms with the other participants therein is a
person who does not otherwise render material assistance to the establishment,
conduct or operation thereof by performing, without fee or remuneration, acts
directed toward the arrangement or facilitation of the game, such as inviting
persons to play, permitting the use of premises therefor and supplying cards or
other equipment used therein. A person who engages in bookmaking is not a
player.
(16) “Profits from unlawful gambling” means that a person,
acting other than solely as a player, accepts or receives money or other
property pursuant to an agreement or understanding with another person whereby
the person participates or is to participate in the proceeds of unlawful gambling.
(17) “Promotes unlawful gambling” means that a person,
acting other than solely as a player, engages in conduct that materially aids
any form of unlawful gambling. Conduct of this nature includes, but is not
limited to, conduct directed toward the creation or establishment of the
particular game, contest, scheme, device or activity involved, toward the
acquisition or maintenance of premises, paraphernalia, equipment or apparatus
therefor, toward the solicitation or inducement of persons to participate
therein, toward the conduct of the playing phases thereof, toward the
arrangement of any of its financial or recording phases or toward any other
phase of its operation. A person promotes unlawful gambling if, having control
or right of control over premises being used with the knowledge of the person
for purposes of unlawful gambling, the person permits the unlawful gambling to
occur or continue or makes no effort to prevent its occurrence or continuation.
(18) “Raffle” means a lottery operated by a charitable,
fraternal or religious organization wherein the players pay something of value
for chances, represented by numbers or combinations thereof or by some other
medium, one or more of which chances are to be designated the winning ones or
determined by a drawing and the player holding the winning chance is to receive
something of value.
(19)(a) “Slot machine” means a gambling device that as a
result of the insertion of a coin or other object operates, either completely
automatically, or with the aid of some physical act by the player, in such a
manner that, depending upon elements of chance, it may eject something of value
or otherwise entitle the player to something of value. A device so constructed
or readily adaptable or convertible to such use is no less a slot machine
because it is not in working order or because some mechanical act of
manipulation or repair is required to accomplish its adaptation, conversion or
workability. Nor is it any less a slot machine because apart from its use or
adaptability as such it may also sell or deliver something of value on the
basis other than chance.
(b) “Slot machine” does not include any device authorized
by the Oregon State Lottery Commission for:
(A) Display and demonstration purposes only at trade shows;
or
(B) Training and testing purposes by the Department of
State Police.
(20) “Social game” means:
(a) A game, other than a lottery, between players in a
private home where no house player, house bank or house odds exist and there is
no house income from the operation of the social game; and
(b) If authorized pursuant to ORS 167.121, a game, other
than a lottery, between players in a private business, private club or place of
public accommodation where no house player, house bank or house odds exist and
there is no house income from the operation of the social game.
(21) “Something of value” means any money or property, any
token, object or article exchangeable for money or property, or any form of
credit or promise directly or indirectly contemplating transfer of money or
property or of any interest therein.
(22) “Trade show” means an exhibit of products and services
that is:
(a) Not open to the public; and
(b) Of limited duration.
(23) “Unlawful” means not specifically authorized by law.
SECTION 2.
ORS 167.118 is amended to read:
167.118. (1) When a charitable, fraternal or religious
organization is licensed by the Department of Justice to conduct bingo, lotto
or raffle games or Monte Carlo events, only the organization itself or an
employee thereof authorized by the department shall receive money or property
or otherwise directly profit from the operation of the games, except that:
(a) The organization operating the games may present a
prize of money or other property to any player not involved in the
administration or management of the games; and
(b) An organization licensed to conduct Monte Carlo events
may contract with a licensed supplier of Monte Carlo event equipment to operate
the event, including the provision of equipment, supplies and personnel,
provided that the licensed supplier is paid a fixed fee to conduct the event
and the imitation money is sold to players by employees or volunteers of the
licensed charitable, fraternal or religious organization.
(2) A charitable, fraternal or religious organization shall
not operate bingo, lotto or raffle games or Monte Carlo events except at such
locations and upon such days and for such periods of time as the department
authorizes pursuant to this section and ORS 464.250 to 464.380, 464.420 and
464.450 to 464.530.
(3)(a) An
organization licensed by the department to operate bingo or lotto games shall
not award a prize exceeding [$1,500] $2,500 in value in any one game. An
organization licensed by the department to operate a Monte Carlo event may not
present any prize of money, or a cash equivalent, to any player.
(b) Notwithstanding
any provision of this chapter to the contrary, a bingo licensee may operate two
games per year with a prize not to exceed $10,000 per game.
(4) Each charitable, fraternal or religious organization
that maintains, conducts or operates any bingo, lotto or raffle game or Monte
Carlo event under license of the department must operate such games in
accordance with rules adopted by the department.
(5) It is unlawful for a licensee to permit the operating
expenses of the games to exceed 18 percent of the annual handle of its bingo,
lotto and raffle operation.
(6) It is unlawful for a charitable, fraternal or religious
organization licensed by the department to operate bingo, lotto or raffle games
if:
(a) The handle of the games and events exceeds $250,000 in
a year; and
(b) The games and events do not generate for the
organization’s purposes, after the cost of prizes and operating expenses are
deducted from the handle, an amount that equals or exceeds five percent of the
handle.
SECTION 3.
ORS 464.310 is amended to read:
464.310. (1) A licensee of the Department of Justice under
ORS 167.117 and 167.118 and this chapter, or an applicant for a license under
ORS 167.118, 464.250 to 464.380, 464.420 and 464.450 to 464.530, without
approval of the department, shall not knowingly permit any person to
participate in the management or operation of any bingo, lotto or raffle game
or Monte Carlo event for which a license from the department is required if
that person:
(a) Has been convicted of or forfeited bond upon, or has
been granted diversion upon a charge involving forgery, theft, willful failure
to make required payments or reports to a government agency at any level, or
filing false reports to such an agency, or of any similar offense, or of
bribing or otherwise unlawfully influencing a public official or employee of
any state or the United States, or of any crime, whether a felony or a
misdemeanor, involving any gambling activity or physical injury to any person,
or involving moral turpitude; or
(b) Has violated, failed to comply with, or refused to
comply with provisions, requirements, conditions, limitations or duties imposed
by ORS 167.118, 464.250 to 464.380, 464.420 and 464.450 to 464.530 or the rules
of the department.
(2) No person other than a member or employee of a licensed
organization, or any other person authorized under the rules of the Department
of Justice, may participate in the management or operation of a licensed bingo,
lotto, raffle or Monte Carlo event operation. No person who participates in the
management or operation of any such bingo, lotto, raffle, Monte Carlo event,
concession or related operation may concurrently participate in the management
or operation of any other operation unless such participation is approved by
the department. The department shall
adopt rules authorizing concurrent participation on a temporary basis in
response to emergency circumstances.
SECTION 4.
ORS 464.380 is amended to read:
464.380. (1) In adopting rules for the licensing of bingo,
lotto[, raffle] or Monte Carlo event
operations, the Department of Justice may impose, to the extent it finds
practicable, more or fewer requirements upon such operations on the basis of
the number of games, [or] the frequency of [raffles or] Monte Carlo events or the
gross income of the operation.
(2) As used in subsection (1) of this section, “gross
income” means the total amount of money or other thing of value bet, less a
deduction therefrom of the amount returned to players as prizes.
SECTION 5.
ORS 464.340 is amended to read:
464.340. [After
January 1, 1988,] The Department of
Justice by rule shall prohibit any licensee from allowing any person to
spend more than 30 hours in any one week administering the licensee’s games, or operating the licensee’s games, or both.
Approved by the Governor May
30, 2001
Filed in the office of
Secretary of State May 30, 2001
Effective date January 1,
2002
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