Chapter 502 Oregon Laws 2001
AN ACT
SB 755
Relating to Internet
gambling; creating new provisions; amending ORS 167.116 and 167.117; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
Sections 2 to 5 of this 2001 Act are added to and made a part of ORS 167.117 to
167.164.
SECTION 2.
(1) A person engaged in an Internet
gambling business may not knowingly accept, in connection with the
participation of another person in unlawful gambling using the Internet:
(a) Credit, or the
proceeds of credit, extended to or on behalf of such other person, including
credit extended through the use of a credit card;
(b) An electronic funds
transfer or funds transmitted by or through a money transmission business, or
the proceeds of an electronic funds transfer or money transmission service,
from or on behalf of the other person;
(c) Any check, draft or
similar instrument that is drawn by or on behalf of the other person and is
drawn on or payable at or through any financial institution; or
(d) The proceeds of any
other form of financial transaction that involves a financial institution as a
payor or financial intermediary on behalf of or for the benefit of the other
person.
(2) Violation of
subsection (1) of this section is a Class C felony.
SECTION 3.
Notwithstanding any other provision of
law, a creditor, credit card issuer, financial institution, operator of a
terminal at which an electronic funds transfer may be initiated, money
transmission business or any national, regional or local network utilized to
effect a credit transaction, electronic funds transfer or money transmission
service that is not liable under section 2 of this 2001 Act:
(1) May collect on any
debt arising out of activities that are illegal under section 2 of this 2001
Act;
(2) Shall not be deemed
to be participating in any activities that are illegal under section 2 of this
2001 Act by reason of their processing transactions arising out of such
activities or collecting debts arising out of such activities; and
(3) Shall not be liable
under any provision of ORS 166.715 to 166.735 or 646.605 to 646.652 by reason
of their processing transactions arising out of activities that are illegal
under section 2 of this 2001 Act or collecting debts arising out of such
activities.
SECTION 4.
As used in sections 2 and 3 of this 2001
Act:
(1) “Credit” and “credit
card” have the meaning given those terms under the federal Consumer Credit
Protection Act (P.L. 90-321, 82 Stat. 146, 15 U.S.C. 1601).
(2) “Electronic funds
transfer” has the meaning given that term in ORS 293.525.
(3) “Financial
institution” has the meaning given that term in ORS 706.008.
(4) “Money transmission”
has the meaning given that term in ORS 717.200.
SECTION 5.
Sections 2 and 3 of this 2001 Act do not
apply to activities licensed and regulated by the Oregon Racing Commission
under ORS chapter 462.
SECTION 6.
ORS 167.116 is amended to read:
167.116. (1) The Oregon State Lottery Commission shall
adopt rules to carry out the provisions of ORS 167.117 (9)(c)(E) and [(19)(b)] (20)(b).
(2) Devices authorized by the Oregon State Lottery
Commission for the purposes described in ORS 167.117 (9)(c)(E) and [(19)(b)] (20)(b) are exempted from the provisions of 15 U.S.C. 1172.
SECTION 7.
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) “Internet”
means an interactive computer service or system or an information service,
system or access software provider that provides or enables computer access by
multiple users to a computer server and includes, but is not limited to, an
information service, system or access software provider that provides access to
a network system commonly known as the Internet, or any comparable system or
service and also includes, but is not limited to a World Wide Web page,
newsgroup, message board, mailing list or chat area on any interactive computer
service or system or other on-line service.
[(11)] (12) “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)] (13) “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)] (14) “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)] (15) “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)] (16) “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)] (17) “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)] (18) “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)] (19) “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)] (20)(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)] (21) “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)] (22) “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)] (23) “Trade show” means an exhibit of
products and services that is:
(a) Not open to the public; and
(b) Of limited duration.
[(23)] (24) “Unlawful” means not specifically
authorized by law.
SECTION 8.
Sections 2 to 5 of this 2001 Act apply
to debts first occurring on or after the effective date of this 2001 Act and to
debts occurring prior to the effective date of this 2001 Act that have not been
determined by a court to be uncollectible, unlawful or illegal.
SECTION 9.
This 2001 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 2001 Act takes effect on its passage.
Approved by the Governor
June 21, 2001
Filed in the office of
Secretary of State June 22, 2001
Effective date June 21, 2001
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