N.Y. Gen. Mun. Law § 195-c

* § 195-c. 1. Persons operating games; equipment; expenses;\ncompensation. No person shall operate any game of chance under any\nlicense issued under this article except a bona fide member of the\nauthorized organization to which the license is issued, or a bona fide\nmember of an organization or association which is an auxiliary to the\nlicensee or a bona fide member of an organization or association of\nwhich such licensee is an auxiliary or a bona fide member of an\norganization or association which is affiliated with the licensee by\nbeing, with it, auxiliary to another organization or association.\nNothing herein shall be construed to limit the number of games of chance\nlicensees for whom such persons may operate games of chance nor to\nprevent non-members from assisting the licensee in any activity other\nthan managing or operating games. No game of chance shall be conducted\nwith any equipment except such as shall be owned or leased by the\nauthorized organization so licensed or used without payment of any\ncompensation therefor by the licensee. However, in no event shall bell\njar tickets be transferred from one authorized organization to another,\nwith or without payment of any compensation thereof. The head or heads\nof the authorized organization shall upon request certify, under oath,\nthat the persons operating any game of chance are bona fide members of\nsuch authorized organization, auxiliary or affiliated organization. Upon\nrequest by an officer or the department any such person involved in such\ngames of chance shall certify that he or she has no criminal record. No\nitems of expense shall be incurred or paid in connection with the\nconducting of any game of chance pursuant to any license issued under\nthis article except those that are reasonable and are necessarily\nexpended for games of chance supplies and equipment, prizes, security\npersonnel, stated rental if any, bookkeeping or accounting services\naccording to a schedule of compensation prescribed by the board,\njanitorial services and utility supplies if any, and license fees, and\nthe cost of bus transportation, if authorized by such clerk or\ndepartment. No commission, salary, compensation, reward or recompense\nshall be paid or given to any person for the sale or assisting with the\nsale of raffle tickets.\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 * NB Effective until December 19, 2026\n * § 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;\n (l) 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 (m) use electronic features to display and dispense pre-printed bell\njar tickets; and\n (n) limit the speed of play to prevent rapid successive wagering as\nrequired by regulations promulgated by the commission.\n 3-a. Each electronic bell jar vending machine that has been approved\nby the commission pursuant to paragraph (b) of subdivision nine of\nsection one hundred eighty-eight-a of this article may include audio and\nvideo features to display information about a ticket being dispensed,\nprovided that such features shall not affect the outcome of the game.\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) The maximum number of electronic bell jar vending machines that\na veteran organization or volunteer fire company may operate shall be\ndetermined by the commission, but shall in no event exceed three\nmachines.\n (b) (i) The use of an electronic bell jar vending machine shall not be\napproved or permitted in any location restricted by a compact between an\nIndian tribe and the state of New York, as determined by the commission.\n (ii) 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 (a) of this subdivision:\n For any veteran organization or volunteer fire company at a premises\nlocated within two thousand five hundred feet of any gaming facility,\nthe maximum number of electronic bell jar vending machines that may be\noperated shall be one. The commission shall establish procedures for\nmeasuring such distance. For any veteran organization or volunteer fire\ncompany at a premises located more than two thousand five hundred feet\nbut not more than one mile from any gaming facility, the maximum number\nof electronic bell jar vending machines that may be operated shall be\ntwo, provided that the commission, in authorizing such machines,\nconsiders local market conditions and the objectives of preventing\nmarket oversaturation. For any veteran organization or volunteer fire\ncompany at a premises located more than one mile from any gaming\nfacility, the maximum number of electronic bell jar vending machines\nshall be three, provided that the commission shall retain the discretion\nto impose stricter limitations based on local density of veteran\norganizations and/or volunteer fire companies operating such machines,\npotential impact on existing gaming facilities, and the determination of\nthe commission of what will best serve public convenience, consistent\nwith the objectives set forth in paragraph (c) of this subdivision. The\ncommission shall, by rule or regulation, further define the methodology\nfor assessing local density and market conditions within such cities and\nmay establish specific zones or areas where the placement of electronic\nbell jar vending machines is further limited or requires enhanced\nreview, to ensure the responsible integration of such charitable gaming\nopportunities.\n (iii) 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) and (ii) of this\nparagraph based upon the determination of the commission of what will\nbest serve public convenience, potential impact on existing gaming\nfacilities, and the need to prevent loss of employment at such\nfacilities, provided that any such modification shall be consistent with\nthe objective of supporting charitable fundraising while maintaining the\nexisting gaming landscape and preventing market oversaturation; provided\nhowever, that any such modification shall constitute only a reduction of\nthe thresholds established by this subdivision.\n (c) (i) Notwithstanding any other provision of this article, the\ncommission shall have the discretion to determine the number of\nelectronic bell jar vending machines that may be operated by any veteran\norganization or volunteer fire company, and the location of such\nmachines; provided, however, that such number of machines shall not\nexceed the limits established in this subdivision. Such discretion shall\nbe exercised to ensure that the introduction and operation of electronic\nbell jar vending machines occurs exclusively to the fundraising\ncapabilities of legitimate veteran organizations or volunteer fire\ncompanies while maintaining the stability of existing regulated gaming\nsectors and revenue to the state, and avoiding any loss of employment at\nexisting gaming facilities.\n (ii) The commission shall deny, revoke, or limit the number of\nelectronic bell jar vending machines a veteran organization or volunteer\nfire company may operate if the commission determines that such\norganization has been established, structured, or is being utilized,\ndirectly or indirectly, to obtain a greater number of machines than\notherwise would be permitted. This consideration includes, but is not\nlimited to, the creation of subsidiary entities, shell organizations, or\nany other arrangement where the facts and circumstances indicate an\nintent to circumvent the limitations set forth in this subdivision. The\ncommission is empowered to scrutinize the governance, operational\ncontrol, and financial interdependence of organizations to make such\ndeterminations.\n (iii) The co-siting or joint housing of multiple veteran organizations\nand/or volunteer fire companies at a single premises or contiguous\npremises for the primary purpose of increasing the aggregate number of\nelectronic bell jar vending machines at such location beyond what would\notherwise be permitted for a single veteran organization or volunteer\nfire company operating at such premises is prohibited, unless explicitly\nauthorized by the commission upon a finding that such arrangement is\nconsistent with the public interest and the objectives of this article.\nThe commission shall promulgate rules and regulations to effectuate this\nprovision, considering factors such as shared operational control,\nmembership overlap, and the primary purpose of the co-siting\narrangement.\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 assessment of proximity to gaming\nfacilities.\n 8. The commission shall promulgate such rules and regulations as the\ncommission may deem necessary to ensure that electronic bell jar vending\nmachines are only accessible to bona fide members of the veterans\norganization or bona fide members of the volunteer fire company. Such\nmachines shall not be accessible to the public or to any individual who\nis not a bona fide member of such organization or company; provided,\nhowever, that the commission may authorize the use of such machines at\neach veteran organization's or volunteer fire company's fundraising\nevents on no more than four occasions per calendar year, at which time\nsuch machines may be made accessible to individuals who are not bona\nfide members, subject to such supervision and safeguards as the\ncommission may require, including measures to ensure that no individual\nunder the age of eighteen participates.\n * NB Effective December 19, 2026\n