Eases certain restrictions on the conducting of games of chance and bingo for charitable purposes

Second, to update the provisions that govern the conduct of bingo games in New York. Article 14-H of the General Municipal Law was first codified in 1957 and has not been substantially modernized since that date. The operation of bingo games raises significant funds for not-for-profit organizations that helps to support their charitable purposes. However, again, the light year changes that have occurred in lifestyles and entertainment venues since the late 1950's has substantially curtailed the amount of bingo money raised by charitable organizations to support their charitable purposes.

The goal of this bill is to modernize the provisions of Articles 9-A and 14-H to help stabilize the amount of revenue raised by charitable organizations, such as fire companies, parochial schools, religious organizations, and fraternal organizations, and to enhance their ability to support their designated charitable purposes. Further, the bill attempts to encourage more volunteers to participate in the conduct of games of chance and bingo and to reduce overhead costs that could then be shifted to supporting those designated charitable purposes.

Summary of provisions

The first 12 sections of this bill modernize the conduct and management of games of chance. Sections 13 through 22 modernize the regulation of bingo games. Games of Chance Reforms:

Section 1: Amends General Municipal. Law section 186 to up-date definitions that are used in Article 9-A that govern the regulation of charitable games such as bell jars, raffles, and Las Vegas nights. Among the definitions that are modified are the inclusion of the term "auxiliary member". This definition is currently included in the law, but is buried in the body of the General Municipal Law. In addition, it changes the definition of "one occasion" to increase the series of prize limits from $3,000 to $10,000.

Section 2: Amends General Municipal Law section 189 to permit auxiliary members of a charitable organization to participate in the management and operation of such games. This provision was added to reflect the current problem that charitable organizations are facing in securing volunteers to manage and conduct games of chance. This

provision also increases a single prize limit from $300 to $400, except for raffles which increased from $250 to $300. Fox a series of prizes, the values increase from $400 to $500 to reflect the devaluation of the prizes due to inflation. The prize limits set in this section were established in 1976. With inflation since 1976, the prize values have been devalued substantially over the past 35 years.

Section 3: Amends General Municipal Law section 190 to reduce the number of bona fide members of an applicant organization that are named to manage the games of chance from 4 to 3. This is needed due to the lack of volunteers available to manage these charitable games.

Section 4: Amends the General Municipal Law section 190-a to include volunteer ambulance workers as being a bona fide authorized organization that can conduct games of chance. Before 1976, most ambulance companies were organized under a volunteer fire company. However, it is more common now to see ambulance companies that operate free of a volunteer fire company.

Section 5: Amends General Municipal Law section 190-a to allow those between the ages of 16 and 18 can help conduct a raffle if accompanied by an adult. Such persons must be either members or auxiliary members of such charitable organization.

Section 6: Amends General Municipal Law section 194 to allow for the sale of wine, in addition to the currently authorized sale of beer during the conduct of games of chance events. Drinking patterns have changed since this law was last codified in 1976. The consumption of wine is far more common that it was in the past and should be allowed during the conduct of games of chance. Further, the issuance of beer only licenses for on-premise consumption have declined, to be replaced by licensees that sell both beer and wine.

Section 7: Amends General Municipal Law section 195 to change the default on conducting of games of chance on Sunday from being prohibited unless authorized by the local municipality to being permitted unless the local municipality opts to prohibit such games on Sunday.

Section 8: Amends General Municipal Law section 195-a to permit those who are 16 to 18 years old, who axe either members or auxiliary members of the charitable organization, to help conduct games as long as they are accompanied by an adult. Under current law, children can attend games as long as they are accompanied by an adult. This bill will increase the pool of volunteers that could help to conduct bingo games, provide assistance at the snack stand, or perform other tasks. Since 1967, the world has changed. With the expanded use of the internet, internet gambling, and questionable material that is readily available to children on the internet, it seems outdated that teenagers between the ages of 16 and 18 are prohibited from assisting their parents or other adults in assisting in the conduct of games with other adults. In today's society, there are probably much Worse things that a teenager could be doing than helping a charitable organization conduct a games of chance.

Section 9: Amends General Municipal Law section 195-b to increase the frequency at which games can be conducted from 12 to 18 times in any calendar year.

Section 10: Amends General Municipal Law section 195-c to reformat this section so that the definition of auxiliary member of a charitable organization is contained not in this section, but shifted to the definitions section contained in bill section one.

Section 11: Amends General Municipal Law section 195-e to modernize the types of advertising that can be done to promote game nights. It permits the use of emails and government access television broadcasts. Also, it allows volunteer ambulance companies to display signs advertising bingo events as is now the case for volunteer fire companies. When this law was first enacted in 1967, ambulance corps were generally associated with a fire company. Since then, the free standing volunteer ambulance company is more common so this provision was amended to include such free standing ambulance squads.

Bingo Reforms:

Section 12: Amends General Municipal Law section 476 to update definitions that are used in Article 14-H that govern the regulation of bingo games. Among the definitions that are modified are the inclusion of the term "auxiliary member". This definition is currently included in the law, but is buried in the body of the General. Municipal Law. This provision slightly increases the number of times the game of bingo can occur.

Section 13: Amends General Municipal Law section 479 to permit auxiliary members of a charitable organization to participate in the management and operation of such games. This provision was added to reflect the current problem that charitable organizations are facing in securing volunteers to manage and conduct bingo games.

Section 14: Amends General Municipal Law section 481 to update provisions related to slightly increasing the number of times that bingo Can be played during the day and consecutive days.

Section 15: Amends General Municipal Law section 483 to correct a misspelled word.

Section 16: Amends General Municipal Law section 485 to change the default on conducting bingo games on Sunday from being prohibited unless authorized by the local municipality to being permitted unless the local municipality opts to prohibit such games on Sunday.

Section 17: Amends General Municipal Law section 486 to permit those who are 16 to 18 years old, who are members or auxiliary members of the sponsoring charitable organization, to help conduct games of bingo as long as they are accompanied by an adult. Under current law, children can participate in bingo games as long as they are accompanied by an adult. This bill will increase the pool of volunteers that could help to conduct bingo games, provide assistance at the snack stand and handout bingo cards. Since 1957, the world has changed. With the expanded used of the internet, internet gambling, and questionable material that is readily available to children on the

internet, it seems outdated that teenagers between the ages of 16 and 18 are prohibited from assisting their parents or other adults in passing out bingo cards to game participants. In today's society, there are probably much worse things that a teenager could be doing than helping a charitable organization conduct a bingo game in a church basement, firehouse, or fraternal lodge.

Section 18: Amends General Municipal Law section 487 to increase the frequency at which bingo games can be conducted from 18 to 27 days in any three successive calendar months.

Section 19: Amends General Municipal Law section 488 to reformat this section so that the definition of auxiliary member of a charitable organization is contained not in this section, but shifted to the definitions section contained in bill section thirteen.

Section 20: Amends General Municipal Law section 490 to modernize the types of advertising that can be done to promote bingo game nights. It permits the use of emails and government access television broadcasts. Also, it allows volunteer ambulance companies to display signs advertising bingo events as is now the case for volunteer fire companies. When this law was first enacted in 1957, ambulance corps were generally associated with a fire company. Since then, the free standing volunteer ambulance company is more common so this provision was amended to include such free standing ambulance squads.

Section 21: Amends General Municipal Law section 491 to extend from 7 days to 10 days in which file municipal reports on gross receipts from bingo games. Since these reports are prepared and filed by charitable organization volunteers, this extension ill the time period will in effect give them not just one, but two full weekends to prepare and file reports on gross receipts.

Section 22: Effective Date.

Justification

The conduct of games of chance raises substantial funds to support the charitable purposes of those organization that conduct such games. However, the total amount wagered and more importantly the profit that has been retained by these charitable organizations has been steadily declining. In 2000, total games of chance handle generated in New York was $323,330,000, however in 2010 that total handle declined by approximately $81,000,000 to a total of $242,600,000. More importantly, the profits generated by these games declined substantially from $53,750,000 in 2000 to $46,530,000 in 2010. That is an annual reduction in support for New York's charitable organizations of $7,220,000.

As with games of chance, the conduct of bingo.games, in the past, has raised substantial revenue to support the charitable purposes of those organizations that conduct such games. However, the total amount wagered and more importantly the profit that is retained by these charitable organizations has been steadily declining. In 2000, total bingo handle generated in New York was $178,011,000, however in 2010 that total handle declined by $104,000,000 to a total of $74,000,000. More importantly, the profits generated by bingo games has imploded from $38,047,000 in 2000 to $10,800,000 in 2010. That is an annual

reduction in support for New York's charitable organizations of $27,200,000.

There are many reasons for this reduction in revenue generated to support charitable organizations. The most important is the reduced number and pool of volunteers available to conduct and manage such games. This bill addresses this by allowing teenagers over the age of 16, who are members or auxiliary members of such charitable organization, to assist other adults in conducting the games, handing out bingo cards, operating the snack bar, and performing other tasks.

Second, the means of advertising bingo games needs to be modernized to include those forms of communication that are more commonly used now, i.e. the internet.

Another reason to encourage the financial viability of charitable gaming is that it is an inexpensive night out and social event for many members of the community, including senior citizens, members of charitable or fraternal organizations, school groups, and their friends, neighbors and families. In these difficult economic times, it is important to retain social venues in which members of a community can gather to participate in a regularly scheduled, but reasonably priced, event. The cost to participate in games such as bingo is minimal, but for many, it is a regularly scheduled community event that all can participate in.

Legislative history

2012 - S. 7104, Racing & Wagering committee

Fiscal implications

None.

Effective date

January first after such act shall have become law.