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:

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.

* NB Effective until December 19, 2026

* 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 commission or from

another authorized organization. Lease terms and conditions shall be

subject to rules and regulations promulgated by the commission. 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, or purchase,

lease or utilize any electronic bell jar vending machine, 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.

* NB Effective December 19, 2026

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.