N.Y. General Municipal Law § 195-c: Persons operating games; equipment; expenses; compensation

* § 195-c. 1. Persons operating games; equipment; expenses;

compensation. No person shall operate any game of chance under any

license issued under this article except a bona fide member of the

authorized organization to which the license is issued, or a bona fide

member of an organization or association which is an auxiliary to the

licensee or a bona fide member of an organization or association of

which such licensee is an auxiliary or a bona fide member of an

organization or association which is affiliated with the licensee by

being, with it, auxiliary to another organization or association.

Nothing herein shall be construed to limit the number of games of chance

licensees for whom such persons may operate games of chance nor to

prevent non-members from assisting the licensee in any activity other

than managing or operating games. No game of chance shall be conducted

with any equipment except such as shall be owned or leased by the

authorized organization so licensed or used without payment of any

compensation therefor by the licensee. However, in no event shall bell

jar tickets be transferred from one authorized organization to another,

with or without payment of any compensation thereof. The head or heads

of the authorized organization shall upon request certify, under oath,

that the persons operating any game of chance are bona fide members of

such authorized organization, auxiliary or affiliated organization. Upon

request by an officer or the department any such person involved in such

games of chance shall certify that he or she has no criminal record. No

items of expense shall be incurred or paid in connection with the

conducting of any game of chance pursuant to any license issued under

this article except those that are reasonable and are necessarily

expended for games of chance supplies and equipment, prizes, security

personnel, stated rental if any, bookkeeping or accounting services

according to a schedule of compensation prescribed by the board,

janitorial services and utility supplies if any, and license fees, and

the cost of bus transportation, if authorized by such clerk or

department. No commission, salary, compensation, reward or recompense

shall be paid or given to any person for the sale or assisting with the

sale of raffle tickets.

2. For the purpose of the sale of tickets for the game of raffle, the

term "operate" shall not include the sale of such tickets by persons of

lineal or collateral consanguinity to members of an authorized

organization licensed to conduct a raffle.

* NB Effective until December 19, 2026

* § 195-c. Persons operating games; equipment; expenses; compensation.

1. No person shall operate any game of chance under any license issued

under this article except a bona fide member of the authorized

organization to which the license is issued, or a bona fide member of an

organization or association which is an auxiliary to the licensee or a

bona fide member of an organization or association of which such

licensee is an auxiliary or a bona fide member of an organization or

association which is affiliated with the licensee by being, with it,

auxiliary to another organization or association. Nothing herein shall

be construed to limit the number of games of chance licensees for whom

such persons may operate games of chance nor to prevent non-members from

assisting the licensee in any activity other than managing or operating

games. No game of chance shall be conducted with any equipment except

such as shall be owned or leased by the authorized organization so

licensed or used without payment of any compensation therefor by the

licensee. However, in no event shall bell jar tickets be transferred

from one authorized organization to another, with or without payment of

any compensation thereof. The head or heads of the authorized

organization shall upon request certify, under oath, that the persons

operating any game of chance are bona fide members of such authorized

organization, auxiliary or affiliated organization. Upon request by an

officer or the department any such person involved in such games of

chance shall certify that they have no criminal record. No items of

expense shall be incurred or paid in connection with the conducting of

any game of chance pursuant to any license issued under this article

except those that are reasonable and are necessarily expended for games

of chance supplies and equipment, prizes, security personnel, stated

rental if any, bookkeeping or accounting services according to a

schedule of compensation prescribed by the commission, janitorial

services and utility supplies if any, and license fees, and the cost of

bus transportation, if authorized by such clerk or department. No

commission, salary, compensation, reward or recompense shall be paid or

given to any person for the sale or assisting with the sale of raffle

tickets.

2. For the purpose of the sale of tickets for the game of raffle, the

term "operate" shall not include the sale of such tickets by persons of

lineal or collateral consanguinity to members of an authorized

organization licensed to conduct a raffle.

3. Each electronic bell jar vending machine that has been approved by

the commission pursuant to paragraph (b) of subdivision nine of section

one hundred eighty-eight-a of this article shall do the following:

(a) read a barcode or similar form of encryption or marking on the

pre-printed bell jar ticket;

(b) reveal results;

(c) verify if a bell jar ticket is redeemable for a prize;

(d) electronically aggregate winning prizes for continued play;

(e) produce a voucher for prize redemption or proof of purchase;

(f) track the sales of tickets and any other information as required

by the commission and report such sales and other information to the

commission;

(g) prohibit spinning reels or other representations or audiovisual

features that mimic a video lottery terminal or slot machine;

(h) prohibit any electronic user interface that mimics a video slot

machine;

(i) prohibit free plays, bonus games, multipliers, jackpots; provided,

however, that for purposes of this paragraph, the prohibition on

"jackpots" shall not include prizes that may be won on the bell jar

ticket itself, subject to limitations set forth in regulations

promulgated by the commission, discounts, promotions, special offers, or

similar incentives to initiate or prolong player engagement;

(j) prohibit any feature that simulates skill or allows player input

to influence the outcome of a predetermined result;

(k) prohibit the display of near-miss outcomes that may mislead a

player into believing a win was narrowly missed;

(l) track the sales of tickets and any other information as required

by the commission and report such sales and other information to the

commission;

(m) use electronic features to display and dispense pre-printed bell

jar tickets; and

(n) limit the speed of play to prevent rapid successive wagering as

required by regulations promulgated by the commission.

3-a. Each electronic bell jar vending machine that has been approved

by the commission pursuant to paragraph (b) of subdivision nine of

section one hundred eighty-eight-a of this article may include audio and

video features to display information about a ticket being dispensed,

provided that such features shall not affect the outcome of the game.

4. The following information shall be displayed by each electronic

bell jar vending machine:

(a) the total number of tickets in each deal;

(b) the price of each ticket;

(c) the number and amount of prizes in each deal;

(d) the number of winners per ticket and its respective winning

numbers or symbols;

(e) the name of the game;

(f) the name or logo of the manufacturer of the tickets and the

electronic bell jar vending machine;

(g) the compulsive gambling hotline telephone number for the state of

New York; and

(h) notification that only individuals eighteen years of age or older

may use an electronic bell jar vending machine.

5. If a voucher is produced by an electronic bell jar vending machine

for prize redemption, the following information shall appear on such

voucher:

(a) the aggregate prize amount payable to the player;

(b) the device number or other identification method for the vending

machine that produced such voucher;

(c) the date and time that such voucher was printed;

(d) the sequential number or other identification method of such

voucher;

(e) an identification number, barcode or similar form of encryption

that may be used to validate the prize amount payable to the player; and

(f) the period of time during which unused tickets or prize amounts

must be claimed.

6. (a) The maximum number of electronic bell jar vending machines that

a veteran organization or volunteer fire company may operate shall be

determined by the commission, but shall in no event exceed three

machines.

(b) (i) The use of an electronic bell jar vending machine shall not be

approved or permitted in any location restricted by a compact between an

Indian tribe and the state of New York, as determined by the commission.

(ii) In cities with a population of one million or more as of the

latest federal decennial census, the following geographic considerations

shall apply, notwithstanding any other provision of this paragraph or

paragraph (a) of this subdivision:

For any veteran organization or volunteer fire company at a premises

located within two thousand five hundred feet of any gaming facility,

the maximum number of electronic bell jar vending machines that may be

operated shall be one. The commission shall establish procedures for

measuring such distance. For any veteran organization or volunteer fire

company at a premises located more than two thousand five hundred feet

but not more than one mile from any gaming facility, the maximum number

of electronic bell jar vending machines that may be operated shall be

two, provided that the commission, in authorizing such machines,

considers local market conditions and the objectives of preventing

market oversaturation. For any veteran organization or volunteer fire

company at a premises located more than one mile from any gaming

facility, the maximum number of electronic bell jar vending machines

shall be three, provided that the commission shall retain the discretion

to impose stricter limitations based on local density of veteran

organizations and/or volunteer fire companies operating such machines,

potential impact on existing gaming facilities, and the determination of

the commission of what will best serve public convenience, consistent

with the objectives set forth in paragraph (c) of this subdivision. The

commission shall, by rule or regulation, further define the methodology

for assessing local density and market conditions within such cities and

may establish specific zones or areas where the placement of electronic

bell jar vending machines is further limited or requires enhanced

review, to ensure the responsible integration of such charitable gaming

opportunities.

(iii) The commission shall have the authority to establish, by rule or

regulation, specific proximity zones around gaming facilities and to

modify the limitations provided in subparagraphs (i) and (ii) of this

paragraph based upon the determination of the commission of what will

best serve public convenience, potential impact on existing gaming

facilities, and the need to prevent loss of employment at such

facilities, provided that any such modification shall be consistent with

the objective of supporting charitable fundraising while maintaining the

existing gaming landscape and preventing market oversaturation; provided

however, that any such modification shall constitute only a reduction of

the thresholds established by this subdivision.

(c) (i) Notwithstanding any other provision of this article, the

commission shall have the discretion to determine the number of

electronic bell jar vending machines that may be operated by any veteran

organization or volunteer fire company, and the location of such

machines; provided, however, that such number of machines shall not

exceed the limits established in this subdivision. Such discretion shall

be exercised to ensure that the introduction and operation of electronic

bell jar vending machines occurs exclusively to the fundraising

capabilities of legitimate veteran organizations or volunteer fire

companies while maintaining the stability of existing regulated gaming

sectors and revenue to the state, and avoiding any loss of employment at

existing gaming facilities.

(ii) The commission shall deny, revoke, or limit the number of

electronic bell jar vending machines a veteran organization or volunteer

fire company may operate if the commission determines that such

organization has been established, structured, or is being utilized,

directly or indirectly, to obtain a greater number of machines than

otherwise would be permitted. This consideration includes, but is not

limited to, the creation of subsidiary entities, shell organizations, or

any other arrangement where the facts and circumstances indicate an

intent to circumvent the limitations set forth in this subdivision. The

commission is empowered to scrutinize the governance, operational

control, and financial interdependence of organizations to make such

determinations.

(iii) The co-siting or joint housing of multiple veteran organizations

and/or volunteer fire companies at a single premises or contiguous

premises for the primary purpose of increasing the aggregate number of

electronic bell jar vending machines at such location beyond what would

otherwise be permitted for a single veteran organization or volunteer

fire company operating at such premises is prohibited, unless explicitly

authorized by the commission upon a finding that such arrangement is

consistent with the public interest and the objectives of this article.

The commission shall promulgate rules and regulations to effectuate this

provision, considering factors such as shared operational control,

membership overlap, and the primary purpose of the co-siting

arrangement.

7. The commission shall promulgate such rules and regulations as may

be necessary for the implementation of electronic bell jar vending

machine gaming in accordance with the provisions of this section,

including, but not limited to, the assessment of proximity to gaming

facilities.

8. The commission shall promulgate such rules and regulations as the

commission may deem necessary to ensure that electronic bell jar vending

machines are only accessible to bona fide members of the veterans

organization or bona fide members of the volunteer fire company. Such

machines shall not be accessible to the public or to any individual who

is not a bona fide member of such organization or company; provided,

however, that the commission may authorize the use of such machines at

each veteran organization's or volunteer fire company's fundraising

events on no more than four occasions per calendar year, at which time

such machines may be made accessible to individuals who are not bona

fide members, subject to such supervision and safeguards as the

commission may require, including measures to ensure that no individual

under the age of eighteen participates.

* NB Effective December 19, 2026