N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 1339: Credit

§ 1339. Credit. 1. Except as otherwise provided in this section, no

gaming facility licensee or any person licensed under this article, and

no person acting on behalf of or under any arrangement with a gaming

facility licensee or other person licensed under this article, shall:

(a) Cash any check, make any loan, or otherwise provide or allow to

any person any credit or advance of anything of value or which

represents value to enable any person to take part in gaming activity as

a player; or

(b) Release or discharge any debt, either in whole or in part, or make

any loan which represents any losses incurred by any player in gaming

activity, without maintaining a written record thereof in accordance

with the rules of the commission.

2. No gaming facility licensee or any person licensed under this

article, and no person acting on behalf of or under any arrangement with

a gaming facility licensee or other person licensed under this article,

may accept a check, other than a recognized traveler's check or other

cash equivalent from any person to enable such person to take part in

gaming activity as a player, or may give cash or cash equivalents in

exchange for such check unless:

(a) The check is made payable to the gaming facility licensee;

(b) The check is dated, but not postdated;

(c) The check is presented to the cashier or the cashier's

representative at a location in the gaming facility approved by the

commission and is exchanged for cash or slot tokens which total an

amount equal to the amount for which the check is drawn, or the check is

presented to the cashier's representative at a gaming table in exchange

for chips which total an amount equal to the amount for which the check

is drawn; and

(d) The regulations concerning check cashing procedures are observed

by the gaming facility licensee and its employees and agents. Nothing in

this subdivision shall be deemed to preclude the establishment of an

account by any person with a gaming facility licensee by a deposit of

cash, recognized traveler's check or other cash equivalent, or a check

which meets the requirements of subdivision seven of this section, or to

preclude the withdrawal, either in whole or in part, of any amount

contained in such account.

3. When a gaming facility licensee or other person licensed under this

article, or any person acting on behalf of or under any arrangement with

a gaming facility licensee or other person licensed under this article,

cashes a check in conformity with the requirements of subdivision two of

this section, the gaming facility licensee shall cause the deposit of

such check in a bank for collection or payment, or shall require an

attorney or casino key employee with no incompatible functions to

present such check to the drawer's bank for payment, within:

(a) seven calendar days of the date of the transaction for a check in

an amount of one thousand dollars or less;

(b) fourteen calendar days of the date of the transaction for a check

in an amount greater than one thousand dollars but less than or equal to

five thousand dollars; or

(c) forty-five calendar days of the date of the transaction for a

check in an amount greater than five thousand dollars.

Notwithstanding the foregoing, the drawer of the check may redeem the

check by exchanging cash, cash equivalents, chips, or a check which

meets the requirements of subdivision seven of this section in an amount

equal to the amount for which the check is drawn; or he or she may

redeem the check in part by exchanging cash, cash equivalents, chips, or

a check which meets the requirements of subdivision seven of this

section and another check which meets the requirements of subdivision

two of this section for the difference between the original check and

the cash, cash equivalents, chips, or check tendered; or he or she may

issue one check which meets the requirements of subdivision two of this

section in an amount sufficient to redeem two or more checks drawn to

the order of the gaming facility licensee. If there has been a partial

redemption or a consolidation in conformity with the provisions of this

subdivision, the newly issued check shall be delivered to a bank for

collection or payment or presented to the drawer's bank for payment by

an attorney or casino key employee with no incompatible functions within

the period herein specified. No gaming facility licensee or any person

licensed or registered under this article, and no person acting on

behalf of or under any arrangement with a gaming facility licensee or

other person licensed under this article, shall accept any check or

series of checks in redemption or consolidation of another check or

checks in accordance with this subdivision for the purpose of avoiding

or delaying the deposit of a check in a bank for collection or payment

or the presentment of the check to the drawer's bank within the time

period prescribed by this subdivision.

In computing a time period prescribed by this subdivision, the last

day of the period shall be included unless it is a Saturday, Sunday, or

a state or federal holiday, in which event the time period shall run

until the next business day.

4. No gaming facility licensee or any other person licensed or

registered under this article, or any other person acting on behalf of

or under any arrangement with a gaming facility licensee or other person

licensed or registered under this article, shall transfer, convey, or

give, with or without consideration, a check cashed in conformity with

the requirements of this section to any person other than:

(a) The drawer of the check upon redemption or consolidation in

accordance with subdivision three of this section;

(b) A bank for collection or payment of the check;

(c) A purchaser of the gaming facility license as approved by the

commission; or

(d) An attorney or casino key employee with no incompatible functions

for presentment to the drawer's bank.

The limitation on transferability of checks imposed herein shall apply

to checks returned by any bank to the gaming facility licensee without

full and final payment.

5. No person other than a casino key employee licensed under this

article or a gaming employee registered under this article may engage in

efforts to collect upon checks that have been returned by banks without

full and final payment, except that an attorney-at-law representing a

gaming facility licensee may bring action for such collection.

6. Notwithstanding the provisions of any law to the contrary, checks

cashed in conformity with the requirements of this article shall be

valid instruments, enforceable at law in the courts of this state. Any

check cashed, transferred, conveyed or given in violation of this

article shall be invalid and unenforceable for the purposes of

collection but shall be included in the calculation of gross gaming

revenue.

7. Notwithstanding the provisions of subdivision two of this section

to the contrary, a gaming facility licensee may accept a check from a

person to enable the person to take part in gaming activity as a player,

may give cash or cash equivalents in exchange for such a check, or may

accept a check in redemption or partial redemption of a check issued in

accordance with subdivision two of this section, provided that:

(a) (1) The check is issued by a gaming facility licensee, is made

payable to the person presenting the check, and is issued for a purpose

other than employment compensation or as payment for goods or services

rendered;

(2) The check is issued by a banking institution which is chartered in

a country other than the United States on its account at a federally

chartered or state-chartered bank and is made payable to "cash,"

"bearer," a gaming facility licensee, or the person presenting the

check;

(3) The check is issued by a banking institution which is chartered in

the United States on its account at another federally chartered or

state-chartered bank and is made payable to "cash," "bearer," a gaming

facility licensee, or the person presenting the check;

(4) The check is issued by a slot system operator or pursuant to an

annuity jackpot guarantee as payment for winnings from a multi-casino

progressive slot machine system jackpot; or

(5) The check is issued by an entity that holds a gaming facility

license in any jurisdiction, is made payable to the person presenting

the check, and is issued for a purpose other than employment

compensation or as payment for goods or services rendered;

(b) The check is identifiable in a manner approved by the commission

as a check authorized for acceptance pursuant to paragraph (a) of this

subdivision;

(c) The check is dated, but not postdated;

(d) The check is presented to the cashier or the cashier's

representative by the original payee and its validity is verified by the

drawer in the case of a check drawn pursuant to subparagraph one of

paragraph (a) of this subdivision, or the check is verified in

accordance with regulations promulgated under this article in the case

of a check issued pursuant to subparagraph two, three, four or five of

paragraph (a) of this subdivision; and

(e) The regulations concerning check-cashing procedures are observed

by the gaming facility licensee and its employees and agents. No gaming

facility licensee shall issue a check for the purpose of making a loan

or otherwise providing or allowing any advance or credit to a person to

enable the person to take part in gaming activity as a player.

8. Notwithstanding the provisions of subdivisions two and three of

this section to the contrary, a gaming facility licensee may, at a

location outside the gaming facility, accept a personal check or checks

from a person for up to five thousand dollars in exchange for cash or

cash equivalents, and may, at such locations within the gaming facility

as may be permitted by the commission, accept a personal check or checks

for up to five thousand dollars in exchange for cash, cash equivalents,

tokens, chips, or plaques to enable the person to take part in gaming

activity as a player, provided that:

(a) The check is drawn on the patron's bank or brokerage cash

management account;

(b) The check is for a specific amount;

(c) The check is made payable to the gaming facility licensee;

(d) The check is dated but not post-dated;

(e) The patron's identity is established by examination of one of the

following: valid credit card, driver's license, passport, or other form

of identification credential which contains, at a minimum, the patron's

signature;

(f) The check is restrictively endorsed "For Deposit Only" to the

gaming facility licensee's bank account and deposited on the next

banking day following the date of the transaction;

(g) The total amount of personal checks accepted by any one licensee

pursuant to this subdivision that are outstanding at any time, including

the current check being submitted, does not exceed five thousand

dollars;

(h) The gaming facility licensee has a system of internal controls in

place that will enable it to determine the amount of outstanding

personal checks received from any patron pursuant to this subdivision at

any given point in time; and

(i) The gaming facility licensee maintains a record of each such

transaction in accordance with regulations established by the

commission.

9. A person may request the commission to put that person's name on a

list of persons to whom the extension of credit by a gaming facility as

provided in this section would be prohibited by submitting to the

commission the person's name, address, and date of birth. The person

does not need to provide a reason for this request. The commission shall

provide this list to the credit department of each gaming facility;

neither the commission nor the credit department of a gaming facility

shall divulge the names on this list to any person or entity other than

those provided for in this subdivision. If such a person wishes to have

that person's name removed from the list, the person shall submit this

request to the commission, which shall so inform the credit departments

of gaming facilities no later than three days after the submission of

the request.