130.02 Social games – Games of chance

130.02 Social games – Games of chance.

(A) Generally. No person shall participate in, operate or assist in operating any gambling game or activity, including a lottery, except as permitted by O.R.S. 167.117 through 167.162. No person shall have in his or her possession any property, instrument or device designed or adapted for use in any type of gambling activity. Any such property, instrument or device is a nuisance and may be summarily seized by the city. Property so seized shall be placed in the custody of the city. Upon conviction of the person owning or controlling such property for a violation of this section, the Court shall order such property confiscated and destroyed.

(B) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CARD ROOM. Any private business, private club or place of public accommodation wherein any table is maintained upon which games of cards or other social games are played.

CHARITABLE, FRATERNAL OR RELIGIOUS ORGANIZATION. Any person organized and existing for charitable, benevolent, eleemosynary, humane, patriotic, religious, philanthropic, recreational, social, educational, civic, fraternal or other non-profit purposes, and who is also exempt from payment of federal income taxes because of its charitable, fraternal or religious purposes. The fact that contributions to an organization profiting from the contest do not qualify for charitable deduction for tax purposes or that the organization is not otherwise exempt from payment of federal income taxes pursuant to the Internal Revenue Code of 1986, as amended, constitutes prima facie evidence that the organization is not a bona fide CHARITABLE, FRATERNAL OR RELIGIOUS ORGANIZATION.

(a) A person stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under the control or influence of the person, upon an agreement or understanding that the person or someone else will receive something of value in the event of a certain outcome.

(b) The term GAMBLING shall not include:

(1) Bona fide business transactions valid under the law of contracts for the purchase or sale at a future date of securities or commodities, and agreements to compensate for loss caused by the happening of chance, including, but not limited to, contracts of indemnity or guaranty and life, health or accident insurance;

(2) Engaging in contests of chance under the following conditions:

(a) The contest is played for some token other than money;

(b) An individual contestant may not purchase more than $100 worth of tokens for use in the contest during any 24-hour period;

(d) Except when the tokens are exchanged for a beverage or merchandise to be consumed on the premises, the tokens are not redeemable on the premises where the contest is conducted or within 50 miles thereof; and

(e) Except for charitable, fraternal or religious organizations, no person who conducts the contest as owner, agent or employee profits in any manner from operation of the contest.

(3) Social games, if such games are conducted in compliance with this section; and/or

(4) Bingo, lotto or raffles operated in compliance with O.R.S. 167.118, by a charitable, fraternal or religious organization licensed pursuant to O.R.S. 167.118, 464.250 to 464.380, 464.420 and 464.450 to 464.530 to operate such games.

(a) A game, other than a lottery, between players in a private home where no house player, house bank or house odds exist and there is no house income from the operation of the SOCIAL GAME.

(b) A game, other than a lottery, between players in a private business, private club or place of public accommodation where no house player, house bank or house odds exist and there is no house income from the operation of the SOCIAL GAME.

(C) Application for license. From and after this date, it shall be lawful for any person, firm or corporation (hereafter referred to as “enterprise”) to engage in or carry on, or maintain or conduct, any card room in the city only if such enterprise has a valid card room license from said city. All persons having a financial interest in such enterprise shall file an application on forms provided by the city for such license with the City Manager and which shall be accompanied by a $65 non-refundable deposit investigation fee. Upon receipt of the application and deposit investigation fee, the City Manager shall order an investigation. Should the cost of the investigation exceed the deposit investigation fee, the excess shall be paid to the city by the applicant prior to issuance of the license. Any enterprise desiring to obtain a license under the provisions of this section shall pay to the City Manager the amount required in division (I) below.

(D) Card room license not transferable. No card room license shall be assignable or transferable. Change of persons having a financial interest in a licensed card room business shall be reported immediately to the City Manager, who shall order an investigation under the same terms and conditions as described in division (C) above, and the change must be approved or denied by the City Council. Applications for change of financial ownership shall be accompanied by a $65 non-refundable deposit investigation fee. Should the cost of the investigation exceed the deposit investigation fee, the excess shall be paid to the city by the transferee prior to final approval by the City Council being given for the transfer.

(E) Granting and denial of application. The City Council shall either approve the application and grant the license applied for or deny the application and refuse to grant the license. The license shall not be granted if the card room enterprise or any person with a financial interest in the card room enterprise:

(1) Has been previously convicted of a felony within the last ten years;

(2) Has been convicted of two misdemeanors, excepting minor traffic offenses, within the last five years;

(3) Has been convicted of or forfeited bail for any crime involving gambling within the last five years;

(4) Has been directly or indirectly involved in a forfeiture proceeding regarding a gambling device as defined in the Oregon Revised Statutes where such gambling device has been ordered destroyed or a bond has been forfeited in lieu of the gambling device being destroyed within the last five years;

(5) Has included in the application any false or misleading information or has omitted any information;

(6) Has had a license which was in his or her name revoked or suspended three times by the State Liquor Control Commission, the last of which was within the last five years;

(7) The enterprise or any of the enterprise’s employees violates any section of this section; and/or

(8) Has engaged in any other conduct involving moral turpitude.

(1) The City Manager shall temporarily suspend any card room license issued hereunder if the City Attorney determines there is substantial evidence that:

(a) Any person who has any interest in the enterprise has been previously convicted of a felony within the last ten years;

(b) Any person who has any interest in the enterprise has been convicted of two misdemeanors, excepting minor traffic offenses, within the last five years;

(c) Any person who has any interest in the enterprise has been convicted of or forfeited bail for any crime involving gambling within the last five years;

(d) Any person who has any interest in the enterprise has been directly or indirectly involved in a forfeiture proceeding regarding a gambling device, as defined in the Oregon Revised Statutes, where such gambling device has been ordered destroyed or a bond has been forfeited in lieu of the gambling device being destroyed within the last five years;

(e) Any false or misleading information is supplied in the application or any information requested is omitted from the application;

(f) Any person who has any interest in the enterprise has had a license which was in his or her name revoked or suspended three times by the State Liquor Control Commission, the last of which was within the last five years;

(g) Any person who has any interest in the enterprise or any employee who violates any division of this section; and

(h) Any person who has any interest in the enterprise is involved with any other conduct involving moral turpitude.

(2) Appeal from issuance of a temporary suspension shall be made to the City Council, at a meeting in regular Council session. Notice of such appeal shall be filed with the City Manager within ten days or such action shall stand until issuance of a permanent revocation or expiration of the temporary suspension. A temporary suspension shall be for 60 days.

(3) Permanent revocation may be made only by the City Council and such revocation shall only take place at a City Council meeting in regular Council session upon application of the City Manager and only after the licensee has been served with notice at least 20 days prior to the City Council meeting.

Such notice shall include the time and date of the City Council meeting and the grounds upon which the permanent revocation is sought. Notice shall be deemed to have been received by the licensee if the City Manager mails such notice to the address listed by the licensee on his or her application for a license.

(G) Regulations. It shall be unlawful to operate a card room in violation of any of the following regulations and rules.

(1) With respect to the social games set forth in this section, there shall be a limit on any bet of $10 and a three-raise limit.

(2) The licensee holding or obtaining licenses under the provisions of this section shall thereby automatically agree to be bound by and observe each and all of the terms and conditions, and provisions of this section and of the regulations and rules established thereby.

(3) Each and all of the games conducted or operated in the city pursuant to the provisions of this section shall be conducted and operated in full conformity with, and subject to, all the provisions of the laws of the state and the city.

(4) No licensee shall allow the use of any card room between the hours of 2:00 a.m. and 10:00 a.m. of any day.

(5) All card rooms shall be open to police inspection during all hours of operation. Card rooms licenses shall be available for inspection during all hours of operation.

(6) No licensee, nor any of the licensee’s employees, shall participate in any card game nor procure players, back, farm out, assign or sublet any card games lawfully permitted under this section on the premises in which said licensee has any interest or any of licensee’s employees work.

(7) The playing of all card games shall be so arranged as to provide free access and visibility to any interested party. Doors leading into the card room must remain unlocked during all hours of operation.

(8) No person under the age of 21 shall be permitted to participate in any card game or to enter or remain upon such premises.

(9) No charge shall be collected from any player for the privilege of participating in any game.

(10) With respect to tables at which any form of blackjack or 21 is played, there shall be a limit of four tables for such play in any licensed room.

(H) Signs. All signs to comply with the city’s Zoning Ordinance (Ch. 157 of this code).

(I) Card table fees. Any enterprise who shall keep, maintain or operate any card table or other social game table shall pay in advance a yearly license fee which shall expire on December 31 of the year for which it is issued. Tables at which any form of blackjack or 21 is played shall be charged an annual fee of $500 for all such tables collectively. Card tables used for other social games shall be charged a $50 annual fee for each card table kept or maintained therein.

(J) Exceptions to license. A non-profit society, club or fraternal organization having adopted bylaws and duly elected directors and members may be granted a permit at an annual fee of $500, expiring on December 31, when it appears that the tables are for the exclusive use of members of the society, club or fraternal organization and no charge is made for participation. The society, club or fraternal organization shall have been in continuous existence, actively conducting its affairs within the city for a period of two years immediately preceding application for a license, and only if the conduct of a card room is not the primary reason for existence of the society, club or fraternal organization. (Ord. 89-1, passed 04/4/1989; Ord. 91-02, passed 07/9/1991; Ord. 92-01, passed 05/12/1992)

Penalty, see § 130.99