Chapter 14A.70 Gambling, Social Games, and Unlawful Amusement Games or Concessions

For the purposes of this Chapter, the following definitions shall apply:

A.  "Chain letter or pyramid scheme" includes, but is not limited to the following:

1. Any system, scheme, or device, operated by letters, circulars, cards, or other written or printed instrumentality, or orally, or by any other system, whereby it is represented that upon surrender of any sum of money or any other thing of value, a person may receive in return money or any other thing of value in an amount greater than the sum or value surrendered; or

2. Receipt of money or other thing of value in a sum greater than the value of the money, or other thing of value surrendered, dependent either wholly or in part, upon that person's surrendering money or any other thing of value; or

3. Determination of when persons shall receive a greater sum of money or other thing of value, effected by any system or scheme where the names of persons surrendering any sum of money or other thing of value are arranged so that the payment, donation, or contribution to them depends upon a scheme whereby their names appear at the top or other designated place upon a list according to the number order or rotation of such persons who have, or who may thereafter surrender any sum of money or other thing of value in order to participate.

B. "Contest of chance" means any contest, game, gaming schemes, or gaming device in which the outcome materially depends upon an element of chance, notwithstanding that the contestants’ skill may also be a factor.

C. "Gambling" shall have the same definition as provided in ORS 167.117(7).

D. "Lottery" means a game in which:

1. The players pay or agree to pay something of value for chances, represented and differentiated by numbers or by combinations of numbers or by some other medium, one or more of which chances are to be designated as winning ones; and

2. The winning chances are to be determined by a drawing or by some other similar method; and

3. The holders of the winning chances are to receive something of value.

E. "Social game" means 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.

F. "Something of value" means any money, item of value, or any form of credit or promise directly or indirectly contemplating transfer of money or thing of value or any interest.

It is unlawful for any person to frequent or remain at any place where unlawful gambling activity is being conducted.

It is unlawful for any person, whether acting as principal, agent, servant or employee to establish, maintain, conduct, manage, profit from, or operate any chain letter or pyramid scheme; or to solicit or advertise any such scheme; or to list persons who have surrendered any sum of money or any other thing of value to any such scheme. It is unlawful for any person, firm, or corporation to let, lease, or rent any real property and allow any such scheme to be established, maintained, conducted, managed or operated therein or thereon.

A social game between players in a private business, private club, or place of public accommodation is authorized only when each of the following conditions are met:

A. No house player, house bank, or house odds exist; and

B. There is no house income from the operation of a social game; and

C. The game cannot be observed from a public right of way; and

D. Persons under 18 years of age are not permitted in the room or enclosure where the social game takes place; and

E. A valid permit issued pursuant to this Chapter is conspicuously displayed in the room or enclosure where the social game takes place; and

F. The room or enclosure where the social game takes place is open to free and immediate access by any police officer. Doors leading into the social game room must remain unlocked during all hours of operation; and

G. No player shall bet more than $1 in money or other thing of value in any one game, and the amount awarded the winner of a game shall not exceed $1 in money or other thing of value multiplied by the number of players in the game.

A permit shall be required for any person to conduct or permit to be conducted in any private business, private club, or place of public accommodation any social game. Any violation of the conditions set forth in Section 14A.70.040 shall be considered grounds for suspension or revocation of such permit. Such permit is not subject to transfer or assignment, is not valid at any location other than the premises described therein, and shall be dated as of the first day of the month in which issued and shall expire 1 year from that date.

(Amended by Ordinance No. 186746, effective August 6, 2014.)

A.  The application for a permit to conduct any social game activity shall set forth all information deemed necessary by the Director of the Revenue Division consistent with the regulations provided in this Chapter, including but not limited to a description of the premises subject to the permit, and the fingerprints of the owner(s), officers, principal managing employees, and all employees who are involved in conducting the game activities or operating the game premises of the applicant. The permittee shall notify the Director within 10 days of any change in owners, officers, or principal managing employees that occurs subsequent to permit issuance.

1.  For the purposes of this Section, "principal managing employee" shall include:

a.   Any person who is a proprietor or partner of the applying organization;

b.   Any person who owns or controls 5 percent or more of the outstanding capital stock where the organization is a corporation;

c.   Any person who has supervisory authority over employees and/or operations of the business as it relates to the conduct of permitted social games; and

d.  Any person who has the authority to supervise the premises and conditions under which permitted social games are conducted. 

2.  Where the permit applicant is a nonprofit membership organization, "principal managing employee" shall also mean the chief elected official of the organization and any other elected official(s) whose authority extends to the supervision or management of permitted social games.

3.  With the concurrence of the Chief of Police or proper designee, the Revenue Division may exempt a corporate stockholder from the definition "principal managing employee" when it is shown that the involvement of such stockholder(s) in the operations of the applying organization is limited to stock ownership and that such stockholder(s) has no role in the conduct of the organization's operations. 

4.  All persons required to supply information in the application shall by oath or affirmation swear to the veracity of the information supplied by them. 

B.  There shall be no right to renewal of a permit; each application shall be considered as it would be for a new permit notwithstanding that the applicant has previously been issued a permit.

C.  Each application for a permit shall be accompanied by a nonrefundable fee of $500.

D.  Before issuance of a permit, the Director or appropriate designee shall confer with the Chief of Police or proper designee, who shall advise whether or not and on what basis there exists law enforcement concerns about the particular applicant’s suitability to obtain a permit.  If the Chief of Police so recommends, then no permit shall be issued, provided that Council may finally determine, upon appeal by the applicant that permit shall be issued.

(Amended by Ordinance No. 186746, effective August 6, 2014.)

A.  An application for a social game permit shall be denied if the Director of the Revenue Division finds:

1.  That within 5 years of the present application date, the applicant or any person having a financial interest in the private business, private club, or place of public accommodation, or any of the applicant’s officers or principal managing employees has been convicted of, or if evidence exists that supports a finding by a preponderance of evidence, that such person has committed any felony or misdemeanor under federal or state law or this Code relating to theft, fraud, gambling, controlled substances, or prostitution activities; or

2.  That the applicant or any person having a financial interest in the private business, private club, or place of public accommodation, or any of the applicant’s officers or principal managing employees has falsified any statement in the application for permit.

3.  That any violation of federal or State law or this Code relating to gambling has occurred on the premises described in the application.  It shall be prima facie evidence of such violation if any person has forfeited bail on, pleaded nolo contendere to, or been convicted of any offense in violation of federal or State law or this Code relating to gambling or gambling devices where the act charged occurred on the premises described in the permit application.

4.  That the applicant has permitted the commission of any criminal act on the premises described in the application or has failed to maintain the premises in conformance with all the requirements of this Code.

B.  If one or more grounds for denial of a permit as described in Subsection A. of this Section are not established after investigation of the application by the Director with assistance from the Bureau of Police, then the permit shall be issued as soon as practicable.

(Amended by Ordinance No. 186746, effective August 6, 2014.)

A.  The permit required under this Chapter may be temporarily suspended for up to 30 days or revoked by the Revenue Division for any reason that would be grounds for denial of an application for a permit.  Additionally, such permit may be suspended or revoked when investigation reveals that:

1.  Any violation of the provisions of this Chapter or any violation of federal or State law or City ordinance relating to minors, theft, fraud, gambling, obscenity, controlled substances, prostitution, or alcoholic beverages has occurred on or in such premises, or that any such violation was connected in time and manner with the operation of such premises and occurred within the proximity of same; or

2.  Conducting of social games in such location as authorized by the permit causes disorderly or violent acts, litter, noise, vandalism, vehicular or pedestrian traffic congestion, or other similar problems in the area around the permitted premises.

B.  Suspension or revocation shall become effective 5 days after the Revenue Division makes reasonable attempts to notify the permittee in writing of the grounds for revocation or suspension. If the permittee gives notice of appeal to the Revenue Division prior to the effective date of the revocation or suspension, suspension or revocation shall not become effective until the appeal is finally determined.  If the permittee cannot be found after a reasonable effort to locate him or her has been made, then such notice may be sent by certified mail to the permit address, or posted at the same, and shall be deemed acceptable alternative means of service in lieu of personal service.

C.  On a case by case basis, depending upon the severity of the violation and the likelihood of continued unlawful activity on such premises, in lieu of suspending or revoking a permit or to reduce the penalty period involved, with the concurrence of the permittee and the Chief of Police, the Director may order a fine of up to $500 per violation of this Code to be paid to the City's General Fund. Failure to pay the fine within 30 days shall be grounds for revocation or suspension of the social games permit.

(Amended by Ordinance No. 186746, effective August 6, 2014.)  The sole method of appeal of a denial, revocation, or suspension of a permit shall be as follows:

A.  When denying an application for permit, the Revenue Division shall immediately make reasonable attempts to notify the applicant who may appeal within 10 days thereafter.

B.  Upon receipt of notice of appeal of a permit denial, revocation, or suspension, the Director shall appoint a Hearings Officer to hear the appeal.  The Hearings Officer shall conduct a hearing on the matter, giving the permittee and the Revenue Division 10 days notice of the date thereof.  The hearing shall be conducted according the procedures established for contested case hearings in ORS Chapter 183.  The Hearings Officer shall issue a report within 10 days of the hearing, making findings of fact and determining whether the grounds for revocation or suspension given in the notice have been established by a preponderance of the evidence.  The Hearings Officer’s determination shall be final and effective within 10 days of giving notice to the Revenue Division and the permittee, unless appealed to the Council before such time by the aggrieved party.  The Council shall hear and determine the appeal based on the record made at the hearing, but may, at its discretion, hear other evidence.  In all cases, the decision of the Council shall be final.

(Amended by Ordinance No. 186746, effective August 6, 2014.)  All persons who have been issued permits pursuant to this Chapter shall permit entry to premises where social games are conducted to any member of the Revenue Division or any officer of the Bureau of Police, upon presentation of official identification, for the limited purpose of inspecting the premises and any activities, records, or devices involved in such games to ensure compliance with this Chapter. Failure to permit an authorized inspection shall be grounds for suspension or revocation of the involved social games permit.

Where social games are conducted, each permittee shall continuously and conspicuously post notice that is clearly readable and in letters at least 1 inch high that such games must be conducted in accordance with the conditions set forth in this Chapter, which shall be listed in their entirety.

A.  It is unlawful for any person to manage, operate, or profit from any unlawful amusement game or concession.

B.  As used in this Section, "unlawful amusement game or concession" includes the following:

1. Any amusement concession or game in which any physical limitations affecting the degree of skill necessary to win the amusement concession or game are not readily visible to the player, unless notice disclosing such physical limitations is displayed continuously and conspicuously at the location where the amusement concession or game is played, so as to be readily visible to patrons and contestants.

2. Any amusement concession or game where winning depends upon the patron or contestant's ability to throw or project an object, unless all such objects available for use by any single patron or contestant are uniform in size and weight.

3. Any amusement concession or game in which the ability of the patron or contestant to win depends upon throwing or projecting of an object, unless there exists an unobstructed air space of at least 18 inches in height above the highest point of any surface, object, or place upon which that object must land to win the amusement concession or game.

4. Any amusement concession or game in which any target, which must be struck, hit, overturned, broken, or passed through is tilted or inclined in any manner so as to give any advantage to the manager or operator.

5. Any amusement concession or game in which any material has been placed on any target so as to give any advantage to the manager or operator.

6. Any amusement concession or game that utilizes any device, other than the target and the objects to be thrown or projected at that target, which increases or decreases the opportunity of any patron or contestant to win the amusement concession or game.

7. Any amusement concession or game in which the patron or contestant is required to shoot a firearm, air gun, pellet gun, BB gun, or similar device at a target in order to win the amusement concession or game, unless all of the ammunition used in such devices is uniform in type, size, and weight, and the devices are physically attached or controlled to ensure that they can only be pointed toward the target area at all times.

8. Any amusement concession or game in which, as a condition of winning the amusement concession or game, a part or all of a target must be destroyed, unless the patron or contestant is permitted, at his or her request, to inspect the target at any time(s) after he or she has paid to play and has concluded such contest but before he or she has left the amusement concession or game location.