Chapter 14B.110 Amusement Devices, Games and Machines

The purpose of this Chapter is to provide for the strict regulation of amusement devices, games and machines in order to reduce the potential for unlawful gambling, adverse neighborhood impacts, and adverse impacts on the welfare and education of children in the City, and to raise revenue.

(Amended by Ordinance No. 186746, effective August 6, 2014.)  As used in this Chapter, unless the context requires otherwise:

A.  “Amusement device” means any machine, device, or game, including foosball or table soccer games, billiards or pool tables, shuffleboard, shooting gallery devices, miniature bowling games, electronic games of skill, video games, and other similar machines, devices, or games:

1.  Which are made available for display or operation; and,

2.  Which require the payment of money or other valuable consideration.

3.  “Amusement device” shall not include:

a.  Ping pong tables, music devices, vending machines, or any rides where no element of chance, bonus, or prize is involved; or

b.  Video lottery games, game terminals and equipment operated directly by the Oregon Lottery Commission as a state agency.

B.  “AmusementCenter” means any location where a person makes seven or more amusement devices available for operation or play at any one time, but excluding any location that:

1.  Derives at least 50 percent of its gross income from the sale of food; or,

2.  Possesses a current, valid license authorizing the on‑premises consumption of alcoholic beverages; or,

3.  Is operated primarily as a movie theater, bowling alley, skating rink, or other similar establishment, which displays or operates amusement devices only during the hours that such establishment makes its primary service or activity available to the public.

C.  “Director” means the Director of the Bureau of Revenue and Financial Services Revenue Division, or his or her designee.

D.  “Display or operation” means to make any amusement device available to the public for use or play, for the purposes of displaying or exercising skill or for amusement, at any public or private location.

E.  “Location” means any business establishment, public or private club, association, or any other site where a person makes any amusement device available for display or operation, excepting only private residences in which such amusement devices are available only for display or operation at no cost to the player.

F.  “Person” means any real person, or any partnership, association, corporation, or other form of business organization.

A.  Enforcement. The Director is authorized to enforce all provisions of this Chapter.

B.  Procedures and forms. The Director may adopt procedures and forms to implement the provisions of this Chapter.

A.  It shall be unlawful for any person to make available for display or operation any amusement device in which the outcome does not depend in a material degree upon an element of chance, unless all required permits have been obtained, and the display or operation of the amusement device comply with all applicable provisions of this Chapter and of the statues of the State of Oregon.

B.  The provisions the this Section shall not exempt any amusement device from any applicable provisions of the Internal Revenue Code requiring federal gaming device tax stamps, or any applicable provisions of the statues of the State of Oregon.

A.  It shall be unlawful for any owner of a location to display or make available for operation any amusement device described in Subsection 14B.110.040 without first obtaining a valid Location Permit for the location. Location Permits shall be classified with respective nonrefundable fees, as follows:

B. It shall be unlawful for any owner of an amusement center to display or make available for operation any amusement device described in Subsection 14B.110.040 without first obtaining a valid Amusement Center Permit. Amusement Center Permits shall be classified with nonrefundable fees according to the number of devices at the location as set forth above.

C.  In lieu of all other permits required by this Chapter, any person may make any amusement device described in Section 14B.110.040 available for display or operation, for one continuous time period not exceeding 90 days in any calendar year, by obtaining a Temporary Location Permit, which shall require the payment of a nonrefundable fee of $250.

D.  All permits issued under this Chapter, except Temporary Location Permits, shall be valid for the calendar year of issue, and shall expire on December 31 of that year. All permits shall contain information regarding the permittee’s identity. No permit issued under this Chapter shall be transferable or assignable under any circumstances.

E.  No provision in this Chapter shall be construed to permit the use of any amusement device in violation of State or federal law, or of any of the other provisions of this Code other than those specifically referred to herein.

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

A.  Applications for all permits required by this Chapter shall be made to the Revenue Division on forms provided by the Revenue Division.  The applicant shall provide all the information relating to the purposes of this Chapter required on the form by the Revenue Division.  Failure to provide any information requested on this form may be cause to deny the requested permit.

B.  The Director shall approve issuance of permits after payment of the required fee, completion of the application form and following an investigation of the applicant.  However, the Director shall deny a permit application if:

1.  The applicant has been convicted of any offense related to minors, juveniles, gambling, obscenity, controlled substances, prostitution or alcoholic beverages;

2.  Any person has been convicted of any offense relating to minors, juveniles gambling, obscenity, controlled substances, prostitution or alcoholic beverages occurring at the location for which the permit is to be obtained;

3.  Any statement in the application is found to be false;

4.  The applicant has been a principal owner, operator, manager or supervisor of an amusement location and the activities or patrons of such business caused a significant increase in harassing, disorderly or violent acts, criminal activity, vandalism, litter, liquor law violations, noise or traffic congestion in or around such business;

5.  In the Director’s opinion, after investigation of the proposed location of an amusement location, the proposed site would be reasonably likely to result in an increase in those acts noted in part (4) of this Subsection;

6.  The business operation as proposed by the applicant would not comply with all applicable requirements of this Code, including, but not limited to, the Building, Health, Planning and Zoning and Fire Codes of the City;

7.  The permitted amusement center would be located within 100 feet of any residential zone established by the Planning and Zoning Code or any location within 500 feet of any public or private elementary, junior high or high school or playground, this distance to be measured in a straight line without regard to intervening structures or obstacles from the nearest point of the school property or residential zone to the nearest point of the structure in which the permitted amusement devices would be operated; or,

8.  The proposed location of the business operation requiring a Location Permit, would be a detriment to the immediate vicinity due to congregation of pedestrian or vehicular traffic.

C.  Notwithstanding Subsection B. above, the Director with the concurrence of the Chief of Police may issue a conditional permit if the applicant establishes to the Director’s satisfaction that:

1.  The behavior evidenced by such factor is not likely to recur;

2.  The behavior evidenced by such factor is remote in time; or,

3.  The behavior evidenced by such factor occurred under circumstances which diminish the seriousness of the factor as it relates to the purpose of this Chapter.

4.  Under this Subsection, the Director may only issue a permit containing conditions directed at ensuring that such factor shall not recur.

D.  Denial of a permit may be appealed by the applicant by filing written notice of an appeal as provided in Section 14B.110.140.

A.  Any person issued any permit for any amusement device shall supervise the use and operation of such device to prevent its use or operation for any purposes contrary to the provisions of this Chapter or any other violation of the provisions of the City Code or applicable State statutes.

B.  Displaying Permits.

1.  All location, amusement center, and temporary location permits issued under this Chapter shall either be:

a.  Securely affixed to the permitted amusement device;

b.  Displayed so as to be visible to the public at all times such device is in a location open to the public; or,

c.  Visible to the public in the same room as the permitted amusement device.

2.  If affixed to the amusement device, the permit must be visible for inspection without removing any portion of the amusement device, or any other obstacle, and without physically moving the amusement device from its normal operating position.

3.  The entire face of any displayed permit shall be visible.  The permit shall be displayed or affixed during its entire term.

C.  Any person issued a Location Permit, or a permit to operate an amusement center, shall operate, maintain and supervise the permitted business and its premises, including parking facilities, to prevent:

1.  Violations of the provisions of the Portland City Code, state, or federal law, relating to juveniles, minors, alcoholic beverages, gambling, obscenity, controlled substances, prostitution, or crimes against persons or property as defined by the Oregon Revised Statutes, that are connected in a time and manner with the operation and proximity of such premises;

2.  Harassing or disorderly acts on, in, or around such premises; and,

3.  Any significant increase in litter, noise, vehicular or pedestrian traffic congestion, or other locational problems in the area around such business.

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

A.  Any person issued permits under this Chapter, or who controls any location in which a permitted amusement device is located, shall permit any Revenue Division representative or Bureau of Police officer upon presentation of official identification, to enter such location for the limited purposes of inspecting all records, amusement devices and premises regulated under this Chapter, to which the public has access, to ensure compliance with the provisions of this Chapter.

B.  Inspections under this Section shall be authorized only during normal business hours.

C.  Failure to permit an inspection authorized under this Section shall be grounds for suspension or revocation of any permit required under this Chapter.

A.  It shall be unlawful for any person to make an amusement device available for use or operation without first obtaining all permits required pursuant to this Chapter.

B.  It shall be unlawful for any person in control of an amusement device to display an expired permit.

C.  It shall be unlawful for any person to possess or control an amusement device which has any paper, sticker, tag or other device affixed, attached or placed on the device which purports to be a permit issued by the City or implies that the City has issued a permit when the paper, sticker, tag or other device was not issued by the City.

D.  It shall be unlawful to knowingly or intentionally use or permit the use or operation of an amusement device for any gambling purposes, whether by operation of the amusement device or based upon results obtained through use or operation of the device.

E.  It shall be unlawful for any owner to transfer ownership of any amusement location permitted under this Chapter without first removing the permit from the location.

F.  It shall be unlawful for any person to sell, rent, give, loan or otherwise assign or transfer any permit issued under this Chapter.

G.  It shall be unlawful for any person to operate an amusement center without having a permit issued pursuant to this Chapter.

A.  The Director may suspend or revoke any permit issued under this Chapter upon finding reasonable grounds to believe, based upon an investigation, that:

1.  Cause exists which would otherwise be grounds for the denial of such permit;

2.  An intentional or knowing violation by the permittee of any provision of this Chapter has occurred; or,

3.  Any violation by any person of any City ordinance or state or federal statute has occurred relating to gambling while using, operating or playing any such amusement device.  Persons holding permits shall be considered to be responsible for any gambling activity of any employee relating to any permitted amusement device.  Pursuant to this Section, permits may be suspended or revoked for any violation of law relating to gambling activity relating to permitted amusement devices or premises.

B.  A suspension or revocation ordered by the Director shall not become effective until the permittee is served with written notice of the suspension or revocation, the reasons therefor, and the limited right of appeal pursuant to Section 14B.110.140, either personally or by delivery or posting of the notice at the location of the involved amusement device or business.  The suspension or revocation may be appealed by filing written notice of an appeal as provided in Section 14B.110.140.

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

A.  Upon a determination that any provision of this Chapter has been violated, the Director shall issue a written Notice of Violation and assess civil penalties.  The notice shall state the nature of the violation, the date of the violation, and the date by which such violation must be corrected and any civil penalties which must be paid to prevent the amusement device from being sealed.  The person responsible for the violations shall be allowed 5 days in which to correct the violation.

B.  Sealing of Amusement Devices.

1.  If a violation is not corrected and civil penalties paid within the time period allowed in Subsection A. above, the Director may seal the coin slot of any amusement device involved in the violation.  If an amusement device is sealed, the Director may remove the seal only if the person responsible for the violations has corrected the violations and paid any penalties imposed under this Chapter.

2.  It shall be unlawful for any other person other than the Director to remove or alter a seal.  If a seal is unlawfully removed or altered, the sealed amusement device shall be subject to seizure and destruction pursuant to this Section.

3.  If within a single calendar year a permittee has been issued a Notice of Violation, the Director may seal any amusement device and impose penalties for all further violations by that permittee within that calendar year without first issuing a Notice of Violation or allowing time to correct the violations.

C.  A sealed amusement device shall be subject to seizure and destruction as a public nuisance if:

1.  The violation is not corrected and all penalties paid within 5 days of sealing; or

2.  Upon the occurrence of any subsequent violations of this Section by any one owner or lessor within any calendar year.

D.  The Bureau of Police shall assist the Revenue Division in the seizure of the amusement device.  The City Attorney is authorized to bring any suit or action for the destruction of the amusement device as a public nuisance.

E.  The owner of any amusement device seized for destruction may, within 10 days of the permittee being served with written notice of such seizure, file a written notice of appeal as provided in Section 14B.110.140.

A.  The Director may impose civil penalties for violations of the provisions of this Chapter according to the following schedule:

1.  Sealed amusement device removed from location: the penalty shall be up to $50 per amusement device.

2.  Failure to obtain proper location permit:  the penalty shall be up to $50 per amusement device.

3.  The unlawful removal of seal from amusement device: the amusement device shall be subject to seizure and destruction pursuant to Section 14B.110.110.

B.  Calculation of Civil Penalties.

1.  In calculating the amount of the civil penalty to be imposed for violations of the provisions of this Chapter, the Director shall consider:

a.  The extent and nature of the person’s involvement in the violation;

b.  The economic or financial benefit accruing or likely to accrue as a result of the violations;

c.  Whether the violations were repeated or continuous, or isolated and temporary;

d.  The magnitude and seriousness of the violation;

e.  The City’s costs of investigating the violations and correcting or attempting to correct the violation; and,

f.  Any other factor the Director deems to be relevant.

2.  The Director shall provide notice of the assessment of civil penalties in the Notice of Violation under Section 14B.110.110 A.

C.  No person assessed a penalty under this Section shall be issued a permit under this Chapter until all such penalties have been paid in full.

D.  Civil penalties imposed pursuant to this Section shall be the only penalties authorized for such violations.

E.  Any person assessed a penalty may, within 10 days of receiving such written order, file a written notice of appeal as provided in Section 14B.110.140.

Except as provided in Section 14B.110.120, the intentional or knowing violation of any provision of this Chapter is punishable upon conviction by a fine of not more than $500 or by imprisonment for not more than 6 months, or both.

A.  The filing of a notice of appeal to the Code Hearings Officer, as set out in Chapter 22.10 of this Code, of revocation or suspension of a permit, or of any civil penalty imposed by the Director under this Chapter, or of any seizure of an amusement device for destruction, shall stay the effective date of the action until the appeal is determined by the Code Hearings Officer.

B.  The notice of appeal shall be in writing.  The notice shall state the name and address of the appellant to which all required notices may be mailed.  The notice shall also indicate the reasons why the appealed action was wrong and what the correct determination should be.