Bill Text: OR HB3124 | 2011 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to gray machines; and declaring an emergency.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Passed) 2011-06-16 - Chapter 382, (2011 Laws): Effective date June 16, 2011. [HB3124 Detail]

Download: Oregon-2011-HB3124-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1175

                         House Bill 3124

Sponsored by Representative BERGER; Representative JENSON,
  Senators JOHNSON, NELSON

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Excludes certain amusement devices from definition of 'gray
machines. '

                        A BILL FOR AN ACT
Relating to gray machines; amending ORS 167.117.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 167.117 is amended to read:
  167.117. As used in ORS 167.108 to 167.164 and 464.270 to
464.530, unless the context requires otherwise:
  (1) 'Bingo or lotto' means a game, played with cards bearing
lines of numbers, in which a player covers or uncovers a number
selected from a container, and which is won by a player who is
present during the game and who first covers or uncovers the
selected numbers in a designated combination, sequence or
pattern.
  (2) 'Bookmaker' means a person who unlawfully accepts a bet
from a member of the public upon the outcome of a future
contingent event and who charges or accepts a percentage, fee or
vigorish on the wager.
  (3) 'Bookmaking' means promoting gambling by unlawfully
accepting bets from members of the public as a business, rather
than in a casual or personal fashion, upon the outcomes of future
contingent events.
  (4) 'Casino game' means any of the traditional gambling-based
games commonly known as dice, faro, monte, roulette, fan-tan,
twenty-one, blackjack, Texas hold-'em, seven-and-a-half, big
injun, klondike, craps, poker, chuck-a-luck, Chinese chuck-a-luck
(dai shu), wheel of fortune, chemin de fer, baccarat, pai gow,
beat the banker, panquinqui, red dog, acey-deucey, or any other
gambling-based game similar in form or content.
  (5)(a) 'Charitable, fraternal or religious organization ' means
any person that is:
  (A) Organized and existing for charitable, benevolent,
eleemosynary, humane, patriotic, religious, philanthropic,
recreational, social, educational, civic, fraternal or other
nonprofit purposes; and
  (B) Exempt from payment of federal income taxes because of its
charitable, fraternal or religious purposes.
  (b) The fact that contributions to an organization profiting
from a contest of chance do not qualify for a 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.
  (6) 'Contest of chance' means any contest, game, gaming scheme
or gaming device in which the outcome depends in a material
degree upon an element of chance, notwithstanding that skill of
the contestants may also be a factor therein.
  (7) 'Gambling' means that 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. 'Gambling' does not include:
  (a) 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.
  (b) 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;
  (C) The tokens may be exchanged only for property other than
money;
  (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.
  (c) Social games.
  (d) Bingo, lotto or raffle games or Monte Carlo events operated
in compliance with ORS 167.118, by a charitable, fraternal or
religious organization licensed pursuant to ORS 167.118, 464.250
to 464.380 and 464.420 to 464.530 to operate such games.
  (8) 'Gambling device' means any device, machine, paraphernalia
or equipment that is used or usable in the playing phases of
unlawful gambling, whether it consists of gambling between
persons or gambling by a person involving the playing of a
machine. Lottery tickets, policy slips and other items used in
the playing phases of lottery and policy schemes are not gambling
devices within this definition. Amusement devices other than gray
machines, that do not return to the operator or player thereof
anything but free additional games or plays, shall not be
considered to be gambling devices.
  (9)(a) 'Gray machine' means any electrical or electromechanical
device, whether or not it is in working order or some act of
manipulation, repair, adjustment or modification is required to
render it operational, that:
  (A) Awards credits or contains or is readily adaptable to
contain, a circuit, meter or switch capable of removing or
recording the removal of credits earned by a player, other than
removal during the course of continuous play; or
  (B) Plays, emulates or simulates   { - a casino game, - }
bingo or keno.
  (b) A device is no less a gray machine because, apart from its
use or adaptability as such, it may also sell or deliver
something of value on the basis other than chance.
  (c) 'Gray machine' does not include:
  (A) Any device commonly known as a personal computer, including
any device designed and marketed solely for home entertainment,

when used privately and not for a fee and not used to facilitate
any form of gambling;
  (B) Any device operated under the authority of the Oregon State
Lottery;
  (C) Any device manufactured or serviced but not operated in
Oregon by a manufacturer who has been approved under rules
adopted by the Oregon State Lottery Commission;
  (D) A slot machine;
  (E) Any device authorized by the Oregon State Lottery
Commission for:
  (i) Display and demonstration purposes only at trade shows; or
  (ii) Training and testing purposes by the Department of State
Police;   { - or - }
  (F) Any device used to operate bingo in compliance with ORS
167.118 by a charitable, fraternal or religious organization
licensed to operate bingo pursuant to ORS 167.118, 464.250 to
464.380 and 464.420 to 464.530  { - . - }  { + ; or
  (G) Any device that is played for amusement purposes that
plays, emulates or simulates a casino game but does not
accumulate credits or return to the operator or player of the
device anything but free additional games or plays. + }
  (10) 'Handle' means the total amount of money and other things
of value bet on the bingo, lotto or raffle games, the value of
raffle chances sold or the total amount collected from the sale
of imitation money during Monte Carlo events.
  (11) 'Internet' means an interactive computer service or system
or an information service, system or access software provider
that provides or enables computer access by multiple users to a
computer server and includes, but is not limited to, an
information service, system or access software provider that
provides access to a network system commonly known as the
Internet, or any comparable system or service and also includes,
but is not limited to a World Wide Web page, newsgroup, message
board, mailing list or chat area on any interactive computer
service or system or other online service.
  (12) 'Lottery' or 'policy' means an unlawful gambling scheme in
which:
  (a) 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 the winning ones;
  (b) The winning chances are to be determined by a drawing or by
some other method; and
  (c) The holders of the winning chances are to receive something
of value.
  (13) 'Monte Carlo event' means a gambling event at which wagers
are placed with imitation money upon contests of chance in which
players compete against other players or against the house.  As
used in this subsection, 'imitation money' includes imitation
currency, chips or tokens.
  (14) 'Numbers scheme or enterprise' means a form of lottery in
which the winning chances or plays are not determined upon the
basis of a drawing or other act on the part of persons conducting
or connected with the scheme, but upon the basis of the outcome
of a future contingent event otherwise unrelated to the
particular scheme.
  (15) 'Operating expenses' means those expenses incurred in the
operation of a bingo, lotto or raffle game, including only the
following:
  (a) Salaries, employee benefits, workers' compensation coverage
and state and federal employee taxes;
  (b) Security services;
  (c) Legal and accounting services;
  (d) Supplies and inventory;
  (e) Rent, repairs, utilities, water, sewer and garbage;
  (f) Insurance;
  (g) Equipment;
  (h) Printing and promotions;
  (i) Postage and shipping;
  (j) Janitorial services and supplies; and
  (k) Leasehold improvements.
  (16) 'Player' means a person who engages in any form of
gambling solely as a contestant or bettor, without receiving or
becoming entitled to receive any profit therefrom other than
personal gambling winnings, and without otherwise rendering any
material assistance to the establishment, conduct or operation of
the particular gambling activity. A person who gambles at a
social game of chance on equal terms with the other participants
therein is a person who does not otherwise render material
assistance to the establishment, conduct or operation thereof by
performing, without fee or remuneration, acts directed toward the
arrangement or facilitation of the game, such as inviting persons
to play, permitting the use of premises therefor and supplying
cards or other equipment used therein. A person who engages in
bookmaking is not a player.
  (17) 'Profits from unlawful gambling' means that a person,
acting other than solely as a player, accepts or receives money
or other property pursuant to an agreement or understanding with
another person whereby the person participates or is to
participate in the proceeds of unlawful gambling.
  (18) 'Promotes unlawful gambling' means that a person, acting
other than solely as a player, engages in conduct that materially
aids any form of unlawful gambling. Conduct of this nature
includes, but is not limited to, conduct directed toward the
creation or establishment of the particular game, contest,
scheme, device or activity involved, toward the acquisition or
maintenance of premises, paraphernalia, equipment or apparatus
therefor, toward the solicitation or inducement of persons to
participate therein, toward the conduct of the playing phases
thereof, toward the arrangement of any of its financial or
recording phases or toward any other phase of its operation. A
person promotes unlawful gambling if, having control or right of
control over premises being used with the knowledge of the person
for purposes of unlawful gambling, the person permits the
unlawful gambling to occur or continue or makes no effort to
prevent its occurrence or continuation.
  (19) 'Raffle' means a lottery operated by a charitable,
fraternal or religious organization wherein the players pay
something of value for chances, represented by numbers or
combinations thereof or by some other medium, one or more of
which chances are to be designated the winning ones or determined
by a drawing and the player holding the winning chance is to
receive something of value.
  (20)(a) 'Slot machine' means a gambling device that as a result
of the insertion of a coin or other object operates, either
completely automatically, or with the aid of some physical act by
the player, in such a manner that, depending upon elements of
chance, it may eject something of value or otherwise entitle the
player to something of value. A device so constructed or readily
adaptable or convertible to such use is no less a slot machine
because it is not in working order or because some mechanical act
of manipulation or repair is required to accomplish its
adaptation, conversion or workability. Nor is it any less a slot
machine because apart from its use or adaptability as such it may
also sell or deliver something of value on the basis other than
chance.
  (b) 'Slot machine' does not include any device authorized by
the Oregon State Lottery Commission for:
  (A) Display and demonstration purposes only at trade shows; or
  (B) Training and testing purposes by the Department of State
Police.
  (21) 'Social game' means:
  (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;
and
  (b) If authorized pursuant to ORS 167.121, 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.
  (22) 'Something of value' means any money or property, any
token, object or article exchangeable for money or property, or
any form of credit or promise directly or indirectly
contemplating transfer of money or property or of any interest
therein.
  (23) 'Trade show' means an exhibit of products and services
that is:
  (a) Not open to the public; and
  (b) Of limited duration.
  (24) 'Unlawful' means not specifically authorized by law.
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