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Gambling in California and

Multi-State Gambling Law Surveyby Donald Leonhardt & Elaine Paplos

Introduction

This paper addresses the issues that, given the trends in California gambling growth, areripe for the state legislature. The discussion includes existing expansion of cardroomgambling, as well as the turmoil surrounding the growth of and disputes over Indian tribalcasino operations. The discussion also introduces new forms of gambling, yet to beregulated.

The second part of this paper is a comprehensive survey of gambling law in the UnitedStates. The survey compiles in table format how each state handles a variety of gamingmatters, such as card clubs, bingo, and "Nevada-style" gaming. The authors have alsoattempted to note those provisions of state law that are noteworthy or unique.

Growth in Gambling

Legalized gambling has become a $300 billion a year industry. [1] The last two decadesevidenced growth from new gambling options, such as off-track betting, river boatgambling, and state lotteries. Most states permit legal state lotteries and racetracks,accepting wagers on horse races, dog races, and jai alai. In addition, the majority ofstates have decriminalized social, low-stakes gambling, though mostly in practice, not inlaw. [2] Currently, only the states of Utah and Hawaii do not permit some form oflegalized gambling. [3] Additional legalization proposals to expand legitimate gaminghave inundated all of the other states. Trade publications such as Casino Gaming andInternational Gaming & Wagering Business report when new forms of gambling becomelegal, but they are unable to keep track of the numerous bills proposed to statelegislatures, nationwide. [4] The most prevalent growth in the gaming industry reflects theexpansion of state lotteries, cardrooms, and Indian tribal gambling. [5]

Trends in Gross Wagering in the United States (In Billions): 6

Wagering Gross Wagering1982

Gross Wagering1992

PercentIncrease

Pari-Mutuels $ 14.529 $ 17.841 22.8%

Bingo $ 3.000 $ 4.306 43.5%

Casinos $ 101.400 $ 252.893 149.4%

CharitableGames $ 1.200 $ 4.775 297.9%

Lotteries $ 4.088 $ 24.362 495.9%

Card Rooms $ 1.000 $ 8.428 742.8%

Indian Gaming ----- $ 15.174 N/A

TOTAL $ 125.755 $ 399.889 162.3%

As the third largest state with respect to gross wagering, [7] California's gaming activitiescomprise a large impact on the above national statistics. Only Nevada and New Jersey,with their comparatively permissive (though regulated) gambling out-wager California.While California's position may seem high, this estimate does not even include revenuesfrom Indian tribal casino operations in the state.

California Trends in Gross Wagering (In Billions): 8

Wagering Gross Wagering 1992

Pari-Mutuels $ 2.660

Bingo $ .330

Charitable Games $ .535

Lotteries $ 1.496

Card Rooms $ 7.500

Indian Gaming N/A

Total $ 12.523

As casino-style gaming is prohibited in California, future growth potential is limitedprimarily to card rooms and Indian reservations. The other forms of legitimate gaming inthe state (as listed above) have shown negligible changes in growth of revenues. Forexample, California's state lottery remains sixth in the nation in terms of gross ticketsales. The California State Lottery remains one of the largest, if not the largest, purchaserof radio advertising in Los Angeles, [9] however, the sales are comparatively less thanwhen the lottery was introduced in 1985-86. [10] Also, California's revenues as thesecond largest pari-mutuel betting state (New York being the largest) reflect a nationalrecession in wagering in the horse racing industry. Since 1989, revenue for pari-mutuelbetting in California horse racing has only grown by less than one percent. [11] Withrespect to bingo gaming, the California Attorney General's Registry of Charitable Trustsreported a trend of consolidation in 1993. [12] Although gross revenues for bingooperations increased, the number of organizations reporting to the Registry of CharitableTrusts decreased by over 20% to 333 charities. These statistics indicate that bingo is notgrowing so much as an industry, but consolidating into big businesses.

Accompanied with the growth of cardroom gaming and Indian tribal casinos is the needfor regulation. The California Horse Racing Board staffs fifty-eight employees and twenty-five investigators to regulate nearly three billion dollars in gross annual wagering. TheState Lottery Commission retains 800 employees and thirty agents to oversee $1.79billion in gross ticket sales. Cardroom revenues, accumulating seven and one-half billiondollars annually, overshadow these two forms of gambling put together. Shockingly, onlythree permanent positions in the California Department of Justice are delegated to theGaming Registration Unit. [13] These three employees in the state Attorney General'soffice conduct background checks for applicants attempting to build or expand cardroomoperations in the state. Other regulation of operating activities and enforcement ofcardrooms is left to local authorities. [14] And, no state regulatory agency oversees Indiangaming in the state. [15]

Current Issues in California Gambling

I. Cardrooms

If left unchecked, cardroom growth is expected to quadruple the number of tables inCalifornia over the next few years, from 1774 to 5429. [16] The latest statistics estimatethe existing cardroom industry to be a $8.4 billion business. [17] Part of the increase inrevenues is attributed to the introduction of Asian card games. Beginning in 1985,cardrooms introduced high-stakes, Asian games, such as Pai Gow and Super Pan. [18]These games are played rapidly, allowing cardrooms increased revenue production, withmore hands played in a time period, compared to conventional poker.

Lax regulation in the cardroom industry has created a "vacuum," as described byAttorney General Dan Lungren, ripe to attract criminal activity. [19] For example, LosAngeles Sheriff's Department recently uncovered evidence from Bell Gardens BicycleClub's security cameras, recording a $60,000 money-laundering transaction. [20] Lastyear, the club's manager of Asian card games was indicted for federal loan-sharking andracketeering offenses. Also, many card clubs contribute a large share of revenue to localmunicipalities. This fiscal influence translates to political clout as well, as the clubs wieldinfluence over local politicians and law enforcement authorities. [21]

The concerns over crime and corruption have provided the impetus for legislative reformto bolster regulation. However, for over three years of efforts in the California legislature,internal politics have nipped the bud of reform. The latest attempt at regulation, AssemblyBill 11, sponsored by Assemblyman Phil Isenberg, would have repealed the (current)Gaming Registration Act in favor of the Gambling Control Act. [22] The bill called for thecreation of a new California Gaming Control Commission. The five-member commissionwould be chartered to limit any perceived opportunity of organized criminal activitiesassociated with cardroom gaming. The commissions duties would chiefly includeapproval, denial, and revocation of gaming licenses. However, this Nevada-stylecommission would have expanded duties, beyond screening applications for cardrooms,which only entails background checks and financial reviews of operators. The legislativemeasure would have also granted the commission authority to monitor gamingoperations, look into complaints and violations, conduct audits, and seize gamblingassets when necessary. [23] The bill also imposed a per table fee of up to $4,200 and anannual licensing fee of $3,700. The bill, however, failed to clear the California SenateCommittee on Rules as of September 6, 1995.

The contest over this years gambling reform legislation centered around numerousfinancial interests and public policy concerns. Some believed the proposed regulatorybody would open the door to expand gambling operations in California. Others fearedregulation may be used to keep expansion out of the state. Still, other critics, such asSenate leader Bill Lockyer (D-Hayward) viewed the proposal, backed by Dan Lungren, asa new, "empire building," tax scheme to increase the attorney general's authority in office.[24]

Several business interests have monitored and lobbied on the issue of cardroom gamingreform. Over the past four years, the gambling industry spent over $5 million in campaigncontributions and lobbying efforts. [25] This is not surprising considering the amount ofrevenue cardroom wagering generates. One of the interest groups, wary of regulatoryreform similar to the Gambling Control Act, are the established card clubs. Their primaryconcern is fear of competition, especially from new, larger facilities. Isenberg andLungren's regulatory schemes over the last four years give the green light to allowpublicly-traded corporations own and operate cardrooms. [26] Currently, out-of-statecorporations may not own stock in California card clubs. With the exception of existingpari-mutuel tracks, only individuals, not corporations, may possess card club licenses.[27] Large entities such as Bally's, Las Vegas Hilton and Caesar's have sought access toCalifornia cardroom ownership, as out-of-state ownership is permitted in Nevada.Another concern of existing cardroom owners is the inclusion of radius limitations. Radiuslimitations would prohibit new card clubs form being built within a specified radius ofexisting clubs. [28]

The horse racing industry is another strong lobby interested in the scope of cardroomgaming reform. Under current law, all California pari-mutuel race track facilities arepermitted to hold a card club operator's license for card clubs located at their trackproperty, at least until January 1, 1999; [29]the state law permits existing pari-mutuelrace tracks to pursue new cardroom licenses subject to local authorization. Tracks withexisting clubs advocate measures to protect their entrenched enterprises. Othersinvolved with horse racing fear that regulation may open or close the door to future "full-blown" casino gambling. [30] In anticipation of gambling expansion, the new HollywoodPark facility constructed and wired its card club to include the capacity for electronicgaming devices, such as video poker and slot machines. Yet, other tracks withoutcardroom licenses believe the threat of casino gambling will usher in their financialdemise.

A third interested group are out-of-state gambling enterprises who want to limit Californiagambling. Large companies with casino investments in Las Vegas, Reno, and LakeTahoe do not want expanded gaming operations in California, rather, these casinooperators want Californians to continue to travel to Nevada with their gambling dollars.[31] For these companies, regulatory legislation can check undesirable legitimization ofgaming devices, such as slot machines and video poker. Other concerns for large, out-of-state casino operators have been to allow investment into the California market, to buildnew clubs or buy into existing establishments.

A fourth group of interested players is the Indian gaming establishment. Indian gamingwould not be directly affected by cardroom legislation, as tribes are federally regulated[32], though expansion of card clubs would create competition for existing Indian tribecasinos. As Indian casinos are located on tribal lands, mostly outside of metropolitanareas, urban cardrooms would seemingly infringe on the Indian casinos revenue. Many

tribes, however, support state regulation of cardrooms.

II. Indian Gaming 33

A. Legal Framework

Of the $15.174 billion dollars wagered nationally on Indian gaming, the Attorney General'soffice believes that tribal casinos in California contribute a sizable portion of that total. [34]Over twenty of the 104 Indian tribes and bands in California have turned gambling into aprofitable business. [35] The Sycuan tribe, east of San Diego, used its gambling revenuesto construct new homes, a health clinic, police and fire departments, and a tribal center.[36]

The seminal case opening the door for Indian gambling was California v. Cabazon Bandof Mission Indians, 480 U.S. 202 (1987). [37] In Cabazon, the Court was looking at bingolaws in California. The Court found that where the state permitted even restricted bingo(i.e. limited stakes, gaming hours, etc.), its laws were "regulatory" and not "prohibitory."The latter could be applied against tribes, the form could not. The result was that if a statepermitted any type of bingo, the tribes could also offer the game, free of stateinterference.

As a result of Cabazon, Congress enacted the Indian Gaming Regulatory Act (IGRA) in1988. [38] IGRA divides gambling into three classes: [39] Class I gaming consists of"social games played for prizes of minimum value or traditional forms of Indian gamingengaged in by individuals as part of, or in connection with, tribal ceremonies orcelebrations;" Class II gaming, which includes nonbanking games in which players do notbet against the house, Bingo and card games which are not expressly prohibited by thestate are permitted; Class III gaming is defined as games not included in Class I or II,including "electronic or electromagnetic facsimiles of any game of chance or slotmachines of any kind."

IGRA allows unencumbered Class I gaming, regulated by the tribes themselves. Tribesmay conduct class II gaming if the state permits any similar game, and they regulatethemselves subject to National Indian Gaming Commission oversight. The class IIprovisions essentially codify Cabazon. Class III gaming may only be conducted if thestate permits similar games, and then only if the tribe and state enter into a compact toestablish a method of regulation.

B. Current Issues

Current controversy has surrounds the use of gaming devices similar to slot machines inCalifornia's tribal casinos. Indian tribes in the state operate an estimated 8,300 gamingdevices on their reservation casinos. [40] These devices resemble traditional one-armedbandit slot machines, but operate slightly different: players feed paper bill currency intothe machines' and push buttons. When a player cashes out, they push a button on themachine and a redeemable receipt emerges, exchangeable for cash. [41] The gamesinclude video poker, video keno, and a variation of a matching game, similar to the typicalthree-object slot machine. California does not allow banked or percentage card gambling,which falls under Class III. With the uncertain exception of video lottery machines (videokeno), slot machines are prohibited under California law. [42]

This case was recently decided by the U.S. Court of Appeals for the Ninth Circuit. InRumsey Indian Rancheria v. Wilson, 64 F.3d 1250 (9th Cir. 1994), the court ruled that the"fact that California allows games that share some characteristics with banked andpercentage card gaming . . . is not evidence that the State permits the Proposed GamingActivities." [43] The court also rejected the argument that if the state lottery is nottechnically a slot machine, it is functionally similar to one.

The Ninth Circuit further defined the contours of state-tribe compact requirements.Rumsey held that IGRA does not mandate a state to negotiate over a form of Class IIIgambling, even if it has legalized another, similar form of gaming. [44] Currently, theRumsey decision is pending United States Supreme Court appeal. The court followed asimilar case decided in the U.S. Court of Appeals of the Eighth Circuit. [45]

However, given the illegal status of many of the gaming devices, and the uncertainlegitimacy of the video keno devices, law enforcement issues remain a problem for tribalcasinos. The Ninth Circuit has recently held, in Sycuan Band of Mission Indians v.Roache [46] that California lacks jurisdiction to enforce its laws against proscribed ClassIII gaming activities on tribal lands. [47] IGRA grants exclusive jurisdiction to the federalgovernment, to be enforced by the U.S. Department of Justice. Past attempts by the stateto shut down casinos operating the devices have been aborted by injunctive mandates.[48]

C. Possible Legislative Developments

Pending legislation in Congress may result in a plethora of regulation options to controlthe present, multi-billion dollar tribal industry. A pending bill sponsored by Senator JohnMcCain (R-Arizona) would federalize tribal gambling: a new, independent tribal gamingcommission would be created with the power to create and enforce regulations. [49] Thecommission would be similar in power and in scope to Nevada's gaming commission.Also, the Department of the Interior appropriations bill proposes to reduce the budget tothe Bureau of Indian Affairs by twenty percent; tribal gambling will take up the slack inappropriations. [50] Another bill in Congress would impose a thirty percent tax on Indiangaming profits. These measures, as viewed by some Native Americans, may constitutean attack on Indian sovereignty; tribes contend that treaties ceded land in exchange forservices and the freedom to pursue economic opportunities on reservation land.

California may undermine tribal gaming operations by legalizing Class III activities inmetropolitan areas. California may choose to compete with Nevada casinos directly.Indeed San Francisco mayor Willie Brown initially backed a proposal to open casinooperations on Treasure Island, in the San Francisco Bay during his campaign. [51]However, this action would require passage of a Constitutional amendment similar to thestate lottery amendment. Three Initiatives to regulate and/or expand gaming in Californiaare pending state Attorney General review. [52] Legalizing expanded operations inCalifornia will have two effects: First, the tribes will be able to offer any of the gamesallowed under the new state laws, and second, state licensed casinos would cut sharplyinto tribal gaming revenues, offering a convenient alternative to current gamblers drivingout to reservations or traveling to Nevada.

III. New Forms of Gambling

A. "900" Number Telegambling Services

Nurtured by technological developments, new forms of gaming promise to createexpansive growth in future state gambling. One of the more established technologiesaugmenting gaming activity is the business of toll, "900" telephone numbers. Legalgaming operations in states such as Nevada provide these toll numbers to facilitatebookmaking. However, the service numbers, legal in the state of operation, areaccessible to Californians where the offered services are not permitted. This unregulatedactivity raises issues of undetermined jurisdiction. One of the pertinent questions is wherethe gaming activity is taking place when Californians call out-of-state bookmakers.Bookmaking operators argue that the wagering takes place in Nevada, where it is legal.These calls may be analogous to physically traveling into Nevada to conduct legalgaming. However, the fact that communication originates and continues back and forthfrom a jurisdiction prohibiting the activity presents a problem. Although the subject is yetto be decided by a court of law, the out-of-state wagering may constitute wire fraud.Other related issues may include the extent to which bookmakers solicit business outsideof the legal jurisdiction. However, the fact that bookmakers advertise their activities inCalifornia is not necessarily illegal. For example, several Las Vegas casinos currentlyadvertise gambling activity in California.

While not regulated at present, laws could be enacted to curtail Californians from usingthe "900" number services, if the practice is deemed illegal. Interstate regulation couldrequire the bookmakers to inquire as to the call's point of origin, and bookmakers couldbe required to refrain from taking prohibited wagers. Also, given the fact that phonecompanies have the ability to block "900" services for callers, California could require itsPublic Utility Commission to coordinate a state-wide blockage of these numbers.

B. Internet Virtual Casinos

A larger source of unregulated gambling growth stems from the development of theInternet. The Internet creates a world information marketplace with little existingregulations on gaming activity. As with telegambling, gambling providers may developactivities where they are legal. However, the scope of activities extends far beyondbookmaking services; enterprises have created virtual casinos for Internet subscribers allover the world. [53] Last year world gambling revenues passed $450 billion; financialforecasters are predicting $10-$20 billion per year for Internet gambling within the nextfive years, with most of the revenue accruing from Europe and Asia. [54]

Confusing the legal implications of these services is the notion of where informationaltransactions occur. The intrinsic nature of the Internet creates a global communicationsnetwork for information transfer, obfuscating state and national jurisdictions. Informationpasses around the world through numerous network conduits. Transactions take place incyberspace, an abstract, omnipresent location spanning the entire network. Therefore, itis confusing as to who may enforce laws restricting activities conducted on the Internet;no single state entity exercises control or dominion over the Internet.

Technology has created other obstacles to enforcement. Even if California enacts lawsto prohibit its citizens from Internet gambling, the development of encryption programswill limit enforcement capabilities. The ability to encrypt data secures the identity andtransactions of clients patronizing gambling sites on the Internet. For example, SportsInternational, one of the world's largest offshore sports and gaming enterprises, provides

licensing of its patented encryption and security technology in association with itsupcoming Internet Gaming and Internet Global Casinos programs. [55] Recently, a SanFrancisco-based company, Venture Tech, announced its intent to enter into a licensureagreement for operations in Asia and Europe) with Sports International. Sports' president,Mike Simone, guarantees the confidentiality of client activities and transactions via anencryption process. Thus, even if consumers were gambling illegally, law enforcementmay never be privy to the gambler's identity or the nature of their transaction.

Given the unregulated nature of the Internet and the huge potential for profit, the futureof gambling regulation in the electronic realm leaves many unanswered questions as tohow and if this medium may be controlled. [56]

C. Public Opinion Related to Gambling Opportunities

A recent Field Institute report indicates that California public opinion reflects a tentativeaffirmation to expand legalized gambling activities in the state. [57] While nearly two-thirds of Californians surveyed approve of allowing more gaming activities to generateincreased tax revenue, the public remains equally divided as to extending Nevada-stylecasinos, more card rooms, or sports booking to California. [58] Over half of the surveyedresidents endorsed the creation of a state commission to regulated cardroom activities aswell as any permitted Nevada-style casino gaming. Also noted from the Field Institutesurvey is the countervailing concern by nearly two-thirds that legalized gamblingencourages fiscal irresponsibility, tempting people to gamble away resources they needto support their families. Thus, while Californians would permit more gaming to gleanmore tax revenue, expansion is contingent on increased state regulation and publicinterest.

Conclusion

To effectively regulate gambling activity in California, legislative reform must adapt tocurrent growth trends in gaming activity. Given the increased growth in cardroom andIndian Tribal casino operations, and the emergence of a new electronic marketplace,legislative reform may take an active role to enlarge its regulatory and revenuegenerating capacity. This would seem to coincide with public opinion trends as well.While cardroom growth has been placed in temporary stasis for the next three years,electronic and tribal gaming remain unregulated in the wake of legal uncertainty.

Multi-State Gambling Survey

The following survey compares the legislative measures currently adopted to regulatestate gaming activities. It also highlights distinguishing characteristics of the surveyedstates.

Legalized Gambling Throughout the United States: 59

States Bingo CardRooms Casinos Indian

Gaming Lottery Pari-MutuelBetting

AL X X X

AK X

AZ X X X X

AR X X

CA X X X X X

CO X X X X X

CT X X X X

DE X X X

FL X X X X

GA X X

HI

ID X X X X

IL X X X X X

IN X X X X

IA X X X X X

KS X X X X

KY X X X

LA X X X X X

ME X X X

MD X X X X

MA X X X

MI X X X X X X

MN X X X X X X

MS X X X

MO X X X X

MT X X X X X X

NE X X X X

NV X X X X X

NH X X

NJ X X X X X

NM X X

NY X X X X

NC X X

ND X X X X X

OH X X X

OK X X X X

OR X X X X X X

PA X X X

RI X X X

SC X

SD X X X X X X

TN X

TX X X X

UT

VT X X X

VA X X X

WA X X X X X X

DC X X

WV X X X

WI X X X X X

WY X X X

State-By-State Summary of Gambling Laws 60

Alabama Gambling Provisions

GamblingActivity Licensure/Regulation Conditions

Bingo

Alabama provides detailedlicensing provisions whichvary from county to county.For example, applicants inJefferson county must havebeen in existence for atleast 24 monthsimmediately prior to theissuance of the license,while Madison county

Prize limitations vary from county to county:Jefferson county - $1,200 per session, or$2,400 per week; Madison county - $1K persession, or $2K per week. Games must beconducted by nonprofit religious, charitable,educational or veterans' organizations. Mustbe 19 years old to play.

applicants must have beenin existence continuouslyfor 23 months.

StateLottery Prohibited.

No defense to prosecution for crimes relatedto lottery-type activities if owner participates inlottery drawn or conducted legally outside thestate of Alabama. Code of Ala. 13A-12-29(1995).

CardClubs

All gambling with dice orcards in a "public place" isprohibited.

*However, gambling in aprivate residence is not.See City of Birmingham v.Richard, 44 Ala. App. 127.

SlotMachines

Prohibited. Machine musteject "something of value"in order to be consideredillegal. See Holley v. State,542 So. 2d 952 (Ala. Crim.App. 1989).

Not a defense to prosecution if machine is notin working order at the time of seizure. Noantique slot machine provisions found underAla. codes.

PyramidSchemes Prohibited.

"Pyramid sales structure" includes any plan oroperation for the sale or distribution of goods,services, or other property wherein a personfor consideration acquired the opportunity toreceive a pecuniary benefit, which is basedprimarily upon the inducement of additionalpersons by that person, and others,regardless or number, to participate in thesame plan or operation and is not primarilycontingent on the volume or quantity ofgoods, services, or other property sold ordistributed. Code of Ala. 8-19-5 (1995).

Forfeitureof IllegalGamblingProceeds

Money used as bets orstakes in gambling activityis forfeited to the state andby court order shall betransmitted to the generalfund of the state. Code ofAla. 13A-12-30 (1995).

Any gambling device or gambling recordsseized shall be forfeited by the state, and shallbe destroyed or otherwise disposed of as thecourt directs.

Alaska Gambling Provisions


Bingo

Token-operatedbingo machines areillegal gamblingdevices, since theyare not authorizedunder Alaska Stat.05.15 and areexpressly exceptedfrom authorizedcharitable gamingactivities that can beconducted bypermittees.

According to anopinion by theattorney general,charitableorganizations arepermitted to operaterelatively small scaleactivities.

The department may not allow more than 14 bingosessions per month and 35 bingo games per sessionper permit. All net proceeds must be devoted withinone year to at least one purpose for which thecharitable organization is formed. Games must beconducted by "political, educational, civic, public,charitable, patriotic, or religious uses -- usesbenefiting persons either by bringing them under theinfluence of education or religion or relieving themfrom disease, suffering or constraint, or by assistingthem in establishing themselves in life by providingfor the promotion of the well-being of theorganization or community.

StateLottery Prohibited. Department of Revenue regulates lottery-type

activities for charitable organizations.

CruiseShipGambling

Permitted.

Cruise ship employees are exempt from Alaska Stat.04.16.175 which provides that agents of a gamblingenterprise may not furnish alcoholic beverages in aidof a gambling enterprise.

SlotMachines Prohibited.

Permitted if slot machine may be played foramusement only or which confines winner's rewardto privilege of additional play or other form ofamusement and not entirely based dependent uponthe element of chance.

PyramidSchemes Prohibited. No minimum investment required.


Subject to seizureand forfeiture to thestate.

It is not a defense that the person who possessedillegal gambling devices had not been convicted oracquitted in a criminal proceeding. Forfeiture maynot be made of an item subsequently sold to aninnocent purchaser in good faith and the burden ofproof rests on the purchaser.

Arizona Gambling Provisions


Bingo

Department ofRevenue issues 3classes of licensesranging in fee ($10 -$200).

Prizes limited in amount to $1000 per game and totalprizes shall not exceed $3000 per occasion. Gamesmay be conducted by homeowners association orany bona fide charitable, fraternal, religious, social,veterans' or volunteer fire fighters organization, orany chartered branch of national or state non-profitorganization which has been in existence for twoyears.

StateLottery

Exclusive permit bystatute. Only legally permitted lottery in state.

CardClubs

No cardroom gamingpermitted.

SlotMachines Prohibited. Antique Slot machines over 25 years-old exempted.

PyramidSchemes Prohibited. No minimum investment prescribed.


Proceeds forfeited tothe state generalfund or county.

*Casinos Social and regulatedgambling permitted.

Social gambling not conducted as a business andinvolves players only receiving winnings from otherscompeting on equal terms. Regulated gamblingsubject to state and local taxes, fees, and chargesexcept tax exempt organizations with records opento the public.

Arkansas Gambling Provisions


Bingo

Qualified organization must havebeen in existence for at least 5years prior to license application.All net proceeds above the actualcost of conducting the game shallbe used for charitable, religious orphilanthropic purposes, and noreceipts shall be used tocompensate n any manner anyperson who works for or is in anyway affiliated with the licensedorganization.

Prizes limited to $200 per game, $3Kper bingo session. Games must beconducted by non-profit, federal incometax exempt religious, educational,veteran's, fraternal, service, civic,medical, volunteer rescue service,volunteer fire fighter's organization, orvolunteer police organization licensedto conduct bingo games as permittedby law.

The General assembly determined thatthe present laws prohibiting lotteries


within the state does not includeprohibiting the printing or otherproduction of lottery tickets bycompanies in this State for use instates where lotteries are permitted.Ark. Stat. Ann. 5-66-118 (1995).

CardClubs Prohibited.

Tables or other useful furniture may notbe seized and destroyed simplybecause it may have been found in agambling house or because they maybe used in playing cards or othergames upon which money is bet, butdestruction if permitted of those tablesand devices that are made and keptsolely for the purpose of carrying on abusiness which the law forbids. SeeGarland Novelty Co. v. State, 71 Ark.138 (1902).

SlotMachines

Prohibited.

*The employment of another towatch after a slot machine, in theoperation of which money was lostand won, was considered anoffense. See Jeffries v. State, 61Ark. 308 (1895).

Where slot machines found inwarehouse were gambling devices itwas proper for court to order theirdestruction though not actually set upfor public use. See Bell v. State, 212Ark. 337.



Proceeds forfeited to the state.

California Gambling Regulation


Bingo

$50 licensing fee(maximum) per yearpaid to the stateAttorney General.

Prizes limited in amount to $250 per game.Games may be conducted only by organizationsexempted from the payment of the bank andcorporation tax by IRS Code and by mobilehome park associations and senior citizensorganizations; and provided that the receipts ofthose games are used only for charitablepurposes.

State Exclusive permit by

Lottery statute & constitutionalamendment.

Only legally permitted lottery in state

CardClubs

Cardrooms areapproved by localgovernments and voters.Due to the regulatorynature of Californiagaming legislation, cardgaming is permitted onIndian tribal casinos.

Regulated by police and sheriffs. Misdemeanoroffense for failure of law enforcement officers toprosecute.

SlotMachines

Seemingly prohibited.Challenged as towhether Indian tribalcasinos are barred fromoperating.

Pending U.S. Supreme Court appeal from 9thCircuit Ct of Appeals as to whether state lotteryquick pick keno is legal equivalent to slots andtherefore law is regulatory. Defense toprosecution if slot machine is over 25 years ofage and not operated for gambling purposeswhen in defendant's possession.



Proceeds forfeited tolocal treasury.

Colorado Gambling Regulation


Bingo

$62.50 licensing feepaid to Departmentof State licensingauthority.

Prizes limited to no more than $250 per game.Games may be conducted only by chartered branch,lodge, or chapter of a national or state organizationor any bona fide religious, charitable, labor, fraternal,educational, voluntary firemen's, or veterans'organization or any association, successor, orcombination of association and successor of any ofthe said organizations which operates without profitto its members and which has been in existencecontinuously for a period of five years.

StateLottery


CardClubs

Onlypermitted/licensed inhistorical cities ofCentral, Black, andCripple Creek.

Authorization for taxes (up to 40% of gross adjustedproceeds) to preserve and restore the historicalcities. Commission takes into account profitability ofoperations and comparable gambling in other statesbalanced against public needs.

PyramidSchemes Prohibited. Prohibited if individual investments exceed $50.


Proceeds forfeited tostate general fund.


Defense to prosecution if slot machine not used forgambling purposes (i.e. in privacy of owner's homefor amusement purposes).

Connecticut Gambling Regulation


Bingo

Upon a written petition of 5% of itscitizenry, local municipalities voteto determine whether or not topermit bingo activities. 3 types ofpermits: Class A, Cost $75. Annualone-day-a-week permits, not morethan 40 and not less than 15games on such day. Class B, Cost$75. Not more than 40 and notless than 15 bingo games per dayfor a max. of 10 successive days.Class C, Cost $50. Annual one-day-per-month permits. Not morethan 40 and not less than 15games permitted on such day.

EXCEPTION: Recreational bingofor seniors (65 years or older)allowed to operate bingo facilitieswithout permit by permission fromstate executive director.

Prizes limited to $50 per game, totalprizes shall not exceed $400 peroccasion. Games may be sponsoredby charitable, civic, educational,fraternal, veterans or religiousorganizations, volunteer fire dept. orgrange. Such organizations must be inexistence for at least 2 years prior topermit application. All bingo operatorsmust pay to the state executive directorwithin 10 days after bingo game, 5% ofgross receipts less prizes awarded.State executive director shall pay localmunicipality .25% of total moneywagered less prizes and paymentsmade.

StateLottery Exclusive permit by statute

Only legally permitted lottery in state.Class A misdemeanor to sell out-of-state lottery ticket within the state.


Categorized as an offense againstpublic policy. See State of Connecticutv. Bull Investment Group, Inc. 32 Conn.Supp. 279.

Casinos Generally prohibited.Excepted activities include the trainingof casino personnel for employment byMashantucket Pequot tribe.

Forfeiture

of IllegalGamblingProceeds

Proceeds forfeited to state generalfund.

Delaware Gambling Provisions


Bingo

$300 annual license fee foreach organizationsponsoring instant bingogames. Charitableorganization must havebeen in existencecontinuously for at least 2years prior to licenseapplication.

Prizes limited to $250 per game; $1K totalaggregate per day. Games must beconducted by nonprofit veterans', religious orcharitable organization, volunteer firecompany or fraternal society as defined inarticle II 17A or 17B of the state Constitution.28 Del. C. 1102 (1995). Must be 18 years oldto play.

StateLottery

Exclusive permit by statute.Only legally permittedlottery in state.

Director shall have the power and it shall behis duty to operate and administer the statelottery and to promulgate such rules andregulations governing the establishment andoperation of the lottery. 29 Del. C. 4805(1995).



Defense to prosecution if machine is at least25 years old and is not used for gamblingpurposes while in owner's possession. 11 Del.C. 1405 (1995).

PyramidSchemes

Prohibited as an unlawfulpractice under 6 Del. C.2562 (1995) and violatorsof this section shall be finednot more than $5,000, orimprisoned not more than 3years, or both.

"Pyramid or chain distribution scheme" meansa sales device whereby a person, upon acondition that he part with money, property orany other thing of value, is granted a franchiselicense, distributorship or other right whichsuch franchise, license, distributorship or rightupon such condition. 6 Del. C. 2561 (1995).


Conviction is a conditionprecedent to forfeiture. SeeState v. Rossitto, Del.Supr., 331 A.2d 385 (1974).

Money seized may be confiscated if, at thetime of the seizure, the money formed anintegral part of the gambling operation or if itwas then earmarked or segregated forgambling purposes. See State v. Fossett, Del.Super., 134 A.2d 272 (1957).

Florida Gambling Regulation


Bingo

Prizes limited to no more than 3 jackpots in asession for no more than $250 each, and otherprizes must be under $50. Games may be conductedonly by charitable, nonprofit, or veterans'organizations engaged in charitable, civic,community, benevolent, religious, or scholasticworks or other similar endeavors, whichorganizations have been in existence and active for aperiod of 3 years or more; other organizations whichreturn all of the proceeds to players in the form ofprizes.

StateLottery


CardClubs

Generally prohibitedwith small wagerexception.

"Penny-ante games" are permitted where winningsof any player in a single round, hand, or game do notexceed $10 in value.


Defense to prosecution if slot machine is over 20 yrsold and not operated for gambling purposes while inowner's possession.

PyramidSchemes Prohibited. Prohibited if individual investments exceed $100.


Proceeds forfeited tocounty in whichmoney was seized.

Georgia Gambling Provisions


Bingo

$100 annual license fee; mustmake application to thedirector on forms prescribedby the Georgia Bureau ofInvestigation. Nonprofit, tax-exempt organization musthave been in existence for 24months immediately prior tothe issuance of the license.No license required for"recreational bingo" - anonprofit bingo game wherenoncash prizes are offered.

"It is the intention of the General Assemblythat, except for recreational bingo, onlynonprofit, tax-exempt organizations whichare properly licensed . . . shall be allowed tooperate bingo games." O.C.G.A. 16-12-50(1995).

StateLottery

Exclusive permit by statuteunder Chapter 27 of Title 50and the rules and regulationsof the board of directors ofthe Georgia LotteryCorporation.


A person commits the offense of gamblingwhen s/he: . . . plays and bets for money orother thing of value at any game playedwith cards, dice, or balls. O.C.G.A. 16-12-21 (1995).


Defense to prosecution if machine wasmanufactured prior to 1950 and was notused for gambling purposes while in owner'spossession. Defense is inapplicable if ownerhas been previously convicted of a felony inthis or any other state, or under federal law,and if the antique slot machine is on thepremises of a private or public club or in anestablishment where alcoholic beveragesare sold. If antique slot machine was foundto be used for "gambling purposes," it shallbe destroyed. O.C.G.A. 16-12-24 (1995).



Proceeds considered"contraband" and subject toforfeiture by any peace officerto the general fund of thecounty in which property wasseized.

Idaho Gambling Regulation


Bingo

$100 licensing fee paid to thestate lottery. Non-qualifyingcharitable organizations mayapply for a bingo operatinglicense with the state lottery.Qualified charitableorganizations are exemptedfrom licensing requirement ifprize is limited to $100 pergame and the maximumamount offered during one

Prized limited to $1,200 per game and$5,000 aggregate per bingo session.Number of bingo games is limited to 3sessions per week, each session not toexceed 8 hours per day. Games must beconducted by qualified charitableorganizations -- organizations that areexempt from income tax as well asnonprofit charitable, civic, religious,fraternal, patriotic or veterans

session is $500. All grossrevenues received fromcharitable bingo games mustbe dispersed as follows: notmore than 65% for prizes; notless than 20% for charitablepurposes; and not more than15% for administrativeexpenses.

organizations, nonprofit volunteer firedepartments and volunteer rescuesquads, nonprofit volunteer educationalbooster groups, parent-teacherorganizations or associations. Everycharitable organization whose annualgross revenue exceeds $100,000 fromcharitable bingo games shall provide statelottery with an annual audit.

StateLottery Exclusive permit by statute. Only legally permitted lottery in state.


Casinos Prohibited.

Prohibited casino gambling activitiesinclude, but are not limited to, blackjack,craps, roulette, poker, baccarat, keno andslot machines, or any electronic orelectromechanical imitation or simulationof any form of casino gambling.



Subject to confiscation and considerednuisances. See Mullen & Co. v. Moseley,13 Idaho 457. Slot machines, like othergambling devices, are not "property" butrather, "contraband," subject to seizureand summary destruction. See State v.McNichols, 62 Idaho 616. Permitted only ifused for amusement and confineswinner's reward to privilege of additionalplay or other form of amusement. Defenseto prosecution if slot machine wasmanufactured prior to 1950 and notoperated for gambling purposes. Can beused for display purposes only.


Proceeds forfeited to stategeneral fund.

Illinois Gambling Regulation


$200 annual fee payable to the Prizes limited to $2,250 in any single

Bingo

department of revenue. $50limited license for no more than2 indoor/outdoor festivals in ayear for a maximum of 5 dayson each occasion.

day of bingo. Games must beconducted by bona fide nonprofitreligious, charitable, labor, fraternal,youth athletic, senior citizen,educational or veterans' organization.


River BoatGambling

Permitted. $50,000 initialapplication fee to be paid todefray costs associated withbackground investigations.Applicant must pay more ifbackground check exceeds$50K and conversely, applicantwill be refunded amount notspent. $25K fee for first year,$5K for each additional year.

Riverboat gambling allowed on anynavigable stream within the State or annavigable stream other than LakeMichigan which constitutes a boundaryof Illinois. Legislative intent/publicpolicy is to increase tourism anddevelopment within the state.

*CompulsiveGambling

Department of alcohol and substanceabuse requires signs to be posted atall entrances and exits where legalgambling is conducted.

*Pull Tabsand Jargames

$500 annual licensing fee. Notgranted to persons who havebeen convicted of a felonywithin 10 years of the date ofthis application, a person who isa professional gambler or onewhose previous license hasbeen revoked.

Games must be authorized by localfraternal mutual benefits organizationchartered at least 40 years beforeapplication for lease and any bona fidereligious, charitable, labor, fraternal,youth athletic, senior citizen,educational or veterans' organizationwhich operated in Illinois for a period of5 years continuously immediately priorto application.

SlotMachines

Permitted under limitedcircumstances.

Considered per se contraband unless1) machines have been manufacturedfor transportation in interstate orforeign commerce, 2) the slot machineis 25 years of age and not operated forgambling purposes while in owner'spossession, and 3) machines are foruse on riverboat casinos.

Forfeiture ofIllegalGamblingProceeds

Proceeds subject to forfeiture inthe county where seizureoccurred.

Indiana Gambling Regulation


Bingo

No license if qualified charitableorganization does not charge a feefor entrance and prize awards arelimited to $100 per game, aggregatevalue of prizes per even event doesnot exceed $1,000 and aggregatevalue per calendar year does notexceed $5,000.

Prizes limited to not more than$1,000 per game; total aggregateamount during one session not toexceed $6,000. Games must beconducted by a qualified charitableorganization -- a nonprofit religious,educational, senior citizen, veteranor civic organization and has been incontinuous existence for 5 years.

StateLottery Exclusive permit by statute. Only legally permitted lottery in

state.

SlotMachines Generally prohibited.

Manufacturer may ship gamblingdevices (slot machines) to licensedriverboat operators within the state.

*RiverboatGambling

Initial $25,000 license fee, owner topost a bond. Commissioner issueslicenses based on geographicalconstraints; not more than 11licenses shall be outstanding in anyone given time. Riverboat ownermust give assurances thatinfrastructure of docking city will beimproved and city will benefiteconomically.

Riverboats operating on the Ohioriver must carry at least 500passengers, be at least 150 feet inlength and be regularly inspected bythe commission.

PyramidSchemes Prohibited. Prohibited if individual investments

exceed $100.

SlotMachines Generally prohibited.

Legal to transport slot machines as"gambling devices" to licensedriverboats within the state.


Proceeds forfeited to state.

Iowa Gambling Regulation


$150 annuallicensing fee.Qualifying

Prizes limited to $100 per game. Each sessionmust not exceed 4 hours; limited to 3 bingosessions per week, not more than 14 occasionspermitted per month [senior citizen facilitiesexcluded]. Games must be conducted by

Bingo

organizationsoperating under a 2year license whoexpect to produceannual grossreceipts exceeding$10K must open aseparate "bingo"interest bearing bankaccount and fundsmust not becommingled.

"qualified organizations. All net proceeds mustbe used for "educational, civic, public,charitable, patriotic or religious uses" -- usesbenefiting society for the prevention of cruelty toanimals, uses benefiting an indefinite number ofpersons either by bringing them under theinfluence of education or religion or relievingthem from disease, suffering, or constraint, orby erecting or maintaining public buildings orworks, or otherwise lessening the burden ofgovernment, or uses benefiting any bona fidenationally chartered fraternal or militaryveterans organization.

State Lottery Exclusive permit bystatute. Only legally permitted lottery in state.

CardClubs/Casinos

Generally prohibited,except as operatedon riverboats.

Riverboatgambling

Applicant mustundergo anextensive"background" checkbefore licensegranted. Annuallicense fee shall bebased uponpassenger carryingcapacity (includingthe crew) ofriverboat, assessedat $5 per person.

Riverboat owner agrees to promote localinterests in docking city, including economicbenefit and infrastructure enhancement.

PyramidSchemes Prohibited. No minimum investment permitted.

Slot Machines Generally prohibited.

Permitted on riverboats. "Winnings" are earnedincome and subject to state and federal incometax. Defense to prosecution if slot machine isantique -- 25 years or older and not operatedfor gambling purposes while in owner'spossession.


Proceeds forfeited tothe state; board ofsupervisors mustapprove thedesignation.

Anything of value including money,real/personal property and negotiableinstruments is subject to forfeiture.

Kansas Gambling Provisions


Bingo

$25 annual license fee; if games areconducted on leased property, a copy ofthe lease shall be submitted to thesecretary of revenue. The power toregulate, license and tax the management,operation and conduct of and participationin games of bingo is hereby vestedexclusively in the state. K.S.A. 79-4702(1995). No bingo license shall be issued toany qualified organization if any of itsofficers, directors, or officials employed onthe premises has plead guilty or nolocontendere to a violation of any stategambling laws. K.S.A. 79-4703 (1995).

Total aggregate prizes per daylimited to $1,200, any singleprize of $100 or more shall bepaid by a check drawn on thebingo trust bank account ofthe licensee, and regular callbingo games limited to $50per game. K.S.A. 79-4706(1995). Games must beconducted by a bona fidenonprofit religious, charitable,fraternal, educational orveterans' organization. Mustbe 18 years old to play.

StateLottery

Exclusive permit by statute andconstitutional amendment according to theKansas lottery act. See K.S.A. 74-8705 et.all. (1995).

Only legally permitted lotteryin state, regulated by theKansas lottery commission.

Casinos Prohibited.

SlotMachines

Considered a "gambling device" andprohibited. Slot machine moneys aredirected to be paid to the county treasurer.See State v. V.F.W. Post No. 3722, 215 K.693.

Defense to prosecution if slotmachine is an antiquemanufactured prior to 1950and was not operated forgambling purposes while inowner's possession. K.S.A.21-4306 (1995).




Commissioner may suspendor revoke licensee's licenseand fees become non-refundable.

Kentucky Gambling Provisions


Bingo

$300 annual license fee. Charitableorganizations are exempt fromlicensing provisions when grossreceipts from bingo games do notexceed $300 per week and $5K peryear. Special limited licenses are

Games must be conducted by"charitable gaming" organizationsregulated under the provision ofK.R.S. Chapter 238. Must be 18years old to play, however, acharitable organization exempted

issued when licensed charitableorganization limits bingo games to oneday per week and no more than 5hours long per 24-hour period. Prizeslimited to $5K per bingo session.

under K.R.S. 238.595 may permitpersons under 18 to play ifaccompanied by parent or legalguardian and only if noncashprizes are awarded.

StateLottery

Exclusive permit by statute. Statetreasurer shall establish a KentuckyLottery trust account.


Where defendant was foundparticipating in a poker game andwas observed to take money fromthe "pot" and place it in a cigar boxin front of him, the evidence wassufficient to sustain a convictionfor caring on or managing suchpoker game. See Massie v.Commonwealth, 309 Ky. 129(1949).

SlotMachines

Prohibited. A slot machine is agambling device when the one whoplays it stands to lose money, check ortrade by a hazard or chance. It is notnecessary that both parties wouldstand to lose in order to make orconstitute a gambling device. See Allenv. Commonwealth, 179 Ky. 125 (1917).

Defense to prosecution is slotmachine is an antique and is keptin the home with no intent by theowner to use the machine forgambling purposes.


A scheme by which defendantsenrolled prospective customers ina chain-letter type programthrough the sale of a series ofmotivational tapes, where the chieffunction of the tapes was to lurethe customer into investing inpyramid selling arrangementoffering prospects of quickearnings, was found illegal.


All property which is subject toforfeiture under any section of theKentucky penal code shall be forfeitedto the state and, upon order of the trialcourt, shall be destroyed by the sheriffof the county in which conviction wasobtained. Property subject to forfeituremay also be sold a public action and allsale proceeds shall be deducted fromproceeds of the sale.

A seizure of money is notauthorized by law unless themoney is used as a stake orexhibit to lure persons to wager.See Giley v. Commonwealth, 312Ky. 584 (1950).

Louisiana Gambling Regulation


Bingo

Special license granted to qualifyingorganization for not more than 2 bingosessions per calendar year, aggregateamount of prizes per session not toexceed $25K. Individuals conductingbingo games may not be compensatedexcept for games that benefit the visuallyand/or hearing impaired, paraplegics,

quadriplegics, mentally retarded, orpersons sixty years of age or older.Employees may be paid $30 per day.

Prizes limited to $4,500 perbingo session. Games mustbe conducted by a nonprofitcharitable organization thatis exempt from federal &state taxes. Need proceedsmust be deposited in acharitable "gaming account"and deposits must occur nolater than 2 banking daysafter bingo game (not toexceed 5 calendar dayspreceding bingo contest).

StateLottery Exclusive permit by statute. Only legally permitted lottery

in state.

*CompulsiveGambling

Regulations exposed by the office ofmental health.

Informational signscontaining the toll-freetelephone number must bedisplayed in various placeswhere gambling or gamingactivities are conducted inthe state, horse racingtracks, and charitable bingoparlors. The office shallprovide such signs to theLottery Corporation whichrequires posting at lotteryretail outlets.

RiverboatGambling

Applicant must undergo an extensivebackground check and be of "good moralcharacter" for riverboat gambling license.The initial fee is $50K; any costs forbackground check will be reimbursed.Applicant must pay an additional $5K forracehorse wagering permit. The initialpermit is valid for 5 years. No more than 6licenses may be issued for riverboatsoperating in one parish. Violations oflicensing provisions are subject toforfeiture and deposited in the riverboatgaming enforcement fund.

Cruises must be 3 to 8 hoursin length. Must be 21 yearold to gamble. Operatorswho fail to post toll-free, 24-hour compulsive gamblinghot-line number aroundgambling facilities may befined up to $1,000 per day.25% of all alcoholicbeverages served onriverboats must have beenbottled in LA.

PyramidSchemes Prohibited. No minimum investment

required.

SlotMachines

$5K permit fee for slot machinemanufacturers for riverboat gamblingpurposes.

Permitted on riverboatgambling cruises. Defense toprosecution is slot machineis over 25 years old("antique") and not operatedfor gambling purpose while inowner's possession.


Illegal gambling devises are subject toconfiscation and immediate destruction.

Maine Gambling Provisions


Bingo or"beano"

License to nonprofit organizations cost$7.50 per week, $22.50 per month. Alllicense fees must be paid to the Treasurerof State to be credited to the General fund.Licenses are not transferable. Licenses forhigh-stakes bingo games cost $50K peryear, payable in advance in quarterlyinstallments. Licenses are obtained uponexpress written authority from the Chief ofthe State Police to hold, conduct oroperate bingo games for the entertainmentof the public. The commission and thebureau shall have no authority to regulate,control or otherwise supervise theoperation or conduct of the amusementcommonly known as "beano" or "bingo" asdefined in Title 17, section 311.

Prizes limited to $400 pergame; total aggregate prizesnot to exceed $1,400 persession. Games may beconducted by volunteer firedepartment, agricultural fairassociations, bona fidenonprofit charitable,educational, political, civic,recreational, fraternal,patriotic, religious or veterans'organization that was inexistence at least 2 years priorto its application for a license.Must be 16 years old to play;children under 16 must beaccompanied by parent,guardian or "other responsibleperson."

StateLottery Exclusive permit by statute.

The commission shall meetwith the director, not less thanonce each month, topromulgate and amend rules,subject to the approval of thecommissioner, relating to thelotteries. 8 M.R.S. 374 (1995).


No innkeeper may have orkeep for gambling purposesabout the businessestablishment any dice, cards,bowls, billiards, quoits or other

implements used in gambling.30-A M.R.S. 3833 (1995).


"Slot machine" means anymachine which operates byinserting a coin, token orsimilar object, setting theinternal mechanism of themachine in motion, and by theapplication of the element ofchance may deliver or entitlethe person playing or operatingthe machine to receive cash,premiums, merchandise,tickets or something of value.17 M.R.S. 330 (1995).


Pyramid type investmentschemes are considered to bea "lottery" and are prohibited.Violators shall be guilty of amisdemeanor punished by afine of not more than $5K or byimprisonment for not morethan 11 months, or both. 17M.R.S. 2305 (1995).


Subject to forfeiture to the state.

Maryland Gambling Provisions


Bingo

Licenses may be obtained fromlocal sheriff's department.Organization must have been inexistence continuously for aperiod of 3 years prior to licenseapplication. License fees andprize award limitations vary fromcounty to county -- Marylandmaintains a detailed regulatoryscheme.

Games must be conducted bycharitable organizations including, butnot limited to, volunteer fire or rescuesquads, nationally chartered veteran'sorganization, bona fide religious group,

State Exclusive permit by statute. Only

The director shall supervise andadminister the state lottery inaccordance with lottery agencyregulations and shall confer, at least

Lottery legally permitted lottery in state. once a month, with the Commission onoperation and administration of theState lottery. Md. State Gov't Code Ann.9-111 (1995).

CardClubs

Card games are permitted atCarnivals and bazaars in KentCounty upon application ofspecial licenses for such activities.

All proceeds derived from card gamesshall be used solely for the legitimatecharitable, benevolent, or exemptpurposes of the volunteer fire companyor bona fide fraternal, civic, warveterans', religious or charitableorganization. Md. Ann. Code art. 27 255(1995).

SlotMachines

Prohibited.

*Free-play devices which awardautomatic replays only, and whichcontain nothing more than aknockoff switch, are not slotmachines under the statutorydefinition. See State v. 158Gaming Devices, 304 Md. 404(1985).

Defense to prosecution if owner provesby a preponderance of evidence thatthe machine was manufactured at least25 years before seizure date and wasnot operated for gambling purposeswhile in owner's possession. If ownersucceeds, the machine shall not bealtered or destroyed and shall bereturned to owner.

PyramidSchemes

Prohibited. A person may notestablish, operate, advertise, orpromote a pyramid promotionalscheme. Any person who violatesthis is guilty of a misdemeanorpunishable by a fine of not morethan $10K or imprisonment fornot more than 1 year or both.

"Pyramid promotional scheme" meansany plan by which a participant givesconsideration for the opportunity toreceive compensation to be derivedprimarily from any person's introductionof other persons into participation in theplan from the sale of goods, services,or other intangible property. Md. Ann.Code art. 27 233D (1995).


Money seized from illegalgambling activities shall bedeemed prima facie to becontraband of law and uponconviction, all title rights shall vestin the police of the localgovernment or local sheriff'sdepartment in which property wasseized.

Pending trial or ultimate disposition ofcriminal charges, money seized orcapture shall be deposited in aninterest-bearing bank account by thecounty treasurer. Upon conviction,money forfeited to the State, county orcity in which it was seized. Md. Ann.Code art. 27 264 (1995).

Massachusetts Gambling Provisions


Organization must have been inexistence continuously for 5 year

All net proceeds shall be usedexclusively for educational,

Bingo or"beano"games

prior to application. License fees shallbe determined annually by thecommissioner of administration andproceeds of said fees shall be paidinto the treasury of thecommonwealth and shall be used bythe commission to defray the cost ofadministering this section, subject toappropriation. Mass. Ann. Laws ch.10, 38 (1996).

charitable and religious purposes.Games must be conducted bynonprofit "charitable organizations,"including, but not limited to:fraternal, religious, veterans', firerescue, Boston Firemen's ReliefFund, etc. Must be 18 years old toplay. No alcoholic beverages maybe sold or consumed while gamesare being played.


State treasurer shall appoint adirector of the state lottery who shallsupervise and administer theoperation of the lottery inaccordance with the provisions ofthe state lottery law. Mass. Ann.Laws ch. 10, 26 (1996).


Whoever, in a public conveyance orpublic place, or in a private placeupon which he is trespassing, playsat cards, dice or any other game formoney or other property, or bets onthe sides of hands of those playing,shall forfeit not more than $50 or beimprisoned for not more than 3months. Mass. Ann. Laws ch. 271, 2(1996).


Defense to prosecution if machinewas manufactured at least 30 yearsprior to arrest of owner or seizure ofmachine and the machine was notoperated for gambling purposeswhile in owner's possession.

PyramidSchemes

Prohibited.

Attorney General Opinion, 1965:"Referral selling schemes are illegalin Massachusetts as violations oflottery laws."

No minimum investment required.


All moneys seized shall be paid overto the state treasurer.

Michigan Gambling Regulation

Gambling

Activity Licensure/Regulation Conditions

Bingo

$150 annual licensing fee payable to thestate lottery fund. Additional special permitsissued:

$50 for a 24-hour, consecutive day permit;$100 for a 72-hour (3 day) permit. Anapplicant shall be eligible only for two 24-hour licenses or one 72-hour license peryear. Only one 72-hour license shall beissued at the same location in a 7-dayperiod. An extension for the 72-hour licensemay be granted upon payment of a $50 fee;the extension shall not exceed a 24-hourperiod. A special license may be issued iflicensed bingo operator conducts anothergame outside the scope of the annual feeconditions: $10 for 1 additional day, $50 for2 or more additional days.

Prizes limited to $500 pergame and aggregate value ofprizes limited to $2K persession. Games must beconducted by a "qualifiedorganization" -- a bona fidereligious, educational,service, senior citizens,fraternal, or veterans'organization that operateswithout profit, has been inexistence continuously for 5years prior to permitapplication and is exemptfrom federal and state taxes.

StateLottery Exclusive permit by statute. Only legally permitted lottery

in state.


Punishable as amisdemeanor andowner/operator subject to 2years in jail and a maximum$1,000 fine.

Casinos Prohibited.

Punishable as amisdemeanor andowner/operator subject to 2years in jail and a maximum$1,000 fine.


required.

SlotMachines

Prohibited. Subject to confiscation andshould be turned over to the director of thedepartment of state police for public auction.

Defense to prosecution is slotmachine is over 25 years old("antique") and not operatedfor gambling purposes whilein owner's possession.


Proceeds forfeited to the state. Gamblingdevices subject to immediate confiscation &destruction.

Minnesota Gambling Regulation


*Bingo

$2,500 annual bingo hall license fee.No more than 21 bingo games maybe conducted per week. Licenseholder must keep bingo records forthe past 3 1/2 years. No licenserequired if games are conducted by anursing home or a senior citizenorganization and the prizes for asingle bingo game do not exceed $10,total prizes awarded do not exceed$200 per occasion, and no more thantwo bingo occasions per week.

Prizes limited to $100 per game,aggregate amount per sessionlimited to $2,500. Games arelimited to 10 bingo sessions perweek, at least 15 games must beconducted per session, andsessions are not to exceed 4consecutive hours. Bingo hallsmust be licensed; permit holderssubject to backgroundinvestigation; halls not limited to"charitable organizations."


Only legally permitted lottery instate. Lottery employees subjectto background investigation bythe Director of the division ofgambling enforcement.

Card Clubs Prohibited.Civil cause of action existsagainst winner for amountwagered.

*IndianGamingRegulatoryAct

Pari-mutuel betting permitted.

Governor (attorney general aslegal counsel) may negotiate ingood-faith a tribal-state compactregulating gambling activities onIndian lands.

PyramidSchemes

Prohibited under consumerprotection/fraud statutes.

No minimum investmentrequired.


*CompulsiveGambling

Governor must report to thelegislature by Feb. 1 of each odd-numbered in addressing the problemof compulsive gambling.

A toll free number established bythe commissioner of humanservices must be posted aroundticket sales for pari-mutuelbetting. The commissioner mustalso establish a program for thetreatment of compulsivegamblers. Minn. Stat.

245.98 (1995).


Contraband subject to forfeiture by"seizing authority" (commissioner,sheriff or police officer).

Slotmachines Prohibited.

Mississippi Gambling Regulation


Bingo

$50 annual license fee payableto the Miss. GamingCommission. Special licenseissued for limited emergencyfund-raising purposes. Gameslimited to 2 sessions per calendaryear, total amount of prizesawarded not to exceed $15K peryear.

Games limited to 2 sessions per day, nomore than 8 sessions per week. Ifgames conducted only once a week,sessions may be up to 6 hours per day.Games must be conducted by religious,charitable or other nonprofitorganization. Bingo facilities locatedwithin 1,500 fee of a public school areprohibited from conducting gamesduring school hours.

StateLottery Prohibited. Subject to $5-$25 fine, up to 10 days

imprisonment.

Riverboatgambling

Two-step licensing application:background investigation forprivilege license of applicant($5K) & separate certificate ofsuitability for each cruise vessel($5K). Applicants must post a$250,000 surety bond to theState Tax provision for thefaithful performance of allrequirements imposed by law.

Cruise ship must carry at least 200passengers. Each licensed cruise vesselmust pay a boarding fee of $3.50 perpassenger to the commission. Of thisfee, 60% shall be retained by the state,20% shall be returned to the port county,& 20% shall be returned to themunicipality of the port.

Casinos Permitted on riverboat gamblingvessels.

Gaming commission has authority tocompel casinos to conform theiractivities to municipal ordinance limitinghours of operation.


SlotMachines

May be permitted at circuses,shows, theaters, & otheramusements. Miss. Code Ann.21-19-33 (1995).

Defense to prosecution if slot machine is"antique" -- over 25 years old -- and notoperated for gambling purposes while inowner's possession. Miss. Code Ann.27-27-12 (1995).



Missouri Gambling Regulation


Bingo

$50 annual licensing fee to thedirector of the gaming commission.Special $10 license fee payable ifannual revenues less than $5K andless than $100 per day. Speciallicense granted for festivals &special occasions.

Prizes limited to $500 per game,total amount per session not toexceed $3,600. Must be 16 yearsold to play. Games must beconducted by a bona fide religious,charitable, fraternal, veteran orservice organization.

StateLottery Exclusive permit by statute. Only legally permitted lottery in

state.

Card Clubs Prohibited.Commissioner must reportgambling activity to stateprosecutors.

*CompulsiveGambling

Funding recently allocated for thepurpose of fund treatment forcompulsive gamblers. 1995 MOHouse Bill 10.



Defense to prosecution if slotmachine is "antique" -- over 30years old and not operated forgambling purposes while in owner'spossession.


Gambling devices and proceedssubject to forfeiture by any policeofficer and forfeited to the state.

Proceeds shall be deposited intothe school fund of the county.

*Riverboatgambling

Gambling permitted only onMississippi & Missouri rivers.

Applicant must demonstrate by"clear and convincing evidence"financial responsibility. Vesselsmust resemble, as nearly aspracticable, the home dock city orcounty's riverboat history.

Montana Gambling Regulation


Prizes limited to $100 per game. Gamesmust be conducted by nonprofit

Bingo $250 annual licensing fee. charitable organizations. *Video bingomachines permitted; prizes limited to$800 per game.


Card Clubs Permitted on Indian lands.

CasinosLegislative purpose of theMontana card games act is toban casino-type gambling.

$25 casino night fundraising permitsavailable for charitable organizations.


SlotMachines

$50 license required forantique slot machinedistributor to sell more than 3machines per year.


Proceeds forfeited to a speciallaw enforcement assistanceaccount.

*CompulsiveGambling

Public policy to provideassistance to compulsivegamblers and their families.Mont. Code Anno., 23-5-110(1995).

*IndianGamblingRegulations

Governor must receiveconsent of the tribal council orother governing body of theConfederated Salish &Kootenai Indian tribes or anyother community, band, orgroup of Indians in this state,expressing its desire that itspeople & lands be subject tothe criminal or civiljurisdiction, or both.

The term "the people", as used in Art. III,sec. 9, Mont. Const., is synonymous withthe voters of the entire State of Montana& not the voters of a local governmentunit. Therefore, the Legislature or "thepeople" of the entire state are the onlytwo groups empowered to legalize formsof gambling in this state. See Anaconda-Deer Lodge County v. Lorello, 181 M195, 592 P2d 1381 (1979).

Nebraska Gambling Provisions


$50 annual licensefee payable to the

Aggregate amount of prizes per day limited to $4K.Games must be conducted by a nonprofit charitable,benevolent, humane, religious, philanthropic, youthsports, educational, civic, or fraternal activity

Bingo State Treasurer forcredit to theCharitable GamingOperations Group.

organizations conducted for the benefit of itsmembers. Must be 18 years old to play, except thatany person may play bingo at a limited period bingoor special event bingo if (1) no alcoholic beveragesare served and (b) no prize or prizes to be awardedexceed $25 in value per game. R.R.S. Neb. 9-241.08 (1995).

StateLottery

Exclusive permit bystatute authorizedunder the NebraskaLottery Act.

*Unless a lottery is conducted and operated withinthe specific limits and terms of a statutoryauthorization, it is illegal. See State v. CityBetterment Corp., 197 Neb. 575 (1977).


SlotMachines

Prohibited asgambling deviceswhen designed forthe purpose ofplaying games ofchance for money.See Glasgow v.State, 147 Neb. 279(1946).

PyramidSchemes

Prohibited under theUniform DeceptiveTrade Practices Act.R.R.S. Neb. 87-301(1995).



Any money used asa bet or stake ingambling activity inviolation of anyprovision of thisarticle, shall beforfeited to the state.R.R.S. Neb. 28-1111(1995).

Money shall be restored to the owner unless it wasused in unlawful gambling or lotteries or it was usedor intended to be used to facilitate a violation ofChapter 28, article 4, in which case the money shallbe forfeited and disposed of as required by ArticleVII, section 7, Constitution of Nebraska.

Nevada Gambling Provisions


Charitable bingo games do not require agaming license if: (1) the organization isapproved by the executive director andall prized offered in a single calendaryear do not exceed $500K; or (2) the

Games must be conducted for"charitable or nonprofit activity" --any activity in support of the arts,

Bingo

organization registers with the executivedirector and the total value of all prizesoffered in a single calendar year do notexceed $500K; or (3) the total value ofprizes offered does not exceed $2,500per calendar quarter. NRS 463.4094(1995).

*Free bingo operated by a gamblingestablishment must be licensed as agambling game, but is not a lottery.Attny Gen. Op. 110 (10-23-1951).

amateur athletics, peace officersor health or social services, orconducted for any benevolent,civic, educational, eleemosynary,fraternal, humanitarian, patriotic,political or religious purpose,including the operation of aqualified organization. NRS463.4092 (1995).

StateLottery

Exclusive permit by statute. Charitablelotteries also exist. According to NRS462.015 (1995), the legislature herebyfinds and declares to be the public policyof the state that ... (1) the operation ofcharitable lotteries by bona fidecharitable and nonprofit organizations isbeneficial to the general welfare of theresidents of this state.

Under the statutory definition of alottery, 3 basic elements mustcoexist to create a lottery: (1) aprize consisting of some form ofproperty; (2) distributed bychance; (3) among individualswho have paid or promised topay some form of consideration.Attny Gen. Op. 83-6 (6-29-1983).

Casinos

According to NRS 463.0129, thelegislature finds and declares to be thepublic policy of the state that ... (a) thegaming industry is important to theeconomy of the state and generalwelfare of the inhabitants; (b) continuedgrowth and success depends upon thepublic trust that licensed gaming isconducted honestly and competitively,the rights of creditors is protected andgaming is free from criminal and corruptelements.

Must be 21 yrs old to play oreven loiter around premises.NRS 463.350 (1995). Regulatedby the Nevada GamingCommission.

SlotMachines

Permitted and special "slot machine tax"is levied. NRS 465.080 prohibitscheating with respect to slot machines.

*Pinball machines from which moneycan be won are slot machines and mustbe licensed, and persons under 21 areprohibited from playing them or loiteringabout the premises where they arelocated. Attny Gen. Op. 230 (6-27-1961).

The commission may, byregulation, authorize a person toown or lease slot machines forthe limited purpose of display oruse in the person's privateresidence without procuring astate gaming license. NRS463.160 (1995).

PyramidSchemes

Prohibited under Title 52, Chapter 598,Deceptive Trade Practices. Nev. Rev.Stat. Ann. 598.0903 to 598.0999.

Proceeds subject to forfeiture to the


state and detailed statutory schemeapplies; ultimately, court of law decideswhich "special fund" account to applymoneys seized. NRS 179.118 (1995).

New Hampshire Gambling Provisions


Bingo

No more than 1 license shall beissued per month, and the licenseshall permit no more than 10game dates of bingo per month.Directors or officers of charitableorganization must submit licenseapplication to the commission.Qualified charitable organizationmust submit a financial report tocommissioner within 15 days ofexpiration of license. RSA 287-E:9 (1995).

Qualified organizations must maintain aseparate checking account for thedeposit and disbursement of all incomerelating to bingo; all expenses are to bepaid by check and all prizes above $500are to be paid by check. RSA 287-E:9(1995). Games must be conducted by a"charitable organization" -- meaning,any nonprofit organization, associationor corporation including any police,firemen's, veterans', civil, fraternal orchurch organization holding or eligible toreceive an IRS nonprofit organizationnumber.


Regulated by the state lottery orsweepstakes commission. Must be 18years old to play. RSA 287-F:8 (1995).

*Cruiseships

Gambling permitted on cruiseships (any vessel capable ofproviding overnightaccommodations for 500 or morepeople) whose primary purposeis touring. Any such cruise shipshall be allowed to temporarilyenter New Hampshire coastalwaters and ports for up to 48hours, provided that all gamblingmachines on board are not in useor capable of being used while inNew Hampshire coastal watersand ports. RSA 647:2 (1995).

SlotMachines

Prohibited (except as permittedon cruise ships).

Defense to prosecution if slot machine isat least 25 years old, in the possessionof a collector and is not maintained oroperated for gambling purposes while inowner's possession. RSA 647:2 (1995).

Whenever attorney general has reason

PyramidSchemes

Prohibited and no minimuminvestment required.

to believe that chain distribution schemeis being conducted, s/he may bring anaction in the name of the state againstsuch person and may seek a temporaryrestraining order. If violations haveoccurred, the court shall order to thestate civil penalties of up to $10K foreach such violation. RSA 358-B:4(1995).


Proceeds subject to forfeiture bythe state and the attorneygeneral, upon conviction, shalldetermine its disposition. RSA149-M:11-c (1995).

New Jersey Gambling Regulation


Bingo

Special licensesavailable. SeniorCitizen organizationsexempt fromlicensingrequirements. Mustbe 18 years of age toplay. Licenses maybe revoked for"unlawful conduct"and violations oflicensing provisions.

Prizes limited to $250 per game, aggregatevalue not to exceed $1000 per session.Games must be conducted by nonprofitorganizations including bona fide veterans,religious, charitable, educational & fraternalorganizations, civic and service clubs, seniorcitizen associations, volunteer fire companies,and volunteer first aid or rescue squads. Rulepromulgated by the Legalized Games ofChance Control Commission. N.J. Stat. 5:8-25 (1994). Games may not be conducted onSundays -- the first day of the week -- unlesslicense authorizes games to the contrary.

State Lottery

Exclusive permit bystatute andconstitutionalamendment.

Only legally permitted lottery in state. Entirenet proceeds are to be used for Stateinstitutions and for State aid for education.

Card ClubsGenerally prohibitedexcept at AtlanticCity Casinos.

Card games for amusement purposes onlypermitted at festivals. N.J. Stat. 5:8-113(1994).

*GamblingHouses/Casinos

Permitted in AtlanticCity, Atlantic County.


Permitted in AtlanticCity casinos. Casinolicensee must certify

Slot Machines

it will use designatesmachine in its casinoand the commissionshall regulate andestablish technicalstandards forlicensure of slotmachines.

Lawful to own one slot machine for "socialpurposes" within the home. Defense toprosecution if slot machine is "antique" -- builtbefore 1941 -- and was not operated forgambling purposes while in owner'spossession.

Forfeiture ofIllegal GamblingProceeds

Proceeds may beseized by the stateor any lawenforcement agency.

No property right exists for illegal gamblingdevices. N.J. Stat. 2C:64-1 (1994).

New Mexico Gambling Regulation


Bingo

$100 annual licensefee. Licensees mayconduct up to 260games per year.Bingo games forprofit may not areprohibited at the statefair.

Aggregate amount of prizes offered per sessionlimited to $1,500. Games must be conducted bya 501(c) nonprofit "charitable organization" -- anyorganization, not for pecuniary profit, which isoperated for the relief of poverty, distress orother condition of public concern in New Mexico,including religious, charitable, labor,environmental, fraternal, educational or veterans'organization -- which has been continuously inexistence for 3 years prior to license application.

StateLottery

Exclusive permit bystatute.

Lottery directors are required to conduct acontinuous study of other state lotteries toimprove the efficiency, profitability and

security of the authority and the lottery. N.M.Stat. Ann. @ 6-24-7 (1995).

Card Clubs

Card gamesprohibited whensomething of value isexchanged.

Casinos Prohibited.

PyramidSchemes

Prohibited. Violatorsare subject to civilpenalties which shallbe deposited in thestate treasury in afund designated asthe "PyramidPromotional

Given the potentially deceptive nature ofpyramids, there is a valid state interest in theirregulation, and any infringement on firstamendment rights to free speech and assemblyis both negligible and subordinate. State ex rel.

Schemes ActRestitution Fund"administered by theAttorney General.

Stratton v. Sinks, 106 N.M. 213.


Where the element of chance is missing, slotmachines converted into vending machineswhich sell souvenir tokens are not consideredgambling devices. 1972 Op. Att'y Gen. No. 72-39. Defense to prosecution if slot machine is 25years old, in substantially original condition andnot used for gambling purposes while in owner'spossession.


Proceeds subject toforfeiture to thecounty treasurer tobe deposited to thestate public schoolfund.

Illegal gambling devices may be seized by anylaw enforcement agency and subject todestruction upon petition by district attorney tothe presiding county judge.

*CompulsiveGambling

The State Lotteryshall set aside up to2% of gross annualrevenues dedicatedto addressingproblems ofcompulsive gamblers.Any balance over$50K per year shallbe transferred to thelottery tuition fund.

New York Gambling Regulation


Bingo

$25 permit required to sell bingoequipment and supplies to authorizedcharitable organizations. Licenses mustbe conspicuously displayed at all timesduring the conduct of bingo games. Nomore than $5 may be charged bylicensee for admission to bingo games.Charge for each game limited to $.25.No alcoholic beverages may be servedduring bingo games.

Prizes limited to $1,000 pergame, total aggregate amountnot to exceed $3,000. Gamesmust be conducted by an"Authorized organization" --any bona fide religious,charitable, educational,fraternal, civic, veterans,volunteer firefighters, orvolunteer ambulance workersorganization.

State Exclusive permit by statute and Only legally permitted lottery instate. Net proceeds to benefit

Lottery constitutional amendment. New York public schools.

Card Clubs Prohibited.

Casinos Prohibited.


required.


Permitted if slot machine offersfree play (something otherthan value) for prize.


Proceeds forfeited to the state.

*CompulsiveGambling

Compulsive gambling means animpulse control disorder, as defined bythe most recent edition of the diagnosticand statistical manual of mentaldisorders (DSM), published by theAmerican Psychiatric Association.

The office of mental health isresponsible for developingprograms to help compulsivegamblers. NY CLS Men Hyg@ 7.07 (1995). 8 1/2" x 11"signs must be postedconspicuously in all legalgambling facilities.

North Carolina Gambling Provisions


Bingo

All funds received inconjunction with abingo game shall beplaced in a separatebank account. All netproceeds shall beused for theunderlining purposeof charitableorganization. N.C.Gen. Stat. 14-309.11(1995).

Games limited to 2 sessions per week, eachsession not to exceed 5 hours. No two bingosessions shall be held within 48 hours of each otherand no two bingo games shall be held in the samebuilding per week. Games must be conducted bybona fide, nonprofit, tax-exempt charitable, civic,religious, fraternal, patriotic or veterans'organization, volunteer fire department, volunteerrescue squad or bona fide homeowners' or propertyowners' association. N.C. Gen. Stat. 14-309.6(1995).

StateLottery


CardClubs

Prohibited andconsidered an illegal"game of chance."See State v. Taylor,111 N.C. 680 (1892).


Defense to prosecution if slot machine wasmanufactured 25 years ago and was not used forgambling purposes while in owner's possession. Ifcourt determines that the defense has been proved,the slot machine shall be returned immediately tothe defendant. N.C. Gen. Stat. 14-309.1 (1995).

PyramidSchemes

Prohibited and nominimum investmentrequired. Violatorsguilty of a class 2misdemeanor. N.C.Gen. Stat. 14-291.2(1995).

"Pyramid distribution plan" means any programutilizing a pyramid or chain process by which aparticipant gives a valuable consideration for theopportunity to receive compensation for things ofvalue in return for inducing other persons to becomeparticipants in the program. N.C. Gen. Stat. 14-291.2 (1995).


All property derivedthrough racketeeringactivity is subject toforfeiture to the Statethrough civil action.N.C. Gen. Stat. 75D-5(1995).

North Dakota Gambling Regulation


Bingo

$150 annual fee payable to stateattorney general. $50 license feepayable to the attorney generalfor permit to operate bingogames at fairs/festivals. Mustapply at least 30 days inadvance. Licensee guilty of amisdemeanor if she knowinglyprovides false information.License suspended for 2 yearsfor misconduct.

Prizes limited to $1000 per game,aggregate amount not to exceed $6,000per session. Games must be conductedby nonprofit organization recognized as apublic spirited organization by thegoverning body of a city or county. If theorganization is a North Dakota Collegefraternity or sorority, applicant must alsoinclude a signed certificate fromuniversity administrators recognizingcharter.


*Class A misdemeanor to possess anout-of-state lottery ticket, even whenticket sales in other jurisdictions arelegal.

CardClubs Prohibited. Card activities permitted in private

homes.

Casinos Prohibited.

PyramidSchemes Prohibited. No defense to prosecution if plan limits

number of participating members.


Defense to prosecution if machine is 25years old and not used for gamblingpurposes while in owner's possession.


Constitutional to destroy seizedgambling devices.

Ohio Gambling Regulation


Bingo

$100 license fee peryear payable to thestate AttorneyGeneral; temporarypermit awardedunless an objectionis raised 30/days.

Prizes limited in amount to no more than $3,500 persession. Games may only be conducted bycharitable organizations meaning any tax exemptreligious, educational, veteran's, fraternal, service,nonprofit medical, volunteer rescue service,volunteer firemen's, senior citizen's, youth athletic, oryouth athletic park organization -- an organization,except a volunteer rescue service or volunteerfiremen's organization, shall have been in continuousexistence as such in this state for a period of twoyears.

StateLottery


CardClubs Limited gaming.

Festivals conducted by charitable organizations for aperiod of four consecutive days or less and not morethan twice a year or once a year for a period of notmore than five consecutive days (includes moreextensive, Las Vegas-style gaming activities).

SlotMachines

Permitted at festivalsand licenses grantedfor periods not toexceed 4consecutivedays/twice a year or5 consecutivedays/once a year.

Gaming device as long as device makes prizeavailable.

PyramidSchemes Prohibited. Prohibited if individual investments exceed $25

annually.

Oklahoma Gambling Provisions


Bingo

Every district court clerk shall beauthorized to issue a license toconduct bingo games to any"qualified organization."Applicants must have been inexistence and operating as anonprofit organization for notless than 2 years prior toapplying for a license. Gamesare regulated by the OklahomaCharity Games Act.

Games must be conducted by areligious, charitable, labor, fraternal,educational organization, or veterans' orfiremen's organization which operateswithout a license and is tax-exempt. 21Okl. St. 995.1 (1995).


Every person who sets up a lottery ispunishable by a fine equal to double theamount of the whole value for whichsuch lottery was made, and if suchamount cannot be ascertained, then, byimprisonment in the state prison notexceeding 2 years or by imprisonment ina county jail not exceeding 1 year, or bya fine of $2,500 or both such fine andimprisonment. 21 Okl. St. 1053 (1995).


Except as provided in the Oklahomacharity games act, every person whoopens ... any gambling game played with... cards... shall be guilty of a felony andupon conviction, shall be fined not lessthan $500 no more than $2K, and byimprisonment in the State Penitentiaryfor a term of 1 to 10 years. 21 Okl. St.941 (1995).

SlotMachines

Prohibited. Upon conviction,owner subject to $25-$100 fineand/or up to 30 days in jail. 21Okl. St. 944 (1995).

Defense to prosecution if machine is 25years or older and is not used forgambling purposes or if machine is usedfor the purpose of teaching slot machinerepair and is not used for gamblingpurposes. 21 Okl. St. 964 (1995).

PyramidSchemes

Prohibited. Upon conviction,violators shall be punishable by afine of not more than $10K or byimprisonment in the StatePenitentiary for not more than 10years, or both. 21 Okl. St. 1073(1995).

"Pyramid promotional scheme" meansany plan or operation by which aparticipant gives consideration for theopportunity to receive compensationwhich is derived primarily from theperson's introduction of other personsinto the plan. 21 Okl. St. 1072 (1995).


Proceeds forfeited to the sheriffto be deposited in the countycourt fund while awaiting districtcourt order. 21 Okl. St. 943(1995).

Oregon Gambling Regulation


Bingo

Fee payable to theDepartment ofJustice. Operatingexpenses may notexceed 15% ofhandle amount. Totalhandle amount peryear may not exceed$1Mil.

Prizes limited to $750 per game. Games must beconducted by charitable, fraternal or religiousorganizations.

StateLottery

Exclusive permit bystatute andconstitutionalamendment.

Only legally permitted lottery in state. Netproceeds used to benefit funding for elementaryand secondary education. The use of a portion ofthe net proceeds from the operation of the statelottery funds under section 4 (3), Article XV of theOregon Constitution and ORS 461.510 createsjobs and furthers economic development. ORS327.310 (1994).


Casinos Prohibited.



Defense to prosecution if slot machine was builtbefore 1963 and was not operated for gamblingpurposes while in owner's possession.


Proceeds shall bedeposited with thestate treasurer to thecredit of the commonschool fund.

*IndianGamingRegulatoryAct

1988 Act permitsgambling activities ontribal land.

Pennsylvania Gambling Provisions


Bingo

$100 annual license fee; annual feefor senior citizen's groups is $50.$15 special license fee forassociations that conduct bingo foronly one period each year and fornot more than 3 consecutive days.10 P.S. 305 (1994). Except forresidents of senior citizen housingprojects, organizations must havebeen in existence continuously for 2years prior to application.

Prizes limited to $250 per game;jackpot games limited to $2K pergame; aggregate value of prizes percalendar day limited to $4K. Must be18 years old to play. Games must beconducted by qualified nonprofitcharitable organizations.

StateLottery

Exclusive permit by statute. Onlylegally permitted lottery in state.

*For any winner of more than $2,500,the Department of Revenue shallrequest the Department of PublicWelfare to make all reasonable effortsto determine if the winner is adelinquent support obligor prior tomaking any lottery winnings payment.If winner is so found, amount ofarrearages shall be paid to obligeebefore making lottery winningdisbursements. 23 Pa.C.S. 4308(1995).



Defense to prosecution if defenseshows by a preponderance of theevidence that machine wasmanufactured prior to 1941 and that itwas not used or attempted to be usedfor unlawful purposes. If defense issuccessful, antique slot machine shallbe returned to owner. 18 Pa.C.S.5513 (1995).

PyramidSchemes

Prohibited under Unfair CompetitionActs or Practices. 73 P.S. 201-2(1995).



Proceeds and all gambling devicesshall be seized and forfeited to theCommonwealth. 18 Pa.C.S. 5513(1995).

Puerto Rico Gambling Regulation


Bingo

Lottery Exclusive permit bystatute. Only legally permitted lottery in territory.


Owner must engage in gambling activity, not justpossess card paraphernalia, to be convicted of illegalgambling.

Casinos

Permitted. Touristcompany must applyfor a licenseauthorized by thesecretary of theTreasury.

Las Vegas-style gambling permitted at resort hotels.


SlotMachines

Permitted in thegaming rooms oftourist hotels.

As a means of control, the Tourist Company isauthorized to regulate and inspect slot machines.Company shall submit an annual report andevaluation to the Legislature during the first thirty(30) days of each regular session, with regard to theimpact of the slot machine legislation on the hotelsector and the Tourist industry. 15 L.P.R.A. @ 71(1991). Proceeds deposited in a separate account.


Subject to forfeitureto the state.

Rhode Island Gambling Provisions


Bingo or"Beano"

$5 annual license fee given toqualified charitable organization.

*Senior citizens housing projectorganization may conduct ownbingo games; total daily prizesnot to exceed $400 and shall beopen only to senior citizens whoare residents of the housingproject where the game is held.Bingo games shall be limited to 3days per calendar week. R.I.Gen. Laws 11-19-32.1 (1995).

*Prizes limited to $4,250 in any onenight if conducted in a smokingfacility and $6,050 if conducted in anonsmoking facility (emphasisadded). R.I. Gen. Laws 11-19-32(1995).

The lotteries shall be under the

StateLottery

Exclusive permit by statute. Onlylegally permitted lottery in state.

immediate supervision and direction of adirector who is appointed by thegovernor with the majority approval ofthe commission and is to serve at thepleasure of the commission. R.I. Gen.Laws 42-61-3 (1995).


SlotMachines

Prohibited. Punishable by a fineof not more than $100 and/orimprisonment for not more than30 days. R.I. Gen. Laws 11-18-21(1995).

PyramidSchemes

Prohibited. R.I. Const. art. 6, 15(1995).


Gambling apparatus of devicesfound by any officer in executinga search warrant or which shallbe produced and brought intocourt shall be forfeited to thestate, and upon final judgment offorfeiture shall be destroyed byorder of the court. R.I. Gen. Laws11-19-24 (1995).

Proceeds shall be held by the generaltreasurer in a separate account untilsuch time as an allocation is determinedby agreement of the agencies or by thepresiding justice. It shall be the duty andresponsibility of the general treasurer todisburse the allocated funds from theseparate account to the respective lawenforcement agencies. R.I. Gen. Laws11-19-24 (1995).

South Carolina Gambling Provisions


Bingo

License fee payable to theSouth Carolina Department ofRevenue and Taxation.Licenses divided by revenuegenerated per year in bingogames entitled: Class AA, B, C,D, and E. S.C. Code Ann. 12-21-3440 (1993).

Qualified organization must keep aseparate "bingo checking" and interest-bearing "savings account." Checks mustbe imprinted with the words "Bingoaccount" and must contain theorganization's bingo license number onthe face of the check. S.C. Code Ann. 12-21-3490 (1993).


CardClubs

Prohibited. S.C. Code Ann. 16-19-40 (1993).

Slot

Prohibited. A slot machinewhich awards free gamescontingent upon the score

Machines recorded is an illegal gamblingdevice. See Alexander v.Martin, (1939) 192 SC 176.

PyramidSchemes

Prohibited and considered to bean unfair trade practicepursuant to 39-5-20 (a) of theSouth Carolina Unfair TradePractices Act of 1971.


Proceeds subject to forfeiture tothe state.

South Dakota Gambling Provisions


Bingo

Municipalities -require 30 dayswritten notice of timeand place withoutobjection.

Prizes limited in amount to no more than $2,000 persession. Games may be conducted only by bona fidecongressionally chartered veterans organization; areligious, charitable, educational or fraternalorganization; a local civic or service club; a politicalparty; a volunteer fire department; or a politicalaction committee or political committee on behalf ofany candidate for a political office.

StateLottery


CardClubs

Limited card gameswithin the city limitsof Deadwood City.

Special fund maintained pursuant to restoration andpreservation of historical Deadwood City.

SlotMachines

Limited to DeadwoodCity.

Defense to prosecution if slot machine is over 25years of age and not operated for gambling purposeswhen in defendant's possession.


Proceeds forfeited topublic schools.

Tennessee Gambling Provisions


Qualified organization must obtain licensein order to conduct charity bingo games. Games must be conducted by

Bingo See Tenn. Code Ann. 62-33-100 to 120(1995).

qualified nonprofit, charitablebingo operations.


A person who possesses orowns an out-of-state lotteryticket is exempt fromprosecution if the person didnot possess or own the ticketfor the purpose of resale. SeeTenn. Code Ann. 39-17-505,506 (1995).


SlotMachines

Prohibited.

A mint vending machine, which, in additionto delivering a package of mints for thecustomer's coin, emitted checks or chips,varying from two to twenty, of use only inplaying a game which was a part of thevending machine, was a gaming device.See Painter v. State, 163 Tenn. 627,(1932).

PyramidSchemes

Prohibited as an unfair or deceptive act,Tenn. Code Ann. 47-18-104 (1995). andconsidered illegal "gambling" under Tenn.Code Ann. 39-17-501,502, 506 (1995).


Proceeds subject to the general funds ofthe state and the general funds of thepolitical subdivision or other public agency,in any, whose officers made the seizure,except as otherwise provided by law. Tenn.Code Ann. 29-3-101 (1995).

Texas Gambling Provisions


Bingo

Organization must be licensedunder the Bingo Enabling Act(Article 179d, Vernon's Texas CivilStatutes) and must have beenorganized within Texas for at least3 years. See Tex. Rev. Civ. Stat.art. 179d (1996).

Games must be conducted bynonprofit charitable organizations.Licensed organization may not offeran alcoholic beverage as a bingo prizeor as a door prize at a bingo occasion.

*The toll-free "800" number operated


by the Problem Gamblers' Helpline ofthe Texas Council on Problem andCompulsive Gambling must beprominently displayed on each card-mining device and ticket or pull-tabdispenser. See Tex. Rev. Civ. Stat.art. 179d (1996).

CardClubs

Prohibited as unlawful gambling.See Tex. Penal Code 47.02 (1996).

SlotMachines Prohibited. No defense to prosecution found.

PyramidSchemes

Prohibited as a deceptive tradepractice. See Tex. bus. & Com.Code 17.46 & 17.461 (1996).



Upon court order, proceeds subjectto forfeiture to the state and courtshall transmit them to the grandjury of the county in which moneyswere seized for use in investigatingviolations of the Penal code. SeeTex. Code. Crim. Proc. art. 18.18(1996).

Vermont Gambling Provisions


Bingo

Permitted.

*Charitable organizationsmay conduct "casinoevents" limited to not morethan one casino even percalendar quarter or threecasino events per calendaryear, as long as there areat least 15 days betweeneach event.

Games must be conducted by charitableorganizations for religious, educational, civicor fraternal purposes. All net proceeds shall beused exclusively for charitable, religious,educational and civic undertakings afterdeducting reasonable expenses at fair marketvalues.

StateLottery

Exclusive permit by statute.License fees are fixed bythe commission and maynot exceed $15.00 peryear.

The state lottery is conducted under theimmediate supervision of a lottery director, anexecutive position. The state treasurer mustcreate a separate lottery fund consisting of allproceeds from the sale of lottery tickets andfrom license fees and must make allinvestments of lottery fund moneys. No lessthan 50% of gross receipts shall be paid out

as prizes.


A person who plays at cards . . . for money orother valuable in a common gaming orgambling house that is maintained for lucreand gain, shall be fined not more than $200.00or imprisoned not more than sixty days, orboth. 13 V.S.A. 2133 (1995).


Defense to prosecution if machine wasmanufactured prior to 1954 and was notoperated for gambling purposes while inowner's possession.



Proceeds subject toforfeiture to the state.

A person charged with illegal gamblingactivities may, in lieu of appearance, postcollateral ($50), waive appearance before aMagistrate and consent to the forfeiture ofcollateral.

Virginia Gambling Provisions


Bingo

Except for recently establishedvolunteer fire and rescuecompanies or departments, thecharitable organization musthave been in existence and meton regular basis for a period ofat least 5 years immediatelyprior to applying for a permit. Allapplications for a permit shallbe acted upon within 60 days offiling. All permits shall besubject to reasonable regulationby the local governing body orits designated local office toensure the public safety andwelfare in the operation ofbingo games and raffles.

Prizes limited to: $25 per bingo doorprize; $100 per regular bingo or specialbingo game prize; $500 per instant bingoprize per single card; $1,000 per bingojackpot. Alcoholic beverages may not beserved or consumed in the same roomwhere bingo games are conducted.Games must be conducted by lawfulreligious, charitable, community oreducational organizations. If grossreceipts exceed $50K per year, charitableorganization must file an additionalaccounting of its receipts no later than 60days following the last day of the quarter.If gross receipts exceed $250K per year,organization must attach an opinion by alicensed independent C.P.A.



Pull-tab card which required a player tomatch symbols in perforated windows inorder to be a "winner" were "gamblingdevices." See Virginia ABC Bd. v.. VFW

Ocean View Post-3160 10 Va. App. 165.


A slot machine which will automaticallyreturn an award (i.e. a package of mint)equal to the retail value played andsometimes in addition thereto, is a"gambling device." Va. Code Ann. 18.2-311 (1995). See Farris v. Jones, 13 Va. L.Reg. (n.s.) 235 (1927).

PyramidSchemes

Prohibited.

*Neither the dictionary definitionnor the statutory definition of a"pyramid sales scheme"indicates that there must be amulti-layered vertical chain ofcompensation flowing tointermediate participants fromthe efforts of their recruits. SeeLove v. Durastill of Richmond,Inc., 242 Va. 186 (1991).

Any person who contrives, prepares, setsup, operates, advertises or promotes anypyramid promotional scheme shall beguilty of a Class 1 misdemeanor."Pyramid promotional scheme" meansany program utilizing a pyramid or chainprocess by which a participant gives avaluable consideration for the opportunityto receive compensation or things ofvalue in return for inducing other personsto become participants in the scheme. Va.Code Ann. 18.2-239 (1995).


Lawfully seized proceeds aresubject to forfeiture to theCommonwealth.

By court order upon conviction, the courtshall make such disposition as it deemsproper, including awards of property toany State agency or charitableorganization for lawful purposes.

Washington Gambling Regulation


Bingo

Yearly license requiredand issued by gamblingcommission, but no feeimposed. Renewallicenses may not bedenied to a qualifiedapplicant for thepurposes of limitingamount of outstandinglicenses or discriminationbased upon race, sex,creed, color, or nationalorigin.

Games must be conducted by a bona fidecharitable or nonprofit organizations existingfor charitable, benevolent, eleemosynary,educational, civic, patriotic, political, social,fraternal, athletic or agricultural purposes.Games may be played at such organizationsnot more than 3 times per week. Grossrevenues cannot exceed $5,000 per year andall revenues must be devoted solely to thepurposes for which the organization qualifiesas a bona fide charitable or nonprofitorganization.

State

Exclusive permit bystatute. In 1995, lotteriesmust be approved by60% of each member of

Only legally permitted lottery in state allowed.License must be posted in plane view at ticket

Lottery the house of legislatureor by 60% affirmativevote of electors.

sales offices.

Card Clubs "Professional gambling"prohibited.

"Social card games" permitted when hostedby bona fide charitable or nonprofitorganizations.

*CompulsiveGamblers

State recognizes that compulsive gamblersare a problem and therefore authorizesresources for support services for compulsivegamblers, including a toll-free hot line numberwhich shall be placed in the establishments ofgambling licensees, horse racing licensees,and lottery retailers.



An inoperable slot machine is subject toconfiscation and destruction as a gamblingdevice, a public nuisance. See In reDestruction of One Gambling Device, 16Wash. App. 859. Defense to prosecution ifslot machine is an "antique" -- 25 years of age-- and not operated for gambling purposeswhen in defendant's possession.


Proceeds forfeited to thestate.

Washington, D.C. Gambling Provisions


BingoRegulated by the District of Columbia CharitableGames Control Board. Board may impose a fine upto $1K for violations of its rules and regulations.

Games must beconducted by non-for-profit charitableorganizations. Mustbe 18 years old toplay.

StateLottery

Exclusive permit by statute and regulated by theDistrict of Columbia Lottery and Charitable GamesControl Board. The Board consists of 5 memberswho are appointed by the Mayor with the consent ofthe Council of the District of Columbia. Boardmembers must be registered D.C. voters for 5 yrsprior to appointment and not be less than 21 years

old. D.C. Code 2-2501 (1995).

CardClubs Prohibited. See D.C. Code 22-1506 (1995).

SlotMachines Prohibited. See D.C. Code 22-1504 (1995).

Defense toprosecution if slotmachine wasmanufactured before1952, intended forexhibition or privateuse by the owner,and not used forgambling purposes.

PyramidSchemes Prohibited. Minimum investment

unknown.


Proceeds subject to forfeiture and shall be madeavailable for the use of any agency of thegovernment of the DC, or otherwise disposed of asthe Mayor of DC may, by order or by regulation,provide. See D.C. Code 22-1505 (1995).

West Virginia Gambling Provisions


Bingo

Organization must have been in existencefor at least 2 years prior to application.Applications shall be made to the taxcommissioner. See 1996 W.V. HB 4479.

Prizes may be money ormerchandise other than beer,non intoxicating beer,wine, spirits or alcoholic liquor.Games must be conducted by"charitable or public serviceactivity or endeavor."

StateLottery

Exclusive permit by statute and regulatedby the State Lottery commission consistingof 7 members, one shall be a lawyer, oneshall be a C.P.A., one shall be a computerexpert, one shall have not less than 5years in law enforcement and one shall bequalified as an expert in the field ofmarketing. See W. Va. Code 29-22-4(1995).


General powers conferredupon every municipality andthe governing body thereof toarrest, convict and punish anyperson for gambling ... orkeeping any gaming table to

be played with cards, dice, orotherwise. W. Va. Code 8-12-5(1995).

SlotMachines Prohibited. No defense to prosecution

found.


No minimum investmentrequired. See W. Va. Code 47-15-2,3,4,5,6 (1995).


Proceeds may be seized by order of acourt, or under the warrant of a justice[magistrate], and the money so seizedshall be forfeited to the county and paidinto the treasury of the county in whichsuch seizure was made. W. Va. Code 61-10-1 (1995).

Wisconsin Gambling Regulation


Bingo

$5 licensing fee. Nofee can be chargedfor admission tobingo facility.Exception: state maynot enforce bingolaws on Indianreservations. SeeOneida Tribe ofIndians of Wis. v.State of Wis. FSupp. 712 (1981).

Prizes limited to no more than $250 per gam;aggregate value of prizes at one bingo occasion maynot exceed $1,000, except by the amount resultingfrom the awarding of minimum prizes. Individualgames limited to $1 per ticket. Games must besponsored by community-based residential facilities,senior citizen community centers, adult familyhomes, local religious, charitable, service, fraternalor veterans' organizations and organizations whocontributions are deductible for federal or stateincome tax purposes. May not be operated by aperson who has been convicted of operating agambling place within the past 5 years.

StateLottery



Casinos Prohibited.An Iowa licensed river boat equipped with casino-style gambling games may be engaged in illegalcommercial gambling if it enters Wisconsin waters.


SlotMachines

Prohibited as"Casino" style

Exception: video poker machines allowed when themachine itself does not provide a reward beyond free

gambling. replays.


Proceeds forfeited tostate general funds.

Pari-mutuel,on-trackbetting

Permitted but thestate may not own,operate or lease anystate-owned land tooperator for suchpurposes.

Race track operator must have approved statelicense which is regulated by statute according tonumber of races performed and amount of revenuegenerated. State has discretion to weighcommunities' interest against race track interests.

Wyoming Gambling Provisions


BingoCharitable operationspermitted. See Wyo.Stat. 6-7-101 (1995).

Games must be conducted by charitable ornonprofit organizations.

StateLottery


CardClubs

Prohibited an all card-playing gamblingcontracts are void.See Wyo. Stat. 1-23-106 (1995), Swinneyv. Edwards, 8 Wyo.54, 55 P. 306 (1898).


Defense to prosecution if slot machine is at least 25years old and used only for display or personalamusement in the owner's residence, in public andprivate museums, in possession of a dealer ordistributor of lawful gaming equipment or displayedat state or local historic sites. See Wyo. Stat. 6-7-101 (1995).

PyramidSchemes

Prohibited. See Wyo.Stat. 40-3-102,103(1995).



All gambling devices,gambling records andgambling proceeds aresubject to seizure byany peace officer. SeeWyo. Stat. 6-7-103(1995).

Notes

[1] California Department of Justice, Daniel E. Lungren, Attorney General, Growth inGambling in California, 1 (1994) (citing Gaming & Wagering Business, July 15, 1993 -Aug. 15, 1993) [hereinafter Lungren]. $300 billion figure refers to "Handle" amount; that is,amount of money actually wagered and not net profits. (return to text)

[2] I. Nelson Rose, Gambling and the Law-Update 1993, 15 Hastings Comm/Ent L.J. 93,97 (1992). (return to text)

[3] Lungren, supra note 1, at 2. (return to text)

[4] Rose, supra note 2, at 97. (return to text)

[5] Lungren, supra note 1, at 3. Many states with a river or bay have legalized river boatcasinos. Mississippi river boat casinos are not required to have engines or crews, as theyare not required to leave their (often permanent) moorings. Rose, supra note 2, at 101.(return to text)


[7] Id. at 8. (return to text)

[8] Id. (return to text)

[9] Rose, supra note 2, at 97; Lottery Leads List of L.A. Radio Advertisers, L.A. Bus. J.,June 4, 1990. (return to text)




[13] Id. at 20. The Attorney General's office has repeatedly advocated a comprehensivegaming control statute providing for the following features: (1) creation of a new state-level cardroom gaming commission with the power to grant, renew, and revoke licenses;(2) investigatory and enforcement powers vested in the Department of Justice's GamblingControl Division; (3) authority for the gaming commission to regulate minimum controlstandards for reporting, customer identities, cash value transactions, and auditing; and (4)a mechanisms for joint regulation of between the state and tribal governments of class IIIgaming activities. Id. at 21. (return to text)

[14] Steve Scott, High Stakes Game: Special Interests Surround New Push to RegulateGambling in California, Cal. J., Apr. 1995, at 8. (return to text)

[15] Federal and the developed doctrines of tribal sovereignty do not allow stateregulation of this type unless individual tribes consent. (return to text)

[16] Scott, supra note 14, at 8. This estimate does not take into account recent legislative

activity. Current growth has been temporarily placed in stasis by a three-year, legislativemoratorium on new cardroom licenses. The measure limits growth over the next threeyears to existing license-holders. (return to text)

[17] Max Vanzi, Bill to Create Card Club Panel Appears Doomed, L.A. Times, Sept. 2,1995, at A30. (return to text)


[19] Scott, supra note 14, at 9. Lungren perceives that given the strained situation ofregulatory authority, the possibility is high for crime and organized crime to infiltrate thecardroom industry. (return to text)


[21] Id. at 9. The two greatest sources of influence come in the forms of municipalreliance on gambling-related tax revenue and the campaign contributions to localpoliticians. (return to text)

[22] A.B. 11, Cal. Assembly, 1995-96 Regular Sess. (1994). (return to text)

[23] Ray Sotero, Gannett News Service, Apr. 5, 1995. (return to text)

[24] Jake Henshaw, Gannett News Service, Aug. 17, 1995. (return to text)

[25] Scott, supra note 14, at 11. (return to text)


[27] Michele Fuetsch, Hollywood Park Looking for Investors to Operate Card Club, L.A.Times, Oct. 14, 1993, at B3. (return to text)

[28] Past legislative measures have proposed a 10-mile radius. (return to text)

[29] Hollywood Park Reports California Card Club Bill Signed into Law, PR Newswire,Aug., 4, 1995. The measure was largely passed due to the fact that the state's concernsover local social impact and traffic have been consequentially addressed by zoningexisting track facilities. (return to text)

[30] Scott, supra note 14, at 10. (return to text)


[32] Id. While tribes retain sovereign powers, they are protected by and subject to theUnited States federal government. (return to text)

[33] For a more detailed discussion of Indian Gaming please see Indian Gaming inCalifornia by Richard Wilson, PLRI Reports June 1996. (return to text)

[34] Lungren, supra note 1, at 10. Other estimates calculate that nationwide, Indianreservation casinos generate approximately $3.9 billion annually in gross revenues. GlenMartin, Feud Unlikely to Slow Down Tribal Casinos, San Francisco Chron., Oct. 23, 1995,at A1. (return to text)

[35] Id. at 12; Steve Wiegand, The Canvas Casino: California, Indian Tribes Battle overGambling, Cal. J., Aug. 1993, at 25. (return to text)

[36] Id. The Sycuan casino estimates 1.5 million visitors patronize their establishmenteach year. Gambling revenues also fund education scholarships for tribe members.(return to text)

[37] The case revolved around the Cabazon tribe's right to conduct high-stakes bingooperations that did not conform to California's penal code regarding bingo regulation.(return to text)

[38] 25 U.S.C. 2701-2721. (return to text)

[39] 25 U.S.C. 2703. (return to text)

[40] Max Vanzi, Lungren Praises U.S. Pledge to Crack Down on Tribal Casinos, L.A.Times, Aug. 17, 1995, at A3. (return to text)

[41] Wiegand, supra note 34, at 27. (return to text)

[42] The U.S. District Court for the Eastern District of California refused to determinewhether California allows the operation of a slot machine in the form of the state lottery'sgame, Quick-Pick Keno. Rumsey Indian Rancheria v. Wilson, 1993 U.S. Dist. LEXIS9877 (1993). The state concedes that if the lottery game is determined to be a slotmachine device, then California would permit slot machines to be operated. (return totext)

[43] Rumsey v. Wilson, 64 F.3d at 1257 (1994). The Rumsey decision is currentlypending United States Supreme Court appeal. (return to text)

[44] Id. at 1258; 1994 U.S. App. LEXIS 40832, at 13. (return to text)

[45] Cheyenne River Sioux Tribe v. South Dakota, 3 F.3d 273 (8th Cir. 1993). (return totext)

[46] 54 F.3d 5353, slip op. 4879 (1995). (return to text)

[47] Sycuan v. Roach, 54 F.3d 535, slip op. at 4889 (citing 18 U.S.C. 1166(d)). (return totext)

[48] Martin, supra note 33, at A1. (return to text)



[51] Brad Hayward, Brown Takes Favorite's Role, Sacramento Bee, at A1. (return to text)

[52] Capital Weekly summary of pending initiatives, January 8, 1996. (return to text)

[53] Virtual casinos have been created in Europe and South America (Belize), where theyare legal, yet their access is world-wide. (return to text)

[54] Venture Tech Teams Up with Sports International Inc. To Fortify Internet Gambling

Security, Business Wire, Oct. 5, 1995. (return to text)

[55] Id. Sports International handled over $48 billion in wagers in its first year ofoperation. (return to text)

[56] For additional sources, See Pat Doyle, New world of 'virtual' casinos faces realopposition; Critics say betting on the Internet violates federal law because gamblingbusinesses use modems hooked to phone lines. But with businesses in foreign countries,enforcing the law is another matter. The Star Tribune, 27 November 1995; DennisCamier & Keith White, Reality may soon catch up hype of Internet's virtual casinos,Gannett News Service, February 29, 1996; Better (or Bettor) Nation?, The ChristianScience Monitor, July 7, 1995. (return to text)

[57] The Field Institute, A Summary of Public Opinion About Legalized Gambling inCalifornia, California Opinion Index vol. 5, Aug. 1995. (return to text)



[60] An asterisk "*" indicates that a provision of state law is noteworthy or unique. (returnto text)

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