ORS Chapter 464 - Oregon Statutes

Chapter 464 — Games

 

2009 EDITION

 

 

GAMES

 

PUBLICHEALTH AND SAFETY

 

ADMINISTRATION

 

464.250     Powersand duties of Department of Justice; fees; rules

 

464.270     Licensingrequirements

 

464.280     Burdento establish qualifications; applications; liability of persons who supplyinformation

 

464.290     Eligibilityfor license requires independent control by organization

 

464.300     Temporarylicense

 

464.310     Eligibilityto participate in management or operation of games; rules

 

464.340     Limitationon time spent administering or operating games; rules

 

464.350     Limitationon operation of games; rules

 

464.360     Limitationon number of games for which organization can be licensed

 

464.380     Variationsdepending on number, frequency or gross income authorized; rules

 

464.385     Exemptionfrom licensing and reporting requirements for organizations conducting certainraffles

 

464.390     Exceptions;review; continuance of exception

 

LOCALAUTHORITY

 

464.420     Localprohibition in lieu of state regulation

 

FINANCE

 

464.450     OregonGaming Account; uses

 

DISCIPLINE

 

464.470     Groundsfor suspension, revocation or denial of or refusal to renew license or permit;civil penalty

 

464.480     Procedurefor suspension, revocation or denial of license

 

464.490     Vacationof suspension upon payment of penalty

 

ENFORCEMENT

 

464.500     Enforcementauthority of department; hearings

 

464.510     Regulationof rent; inspection of premises and records; rules; reports

 

464.520     Injunctiverelief; when other licenses may be voided; investigation of off-race coursemutuel wagering applicant or licensee

 

464.530     Jurisdictionof Circuit Court for Marion County; liability of department personnel

 

PENALTIES

 

464.995     Penalties

 

      464.010 [Repealed by1967 c.344 §10]

 

      464.020 [Repealed by1967 c.344 §10]

 

      464.110 [Repealed by1967 c.344 §10]

 

      464.120 [Repealed by1967 c.344 §10]

 

      464.130 [Repealed by1967 c.344 §10]

 

      464.140 [Amended by1955 c.516 §1; repealed by 1967 c.344 §10]

 

      464.150 [Repealed by1967 c.344 §10]

 

      464.160 [Repealed by1967 c.344 §10]

 

      464.170 [Repealed by1967 c.344 §10]

 

      464.180 [Repealed by1967 c.344 §10]

 

      464.190 [Repealed by1967 c.344 §10]

 

      464.210 [Repealed by1967 c.344 §10]

 

      464.220 [Repealed by1967 c.344 §10]

 

      464.230 [Repealed by1967 c.344 §10]

 

ADMINISTRATION

 

      464.250Powers and duties of Department of Justice; fees; rules. (1) TheDepartment of Justice has the following powers and duties relating to theregulation of bingo, lotto or raffle games or Monte Carlo events:

      (a)To authorize and regulate the operation of bingo, lotto and raffle games andMonte Carlo events permitted under ORS 167.117 and to adopt rules in accordancewith applicable provisions of ORS chapter 183 for the performance of thedepartment’s duties.

      (b)To issue and renew licenses and permits for operation of bingo, lotto andraffle games and Monte Carlo events, including the manufacturers and suppliersof equipment and supplies necessary for the operation of such activities andescrow agents holding money or property to be awarded as a prize, and to adoptlicense and permit fees. Licenses and permits are valid for a period of oneyear unless renewed. The department shall set fees at an amount sufficient tocover all costs incurred by the department in its activities. License feesconsist of an initial payment, which shall be in an amount established by rule,prior to issuance or renewal of the license, together with a monthly paymentconstituting a percentage of the licensee’s monthly gross income from theoperation each month thereafter. An applicant for a license or a permit shallsubmit with the application a sum adequate to pay the required initial feepayment. If the application is later withdrawn by the applicant or if it isdenied by the department, the department shall retain the portion of the amountsubmitted to it that will pay the reasonable costs expended for processing andinvestigating the application. In a particular case, if the fee adopted by thedepartment is less than the actual expenses of the department to investigatethat particular application, the department may charge to that particularapplicant an additional fee to repay the department for those costs. Thedepartment may refuse to proceed with its investigation or to issue a licenseuntil the department has been fully paid for those costs. The department shallcreate at least two classes of licenses for each activity regulated under thissection. The licensing and operational requirements for licensees and theextent to which background checks are conducted under paragraph (d)(B) of thissubsection shall be commensurate with the size of the licensee’s bingo, lotto,raffle or Monte Carlo event operations. The department shall adopt rulesexempting from licensing any organization that would otherwise qualify for alicense and that is engaged in minimal bingo, lotto or Monte Carlo eventactivity.

      (c)To prescribe the manner and method of payment of all moneys to be paid to orcollected by the department.

      (d)To adopt requirements as to what information an applicant must provide to thedepartment. However, each license applicant must provide, and the departmentshall require, the names and addresses of all persons having a management orownership interest in the bingo, lotto, raffle or Monte Carlo event operationor in the premises on which the operation is conducted and the names andaddresses of all officers and directors of the applicant organization. Thedepartment shall also require the names and addresses of all persons employedin bingo, lotto, raffle or Monte Carlo event operations. The following apply toapplications under this paragraph:

      (A)An applicant shall certify, under oath, that the persons named on theapplication are all of the persons known by the applicant to have an interestin the bingo, lotto, raffle or Monte Carlo event operation or the premises onwhich the operation is conducted including all officers and directors of theapplicant organization.

      (B)The department may require fingerprints, a photograph, a handwriting sample andbackground checks, including state and nationwide criminal records checks underORS 181.534, on any person seeking a license from it or any person holding aninterest in any bingo, lotto, raffle or Monte Carlo event operation or in thepremises on which it is conducted. The department may also require fingerprintsor background checks, including state and nationwide criminal records checksunder ORS 181.534, of any manager or other employee of such a bingo, lotto,raffle or Monte Carlo event operation.

      (e)To adopt record keeping requirements for licensees of the department and thesubmission of reports to the department as the department determines necessary.The department may require licensees to record and report income from bingo,lotto, raffle, Monte Carlo events, concessions and other related operations,the amounts received from each player, the costs and expenses of operations,the nature and value of prizes and the fact of distribution of such prizes tothe winners thereof. The department may adopt internal financial and inventorycontrol requirements under this paragraph that are based on and commensuratewith the size of a licensee’s bingo, lotto, raffle or Monte Carlo eventoperations.

      (f)To regulate and establish maximum limits on income derived by licensees frombingo, lotto, raffles or Monte Carlo events. However, in establishing limits,the department shall take into account:

      (A)The nature, character and scope of the activities of the licensee;

      (B)The sources of other income to the licensee; and

      (C)The percentage or extent to which income derived from bingo, lotto, raffles orMonte Carlo events is used for charitable purposes, as distinguished fromnonprofit purposes other than charity.

      (g)To regulate the manner of operation of bingo, lotto and raffle games and MonteCarlo events conducted by licensees, including the approval of which games maybe played and the equipment to be used. The department shall regulate the typesof equipment, rules and methods of play to ensure the integrity and fairness ofthe games.

      (h)To cooperate with state and local law enforcement agencies in investigatingmatters within the scope of the department’s duties and responsibilities.

      (i)To establish maximum limits on compensation paid to persons employed bycharitable, fraternal or religious licensees, for the purpose of conductinglicensed games, not to exceed 200 percent of the federal minimum wage standard,or in the case of a person who supervises a bingo, lotto, raffle or Monte Carloevent operation for a charitable, fraternal or religious organization and issubject to the limitations of ORS 464.340, 300 percent of the federal minimumwage standard, and to establish maximum limits for other expenses connectedwith such operations. In establishing these limits, the department shallconsider the amount of income received, or expected to be received, by theorganization from the bingo, lotto, raffle, Monte Carlo events, concessions andother related operations and the amount of money the operation could generatefor the organization’s purposes absent such expenses. The department may alsotake into account other factors, including but not limited to whethercharitable purposes are benefited by the activities.

      (2)The department may not require persons working as volunteers in a bingo, lotto,raffle or Monte Carlo event operation conducted by a bona fide charitable,fraternal or religious organization to obtain permits for such work if thepersons do not receive compensation of any kind from the organization otherthan reimbursement for actual or reasonable expenses, or have any managerial orsupervisory responsibility in connection with it. The department may requirethat bingo, lotto, raffle and Monte Carlo event operators employing unlicensedvolunteers submit to the department periodically the names, addresses and datesof birth of the volunteers. The department may adopt reasonable characterstandards for volunteers, and if a volunteer does not meet the standards, thedepartment may require that the licensee not allow the volunteer to work forthe licensee.

      (3)Subject to ORS 167.118, the department by rule may establish value limits forprizes awarded at bingo, lotto or raffle games or Monte Carlo events and mayregulate or prohibit the giving to patrons of any other thing of value topromote attendance at the games.

      (4)The department by rule may establish a maximum amount that a person may wagerat a Monte Carlo event. [1987 c.914 §4; 1991 c.274 §3; 1991 c.962 §19; 1997c.867 §3; 1999 c.218 §2; 2001 c.576 §3; 2003 c.417 §2; 2005 c.730 §26]

 

      464.270Licensing requirements. (1) The Department of Justice shall not issue alicense to conduct bingo, lotto or raffle games or Monte Carlo events to anyorganization unless:

      (a)The organization is exempt from payment of federal income taxes as acharitable, fraternal or religious organization; and

      (b)The organization has held such tax exempt status for at least one yearpreceding its application to the department for a license and during which timethe organization engaged primarily in its charitable, fraternal or religiouspurpose.

      (2)An application for a license must be accompanied by a certificate of theorganization’s exemption from payment of income taxes as a charitable,fraternal or religious organization and by such other evidence of theorganization’s status under subsection (1) of this section as the departmentmay require.

      (3)If an organization loses its tax exempt status after having applied for orhaving received a license, the organization shall promptly notify thedepartment of the change in status. A license issued by the department shallcease to be valid whenever the organization to which it is issued loses its taxexempt status. [1987 c.914 §11; 1997 c.867 §4]

 

      464.280Burden to establish qualifications; applications; liability of persons whosupply information.(1) The burden is upon holders of bingo, lotto, raffle or Monte Carlo eventlicenses and permits and applicants for such licenses or permits to establishthe qualifications required of such license or permit holders or applicants, byclear and convincing evidence. The burden is also upon the licensee or licenseapplicant to establish by clear and convincing evidence the qualifications ofthe premises in which the licensed activity will be conducted.

      (2)Application for a license to operate a bingo, lotto or raffle game or MonteCarlo event must be accompanied by:

      (a)A written consent to the inspections authorized under ORS 167.118, 464.250 to464.380, 464.420 and 464.450 to 464.530 and under such rules as the departmentmay adopt; and

      (b)A written waiver of potential liability claims against the State of Oregon, itsagencies, employees and agents for any damages resulting from any disclosure orpublication of any information acquired by the Department of Justice during anyof its investigations, inquiries or hearings.

      (3)All license and permit holders and persons having any financial, management oremployment interest in bingo, lotto, raffle or Monte Carlo event licensees,including but not limited to employees and agents of such licensees, shall havea duty to inform the department or its staff of any act or omission which theybelieve would constitute a violation of state law or department rules relatingto the operation of bingo, lotto or raffle games or Monte Carlo events. No personwho so informs the department or its staff shall be discriminated against by alicensee because of supplying such information. If a licensee or permittee, oran officer or director thereof, upon request from the department or itsdesignee, fails to produce requested information, evidence or testimony,relating to a bingo, lotto, raffle or Monte Carlo event operation, thedepartment may suspend or revoke the license or permit of the licensee orpermittee.

      (4)Any written or oral statement made in the course of an official investigationor other proceeding of the department by any member, employee or agent of thedepartment, or by any witness testifying under oath, which is relevant to theinvestigation or proceeding is absolutely privileged and shall not be thesource of liability for slander, libel or defamation, or constitute any groundsfor recovery in a civil action. [1987 c.914 §20; 1997 c.867 §5]

 

      464.290Eligibility for license requires independent control by organization. An organizationshall not be eligible to obtain or retain a license to conduct a bingo, lotto,raffle or Monte Carlo event operation if it does not exercise, or if it ceasesto exercise, independent control over its activities and budget. However, anorganization shall not be ineligible for a license merely because it ischartered by or affiliated with another organization, so long as it exercisesindependent control over its activities and budget. [1987 c.914 §9; 1997 c.867 §6]

 

      464.300Temporary license.The Department of Justice may specially license, in such manner as it findsappropriate, the conduct of a temporary bingo, lotto, raffle or Monte Carloevent operation whenever the operation is to be for a limited period of timenot exceeding 30 days. A license shall be granted under this section for uniqueor occasional events subject to such record keeping and reporting requirementsas the department shall require of such operations. [1987 c.914 §7; 1997 c.867 §7]

 

      464.310Eligibility to participate in management or operation of games; rules. (1) A licenseeof the Department of Justice under ORS 167.117 and 167.118 and this chapter, oran applicant for a license under ORS 167.118, 464.250 to 464.380, 464.420 and464.450 to 464.530, without approval of the department, shall not knowinglypermit any person to participate in the management or operation of any bingo,lotto or raffle game or Monte Carlo event for which a license from thedepartment is required if that person:

      (a)Has been convicted of or forfeited bond upon, or has been granted diversionupon a charge involving forgery, theft, willful failure to make requiredpayments or reports to a government agency at any level, or filing falsereports to such an agency, or of any similar offense, or of bribing orotherwise unlawfully influencing a public official or employee of any state orthe United States, or of any crime, whether a felony or a misdemeanor,involving any gambling activity or physical injury to any person, or involvingmoral turpitude; or

      (b)Has violated, failed to comply with, or refused to comply with provisions,requirements, conditions, limitations or duties imposed by ORS 167.118, 464.250to 464.380, 464.420 and 464.450 to 464.530 or the rules of the department.

      (2)No person other than a member or employee of a licensed organization, or anyother person authorized under the rules of the Department of Justice, mayparticipate in the management or operation of a licensed bingo, lotto, raffleor Monte Carlo event operation. No person who participates in the management oroperation of any such bingo, lotto, raffle, Monte Carlo event, concession orrelated operation may concurrently participate in the management or operationof any other operation unless such participation is approved by the department.The department shall adopt rules authorizing concurrent participation on atemporary basis in response to emergency circumstances. [1987 c.914 §§17(1),21; 1997 c.867 §8; 2001 c.228 §3]

 

      464.340Limitation on time spent administering or operating games; rules. The Departmentof Justice by rule shall prohibit any licensee from allowing any person tospend more than 30 hours in any one week administering the licensee’s games, oroperating the licensee’s games, or both. [1987 c.914 §5; 1991 c.274 §4; 2001c.228 §5]

 

      464.350Limitation on operation of games; rules. (1)(a) The Department of Justice byrule may establish limits on the number of hours per day and days per week thatorganizations licensed by the department may operate bingo or lotto games orMonte Carlo events.

      (b)The department, by its rules, shall not permit the operation of bingo or lottogames by any licensee for more than 15 hours in any one week nor for more thanthree days in any one calendar week.

      (2)An organization authorized by law to operate Monte Carlo events:

      (a)May not conduct more than seven Monte Carlo events in any 12-month period;

      (b)May not directly or indirectly rent a facility for a Monte Carlo event from alicensed manufacturer or supplier of Monte Carlo event equipment; and

      (c)May not enter into a binding legal contract with a licensed supplier of MonteCarlo equipment to conduct events for a period in excess of one year.

      (3)No Monte Carlo event shall be conducted that exceeds 12 hours in length. Forthe purposes of this subsection, each 12-hour period shall begin at theofficial starting time of the Monte Carlo event and run continuously, whetheror not contests of chance are continuously operated.

      (4)Monte Carlo events shall not be conducted at the same location more than 15times in a calendar month or more than 40 times in a calendar year. [1987 c.914§8; 1997 c.867 §9; 2003 c.14 §297; 2003 c.417 §3]

 

      464.360Limitation on number of games for which organization can be licensed. (1) Except asprovided in subsection (2) of this section, an organization may, at any onetime, be licensed to conduct only one bingo, lotto or Monte Carlo eventoperation. The license shall authorize the organization to conduct itsoperation within only one county, which shall be a county designated by thelicensee at the time of application for the license. The license shallauthorize the organization to conduct games at a designated location that shallnot vary except upon authorization of the Department of Justice.

      (2)The department may license an organization to conduct one bingo game per countyin not more than three counties provided that:

      (a)The bingo games are conducted at a location in which the organization regularlyconducts charitable program activities; and

      (b)The organization has a cumulative annual handle from its bingo operation thatdoes not exceed $250,000. [1987 c.914 §10; 1997 c.867 §10; 2005 c.355 §1]

 

      464.380Variations depending on number, frequency or gross income authorized; rules. (1) In adoptingrules for the licensing of bingo, lotto or Monte Carlo event operations, theDepartment of Justice may impose, to the extent it finds practicable, more orfewer requirements upon such operations on the basis of the number of games,the frequency of Monte Carlo events or the gross income of the operation.

      (2)As used in subsection (1) of this section, “gross income” means the totalamount of money or other thing of value bet, less a deduction therefrom of theamount returned to players as prizes. [1987 c.914 §6; 1997 c.867 §11; 2001c.228 §4]

 

      464.385Exemption from licensing and reporting requirements for organizationsconducting certain raffles. Charitable, fraternal or religious organizationsthat conduct raffles that have handles of less than $10,000 in one calendar yearare exempt from the licensing and reporting requirements for raffles under ORS167.108 to 167.164 and 464.270 to 464.530. [2001 c.576 §2]

 

      464.390Exceptions; review; continuance of exception. (1) When the Department ofJustice determines that there is a compelling community need for the charitableactivities funded by a bingo operation, and that funding will be seriouslyreduced by the operation of ORS 167.117 and 167.118 and this chapter, then thedepartment may grant exceptions to ORS 464.250 (1)(i), 464.340 and 464.350 forany bingo licensee that was operating a bingo game in January 1987.

      (2)The department shall review the exceptions granted under this section not lessthan once per year, unless the department determines that there has been a materialchange of circumstances since the time the exceptions were granted to thelicensee, in which case the department shall initiate an immediate review ofthe license.

      (3)The department may not continue an exception to a licensee that otherwise meetsthe requirements of this section if there has been a material change ofcircumstances since the time when the licensee was granted the exception.

      (4)For purposes of this section, “a material change of circumstances” includes:

      (a)Failure of the licensee to conduct a bingo game for 18 consecutive months inaccordance with the exceptions previously granted by the department; or