NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9244
SPONSOR: Lentol
 
TITLE OF BILL:
An act to amend the penal law, in relation to the definition of a coin
operated gambling device
 
PURPOSE OR GENERAL IDEA OF BILL:
To clarify the definition of gambling to make clear that coin-operated
amusement machines aka player operated amusement machines that provide
an extra ball, time or game does not constitute "something of value" and
is, per se, "gambling".
 
SUMMARY OF SPECIFIC PROVISIONS:
This legislation amends § 225(6) and (7-a) of the Penal Law to delete
from the definition of "something of value" those sections which merely
provide extra time or extra game or an additional ball on amusement
machines.
 
JUSTIFICATION:
The 2011 amendment to 7-a of PL 225.00 intended to clarify which amuse-
ment machines were not to be considered gambling devices. In his "Prac-
tice Commentary" to McKinney's Penal Law Article 225.00, William C.
Donnino says:
In 2011, the Legislature accepted the commentary's suggestion (see
Legistlative Memorandum), repealed the 1987 amendment to the definition
of "slot machine", and added a sentence to the definition of "slot
machine", and added a sentence to be definition of "coin operated gambl-
ing device", a "machine which awards free of extended play"; provided
"the outcome (of the game) depends upon the skill of the player and not
in a) material degree upon an element of chance." (Penal Law §
225.00(7-a.)). That amendment has the effect of excluding the awarding
of a "free or extended play" from the definition of "something of
value", which is a major factor in the definition of "gambling"; but,
only if the other major factor in the definition of gambling obtains,
namely, the outcome of the game depends on skill "and not in a material
degree upon the element of chance".
(As noted, technically, the 2011 amendment as to. what constitutes a
"gambling device" was placed in the definition of "coin operated gambl-
ing device" rather than the definition of "gambling device," but the
language of the exception is direct at what constitutes a "gambling
device").
Classical amusement machines do not eject any money. Before 1987, the
player would insert coins to play and depending on his or her skill
receive an extra pinball or additional time to play the game. No money
or slip of paper is ejected to "reward" the player regardless of skill."
Since the passage of Assembly Bill 9286 became Chapter 8 Laws 2011,
there is still confusion concerning what constitutes a legal, amusement
machine. The elimination of the phrase "...provided that the outcome
depends upon the skill of the player and not any material degree upon an
element of chance," will clarify for law enforcement what is and is not
a gambling device or slot machine under § 225.00 of the Penal Law
"gambling offenses".
 
PRIOR LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
Possible increased sales tax from new amusement machine purchases.
 
EFFECTIVE DATE:
Immediately