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S10479 Summary:

BILL NOS10479
 
SAME ASNo Same As
 
SPONSORSCARCELLA-SPANTON
 
COSPNSR
 
MLTSPNSR
 
Amd §1, Chap 697 of 2025; amd §§186, 189, 195-c, 195-o & 195-q, rpld §196-c sub 8, Gen Muni L
 
Permits certain fraternal organizations to conduct charitable gaming by operating electronic bell jar vending machines.
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S10479 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10479
 
                    IN SENATE
 
                                      May 15, 2026
                                       ___________
 
        Introduced  by Sen. SCARCELLA-SPANTON -- read twice and ordered printed,
          and when printed to be committed to the Committee  on  Racing,  Gaming
          and Wagering
 
        AN  ACT  to  amend chapter 697 of the laws of 2025, amending the general
          municipal law relating to electronic bell  jar  games,  to  amend  the
          general  municipal  law,  in  relation to permitting certain fraternal
          organizations to conduct charitable  gaming  by  operating  electronic
          bell  jar  vending  machines; and to repeal certain provisions of such
          law relating thereto
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. Section 1 of chapter 697 of the laws of 2025, amending the
     2  general municipal law relating to electronic bell jar games, as  amended
     3  by chapter 4 of the laws of 2026, is amended to read as follows:
     4    Section 1. Legislative findings and purpose. 1. The legislature hereby
     5  finds that:
     6    (a)  bell jar games are a popular and profitable fundraising mechanism
     7  for bona fide not-for-profit organizations across the state,  generating
     8  millions of dollars in net revenues for charitable purposes every year;
     9    (b)  organizations that offer bell jars and other games of chance must
    10  meet strict standards established by the New York state general  munici-
    11  pal  law and the New York state gaming commission, including receiving a
    12  license to conduct charitable gaming activities; and
    13    (c) while other types of gaming in New York state  have  continued  to
    14  expand  and  improve,  the operation of charitable gaming activities has
    15  largely remained the same over the last several decades.
    16    2. (a) For the aforementioned reasons, the legislature hereby declares
    17  that veteran organizations, fraternal organizations, and volunteer  fire
    18  companies  licensed  to  conduct charitable gaming would greatly benefit
    19  from the ability to operate electronic bell jar vending machines,  which
    20  display  and  dispense  pre-printed bell jar tickets that have predeter-
    21  mined winners and predetermined values for  prizes,  in  order  to  help
    22  increase  charitable  gaming  profits  across the state and attract more
    23  members to join such organizations; and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15880-01-6

        S. 10479                            2
 
     1    (b) Provided further, the legislature also declares that  this  legis-
     2  lation  includes  appropriate  safeguards to ensure that electronic bell
     3  jar vending machines remain a limited and controlled  fundraising  tool,
     4  distinct  from  video  lottery  terminals or slot machines in design and
     5  function.  The  machines  authorized  herein  may  only  be  operated by
     6  licensed veteran organizations, fraternal  organizations  and  volunteer
     7  fire  companies, are limited pursuant to the provisions of subdivision 6
     8  of section 195-c of the general municipal law in order to prohibit casi-
     9  no-like gaming parlors, and are solely for use by members of such veter-
    10  an organizations, fraternal organizations, and volunteer fire companies.
    11    § 2. Subdivision 23 of section 186 of the general  municipal  law,  as
    12  added by chapter 4 of the laws of 2026, is amended to read as follows:
    13    23.  "Veteran organization" means a members-only organization compris-
    14  ing veterans and their family members, where the organization's focus is
    15  on the support of and advocacy for veterans and military service members
    16  [and that is licensed to operate bell jar games as of  November  thirti-
    17  eth, two thousand twenty-five and shall not include any auxiliary organ-
    18  izations].
    19    §  3.  Section 186 of the general municipal law is amended by adding a
    20  new subdivision 25 to read as follows:
    21    25. "Fraternal organization" means any society, order, state headquar-
    22  ters, or association within this state, except a college or high  school
    23  fraternity,  that  is not organized for profit, that is a branch, lodge,
    24  or chapter of a national or state organization, and that  exists  exclu-
    25  sively for the common business or sodality of its members.
    26    §  4.  Subdivision  10 of section 189 of the general municipal law, as
    27  amended by chapter 574 of the laws  of  1978,  is  amended  to  read  as
    28  follows:
    29    10.  No  person  except  a bona fide member of the licensed authorized
    30  organization [shall participate in the  management  of  such  games;  no
    31  person  except  a  bona fide member of the licensed authorized organiza-
    32  tion,] or its auxiliary or affiliated organization, shall participate in
    33  the operation of such game, as set forth in section one hundred  ninety-
    34  five-c of this article.
    35    §  5. The section heading and subdivisions 1 and 6 of section 195-c of
    36  the general municipal law, as amended by chapter 4 of the laws of  2026,
    37  are amended to read as follows:
    38    Persons  operating  and  managing  games; equipment; expenses; compen-
    39  sation.  1. No person shall [operate] manage any game  of  chance  under
    40  any  license  issued under this article except a bona fide member of the
    41  authorized organization to which the license is issued, or a  bona  fide
    42  member  of  an  organization or association which is an auxiliary to the
    43  licensee or a bona fide member of  an  organization  or  association  of
    44  which  such  licensee is an auxiliary or a bona fide member of an organ-
    45  ization or association which is affiliated with the licensee  by  being,
    46  with it, auxiliary to another organization or association. Nothing here-
    47  in  shall  be construed to limit the number of games of chance licensees
    48  for whom such persons may operate games of chance nor  to  prevent  non-
    49  members  from assisting the licensee in any activity other than managing
    50  [or operating] games. No game of chance  shall  be  conducted  with  any
    51  equipment  except  such  as  shall  be owned or leased by the authorized
    52  organization so licensed or used without  payment  of  any  compensation
    53  therefor by the licensee. However, in no event shall bell jar tickets be
    54  transferred from one authorized organization to another, with or without
    55  payment of any compensation thereof. The head or heads of the authorized
    56  organization  shall  upon  request certify, under oath, that the persons

        S. 10479                            3
 
     1  [operating] managing any game of chance are bona fide  members  of  such
     2  authorized  organization,  auxiliary  or  affiliated  organization. Upon
     3  request by an officer or the department any such person involved in such
     4  games  of  chance  shall  certify  that they have no criminal record. No
     5  items of expense shall be  incurred  or  paid  in  connection  with  the
     6  conducting  of  any  game of chance pursuant to any license issued under
     7  this article except  those  that  are  reasonable  and  are  necessarily
     8  expended  for  games  of chance supplies and equipment, prizes, security
     9  personnel, stated rental if  any,  bookkeeping  or  accounting  services
    10  according  to  a  schedule of compensation prescribed by the commission,
    11  janitorial services and utility supplies if any, and license  fees,  and
    12  the  cost  of bus transportation, if authorized by such clerk or depart-
    13  ment. No commission, salary, compensation, reward or recompense shall be
    14  paid or given to any person for the sale or assisting with the  sale  of
    15  raffle.
    16    6. (a) The maximum number of electronic bell jar vending machines that
    17  a veteran organization, fraternal organization or volunteer fire company
    18  may operate shall be determined by the commission, but shall in no event
    19  exceed three machines.
    20    (b) (i) The use of an electronic bell jar vending machine shall not be
    21  approved or permitted in any location restricted by a compact between an
    22  Indian tribe and the state of New York, as determined by the commission.
    23    (ii)  In  cities  with  a  population of one million or more as of the
    24  latest federal decennial census, the following geographic considerations
    25  shall apply, notwithstanding any other provision of  this  paragraph  or
    26  paragraph (a) of this subdivision:
    27    For  any  veteran  organization,  fraternal organization, or volunteer
    28  fire company at a premises located within two thousand five hundred feet
    29  of any gaming facility, the maximum number of electronic bell jar  vend-
    30  ing  machines  that  may  be operated shall be one. The commission shall
    31  establish procedures for measuring such distance. For any veteran organ-
    32  ization or volunteer fire company at a premises located  more  than  two
    33  thousand  five  hundred  feet but not more than one mile from any gaming
    34  facility, the maximum number of electronic  bell  jar  vending  machines
    35  that  may  be  operated  shall  be two, provided that the commission, in
    36  authorizing such machines, considers local  market  conditions  and  the
    37  objectives  of  preventing market oversaturation. For any veteran organ-
    38  ization, fraternal organization, or volunteer fire company at a premises
    39  located more than one mile from any gaming facility, the maximum  number
    40  of  electronic  bell  jar vending machines shall be three, provided that
    41  the commission shall retain the discretion to  impose  stricter  limita-
    42  tions  based on local density of veteran organizations, fraternal organ-
    43  izations, and/or  volunteer  fire  companies  operating  such  machines,
    44  potential impact on existing gaming facilities, and the determination of
    45  the  commission  of  what will best serve public convenience, consistent
    46  with the objectives set forth in paragraph (c) of this subdivision.  The
    47  commission  shall, by rule or regulation, further define the methodology
    48  for assessing local density and market conditions within such cities and
    49  may establish specific zones or areas where the placement of  electronic
    50  bell  jar  vending  machines  is  further  limited  or requires enhanced
    51  review, to ensure the responsible integration of such charitable  gaming
    52  opportunities.
    53    (iii) The commission shall have the authority to establish, by rule or
    54  regulation,  specific  proximity  zones  around gaming facilities and to
    55  modify the limitations provided in subparagraphs (i) and  (ii)  of  this
    56  paragraph  based  upon  the determination of the commission of what will

        S. 10479                            4

     1  best serve public  convenience,  potential  impact  on  existing  gaming
     2  facilities,  and  the need to prevent loss of employment at such facili-
     3  ties, provided that any such modification shall be consistent  with  the
     4  objective  of  supporting  charitable  fundraising while maintaining the
     5  existing gaming landscape and preventing market oversaturation; provided
     6  however, that any such modification shall constitute only a reduction of
     7  the thresholds established by this subdivision.
     8    (c) (i) Notwithstanding any  other  provision  of  this  article,  the
     9  commission  shall  have  the discretion to determine the number of elec-
    10  tronic bell jar vending machines that may be  operated  by  any  veteran
    11  organization, fraternal organization, or volunteer fire company, and the
    12  location  of  such  machines;  provided,  however,  that  such number of
    13  machines shall not exceed the limits established  in  this  subdivision.
    14  Such  discretion  shall be exercised to ensure that the introduction and
    15  operation of electronic bell jar vending machines occurs exclusively  to
    16  the   fundraising  capabilities  of  legitimate  veteran  organizations,
    17  fraternal organizations, or volunteer fire companies  while  maintaining
    18  the  stability  of  existing regulated gaming sectors and revenue to the
    19  state, and avoiding any loss of employment at  existing  gaming  facili-
    20  ties.
    21    (ii)  The  commission shall deny, revoke, or limit the number of elec-
    22  tronic bell jar  vending  machines  a  veteran  organization,  fraternal
    23  organizations,  or  volunteer fire company may operate if the commission
    24  determines that such organization has been established,  structured,  or
    25  is being utilized, directly or indirectly, to obtain a greater number of
    26  machines than otherwise would be permitted. This consideration includes,
    27  but is not limited to, the creation of subsidiary entities, shell organ-
    28  izations,  or  any  other  arrangement where the facts and circumstances
    29  indicate an intent to circumvent  the  limitations  set  forth  in  this
    30  subdivision.  The  commission is empowered to scrutinize the governance,
    31  operational control, and financial interdependence of  organizations  to
    32  make such determinations.
    33    (iii)   The   co-siting   or   joint   housing   of  multiple  veteran
    34  organizations, fraternal organizations and/or volunteer  fire  companies
    35  at  a  single premises or contiguous premises for the primary purpose of
    36  increasing the aggregate number of electronic bell jar vending  machines
    37  at  such  location beyond what would otherwise be permitted for a single
    38  veteran organization, fraternal organization, or volunteer fire  company
    39  operating  at  such premises is prohibited, unless explicitly authorized
    40  by the commission upon a finding that  such  arrangement  is  consistent
    41  with  the  public  interest  and  the  objectives of this article.   The
    42  commission shall promulgate rules and  regulations  to  effectuate  this
    43  provision,  considering  factors  such  as  shared  operational control,
    44  membership overlap, and the primary purpose of  the  co-siting  arrange-
    45  ment.
    46    §  6.  Subdivision  8 of section 195-c of the general municipal law is
    47  REPEALED.
    48    § 7. Subdivisions 1 and 4 of section 195-o of  the  general  municipal
    49  law, as amended by chapter 4 of the laws of 2026, are amended to read as
    50  follows:
    51    1.  Distribution; distributors. Any distributor licensed in accordance
    52  with section one hundred eighty-nine-a of  this  article  to  distribute
    53  bell  jar tickets or electronic bell jar vending machines shall purchase
    54  such tickets and vending machines only from licensed  manufacturers  and
    55  may manufacture coin boards and merchandise boards only as authorized in
    56  subdivision  one-a  of  this  section. Licensed distributors of bell jar

        S. 10479                            5
 
     1  tickets shall sell such tickets and vending machines  only  to  not-for-
     2  profit,  charitable or religious organizations registered by the commis-
     3  sion and shall sell, lease or otherwise distribute electronic  bell  jar
     4  vending  machines  only  to  eligible  veteran  organizations, fraternal
     5  organizations, or volunteer fire companies as set forth in this article.
     6  Any licensed distributor who willfully violates the provisions  of  this
     7  section shall: (a) upon such first offense, have their license suspended
     8  for  a  period of thirty days; (b) upon such second offense, participate
     9  in a hearing to be conducted by  the  commission,  and  surrender  their
    10  license  for  such period as recommended by the commission; and (c) upon
    11  such third or subsequent offense, have their  license  suspended  for  a
    12  period  of  one  year and shall be guilty of a class E felony. Any unli-
    13  censed distributor who violates this section shall be guilty of a  class
    14  E felony.
    15    4. Invoices; agreements. (a) A distributor shall supply with each sale
    16  of a bell jar product an itemized invoice showing the distributor's name
    17  and address, the purchaser's name, address, and license number, the date
    18  of  the  sale, the account number identifying the sale from the manufac-
    19  turer to distributor and the account number identifying  the  sale  from
    20  the distributor to the licensed organization, and the description of the
    21  deals,  including the form number, the serial number and the ideal gross
    22  from every deal of bell jar or similar game.
    23    (b) Prior to the sale, lease, or distribution of  an  electronic  bell
    24  jar  vending  machine to a veteran organization, fraternal organization,
    25  or volunteer fire company, the distributor or manufacturer shall provide
    26  the contract or agreement for such sale, lease or  distribution  to  the
    27  commission  for approval and any modification to such contract or agree-
    28  ment thereafter. Such contract or agreement shall show, at minimum:
    29    (i) the name and address of the veteran organization, fraternal organ-
    30  ization, or volunteer fire company;
    31    (ii) the date of sale, lease or distribution;
    32    (iii) the serial number of each such machine;
    33    (iv) the material terms and conditions of such contract or  agreement;
    34  and
    35    (v) any additional information as the commission may require.
    36    (c)  The  commission  may promulgate rules and regulations relating to
    37  the terms of any contract or agreement for the sale, lease, or  distrib-
    38  ution  of  an electronic bell jar vending machine to a veteran organiza-
    39  tion, fraternal organization, or volunteer fire company, including,  but
    40  not  limited  to,  regulations  to ensure that revenue from play on such
    41  machines appropriately  benefits  the  veteran  organization,  fraternal
    42  organization, or volunteer fire company, and does not, instead, primari-
    43  ly  or  unduly  benefit  any  other entity, including the distributor or
    44  manufacturer. The commission, in its sole  discretion,  may  approve  or
    45  deny  such  contract  or agreement and any material modification to such
    46  contract or agreement thereafter. If the commission denies approval  for
    47  such  contract,  agreement or modification, it shall provide the reasons
    48  for such determination.
    49    § 8. Subdivision 3 of section 195-q of the general municipal  law,  as
    50  amended by chapter 4 of the laws of 2026, is amended to read as follows:
    51    3.  (a)  A  veteran organization, fraternal organization, or volunteer
    52  fire company may operate electronic bell jar vending  machines  only  on
    53  premises  that  it owns or leases. All such locations must be identified
    54  by the veteran organization, fraternal organization, or  volunteer  fire
    55  company  and  approved  by  the commission prior to the placement of any
    56  electronic bell jar machine at those premises.

        S. 10479                            6
 
     1    (b) A veteran organization, fraternal organization, or volunteer  fire
     2  company  may  operate  no  more  machines  than  the number permitted in
     3  section one hundred ninety-five-c of this article.
     4    (c) No veteran organization, fraternal organization, or volunteer fire
     5  company shall operate an electronic bell jar vending machine unless such
     6  veteran  organization, fraternal organization, or volunteer fire company
     7  is a games-of-chance licensee authorized by the commission to operate an
     8  electronic bell jar vending machine. The commission may promulgate rules
     9  and regulations as the commission deems necessary for the approval of  a
    10  veteran  organization, fraternal organization, or volunteer fire company
    11  to operate an electronic bell jar vending  machine.  If  the  commission
    12  denies  such  request,  it  shall  provide the reasons for such determi-
    13  nation.
    14    (d) The commission may authorize  a  veteran  organization,  fraternal
    15  organization,  or  volunteer fire company to operate electronic bell jar
    16  games [only if such veteran organization or volunteer fire  company  was
    17  licensed  to  operate bell jar games as of November thirtieth, two thou-
    18  sand twenty-five].
    19    (e) Each electronic bell jar  vending  machine  shall  generate  sales
    20  reports  and  such  other  information that the commission may direct by
    21  regulation. The commission shall have access to the server of each elec-
    22  tronic bell jar vending machine for the purpose of monitoring and audit-
    23  ing at no cost to the state.
    24    (f) Any unclaimed funds or tickets left in  any  electronic  bell  jar
    25  vending  machine  shall  be  retained by the authorized organization and
    26  reported as net proceeds.
    27    § 9. This act shall take effect  immediately;  provided,  however,  if
    28  chapter 697 of the laws of 2025 shall not have taken effect on or before
    29  such  date  then  this act shall take effect on the same date and in the
    30  same manner as such chapter of the laws of 2025 takes effect.
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